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Ministry of Lands Unveils Tough Rules on Land Giveaways

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Ministry of Lands has unveiled tough conditions for Investors who want to acquire government land for their projects.

Speaking to the Journalists at Uganda Media Centre, the minister of Lands, Housing and Urban Development, Beti Kamya said the investors will now be required to provide documentary evidence of a bank guarantee indicating their financial capacity to develop the land.

She explained that mortgaging of government land to a third party without express permission from the ministry of lands will not be allowed from now on.

In consonance with the government policy of a private sector led economy, Kamya said the government embarked on a vigorous program to attract investors through various incentives including offering free land.

She however, said there are some investors who have abused this privilege in many ways including selling and mortgaging government land and not necessarily investing the borrowed money into agreed business projects.

“The abuse of the privileges by investors defeats the government purpose of facilitating investments thereby affecting job creation, increase in tax base, and transfer of technology among others,” she noted.

“In some instances, Investors have changed land use without notifying government; in others land remains un-utilized but encumbered putting it at risk of fore closure,” she added.

Kamya said government has therefore approved the covenants and conditions for mortgaging government land by Investors.

She said the investor should submit application for investment land to the relevant government entity with the Memorandum and Articles of Association, a copy of certificate of registration or certificate of incorporation among others.

“Government shall have powers to allocate any land for which a lease agreement has not been signed even if a lease offer has been accepted by the investor,” she said.

Kamya explained some of the terms and conditions of leasing a government land which include, no investor shall be allowed to take possession of the land without a valid lease agreement among others.

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