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Ministry of Lands sets new guidelines for Investors

By Administrator - Octpber 01, 2020

The minister for lands housing and urban development, Betty Kamya on 23.09.2020 affirmed that the government had approved new guidelines for investors pertaining to the mortgaging of government land. She mentioned that some investors had abused the goodwill extended by the government to them by taking out mortgages on government land and not investing the funds received on the agreed-upon projects. She mentioned that in particular cases, the land titles had been changed by investors without informing the government while in others, land would remain unutilized but encumbered which would put it at risk. As such, the following guidelines were fronted and approved; 1. Investors will be required to submit applications for investment to the relevant government entity upon which a Memorandum of Association, certificate of registration, and investment licence will be issued by the Uganda Investment Authority (UIA). 2. Investors will be required to present a business plan detailing project ideas and preliminary architectural layout of the proposed facility. 3. An investor will be required to present evidence of financial capacity to use the land and an activity plan highlighting key milestones for the first 18 months. 4. Investors will be required to sign a written commitment that the milestones will be delivered and if any investor fails, the land will be withdrawn. 5. A proposed total amount of investment in US dollars and the ability to raise funds to implement the proposed project will be required. 6. Application for land allocation shall be processed by the government in line with government policy. 7. No investor shall be allowed to take possession of land without a signed lease agreement and leasehold certificate of title. 8. Any allocation of land for which a lease agreement is not signed by an investor in a set period of time will be returned to government and reallocated. 9. An Investor shall forfeit the land in possession if the land is not utilized within 6 months. 10. Land use rights certificates shall be issued by the Minister of Lands to the investor in consultation with the leasing authority. 11. There will be restrictions to change land use, the investor shall not transfer, subdivide allocated land except with government consent in consultation with leasing authority. 12. An Investor shall only be allocated leasehold and not any other tenure of landholding. 13. Foreign investors shall only be allowed a leasehold for 49 years, but renewable upon expiry. 14. For foreign investors to be allowed to mortgage development land, they should have invested at least 60% of the investment capital value. 15. For local investors to be allowed to mortgage development land, they should have invested at least 30% of the investment capital value. 16. Once a mortgage is processed and granted to an investor, the mortgaged land or properties shall be published in the Uganda Gazette.