THE CONCEPT OF GENERAL LIMITATION ON FOREIGN LAND OWNERSHIP UNDER RWANDA’S NEW LAND LAW, 2021
In the spirit of ongoing regulatory reforms, Rwanda has enacted a new Land Law, Law N° 27/2021 of 10/06/2021 governing land which repeals Law no 43/2013 of 16/06/2013 governing land in Rwanda, Law no 24/2012 of 15/06/2012.
Foreigner
This Law defines a foreigner as an individual without Rwandan nationality, individuals who co-own land, a company, an international organization or cooperative, with legal personality from a foreign country.
Modes of land ownership for foreigners
The new Land Law discusses the different modes:
a) Freehold tenure
The new Land Law defines a freehold tenure as a form of land tenure based on a contract between a person and the State, where it grants him or her full and indefinite rights over the land.
Under Article 6 of this Law, a Rwandan is entitled to freehold tenure. However, a foreigner may be granted a freehold title form of land tenure via a Presidential Order and for exceptional circumstances of strategic national interest.
b) Emphyteutic lease
Under Article 16 of this new law provides for foreigners rights on land by stating that a foreigner has rights to an emphyteutic lease and a land concession. These rights are however only allocated for investment purposes.
The emphyteutic lease and land concession period does not exceed ninety-nine years which is renewable.
c) Land concession
The land concession involves a contract between a State and a person where it grants him or her right to use a private State land for investment and social welfare purposes for a fixed term.
A State land may be subject to concession for improvement of social welfare of the population and for strategic investment.
A concessionaire of a State land signs a land concession and acquires a concession title in accordance with the requirements determined by a Prime Minister’s Order.
The term of land concession depends on the nature of the project and the land use but cannot exceed forty-nine years. This term may be renewed upon consent between the State and the concessionaire depending on the nature of investment and the way he/she exploited the land.
A land concession is granted to an investor to whom a land has been conceded for strategic investment including for agricultural use, livestock, forestry, tourism, social welfare activities, sports and leisure, mining and quarrying and scientific research activities.
However, an investor to whom a land has been conceded for agricultural use may be granted emphyteutic lease basing on the state of infrastructures that he or she has installed on that land.
Rights of Investor to land conceded for strategic investment
An investor to whom a land has been conceded for strategic investment has no right to sell, transfer or mortgage the land. However, he or she may sell, transfer or mortgage the concession rights on the property on that land in accordance with the land concession and the remaining land concession period. An investor or a person to whom these rights have been transferred is not allowed to transfer his or her rights on the land or to change the investment activities for which the land was conceded to him or her without prior approval of the organ in charge of investment.
Conclusion
With regard to foreign ownership of land in Rwanda, the new Land Law entrenches the concept of foreigners only being able to granted land for strategic national interest which include investment purposes only. This new law thus sets a general limit on land ownership by foreigners in Rwanda.