Use of money obtained from mortgage
I am a Tanzanian who has been living overseas for 10 years. I have not taken citizenship of the country where I am living and continue to own a registered land in Tanzania which I inherited from my father. I want to mortgage my land to obtain money from one of the foreign banks in the country where I am living and use the money to start a new venture overseas. How do I proceed with such registration?
Section 120A of the Land Act [Cap. 113 R.E 2019] allows any Tanzanian to mortgage her/his land for the purposes of obtaining money from a local or foreign bank or financial institution for investment purposes. However, the money obtained from the mortgage of land in Tanzania must be invested in Tanzania. The mortgagee, in this case a bank, must submit a declaration to the Commissioner for Lands that the money obtained from it by the mortgagor is invested in Tanzania.
Failure to invest in Tanzania the money obtained from mortgage of land in Tanzania constitutes a breach of conditions of the right of occupancy and may lead to the revocation of the right of occupancy. In short you cannot use your Tanzanian land to borrow abroad.