This document summarizes Tanzania's Property and Business Formalization Program (MKURABITA) and its efforts to regularize informal settlements. It describes the multi-step regularization process used in Njombe Town Council involving awareness campaigns, training local staff, surveying land, preparing plans, and issuing certificates of occupancy. Over 650 plots were formalized in Njombe, with 54 residents obtaining loans worth over $500,000 using the new titles as collateral. The program has expanded to other areas and aims to continue building local capacity and empowering owners.

1. THE UNITED REPUBLIC OF TANZANIA
PRESIDENT’S OFFICE, STATE HOUSE
Property and Business Formalization
Program
The Critical Economic Importance of
Regularization of Informal Settlements in
Tanzania – The case of NNjjoommbbee TToowwnn CCoouunncciill
Presented by SeraphiaMgembe at the
International Symposium held in New Delhi
INDIA
7th to 9th October, 2014

2. Contents
Background
Other Government initiatives
What is MKURABITA
The Participatory Approaches
Important Steps in the Regularization PPrroocceessss
Capitalization of formalized properties
Achievements in Regularization of informal
settlements
Social economic Benefits
Challenges
Conclusion and Way Forward

3. Background
The Tanzania’s experience on the Critical
Importance of Formalizing Slums Dwellers for
Social Economic Development in Tanzania.
Formalizing Slums Dwellers/ or improving the
unplanned settlements is part and parcel of the
Tanzania’s development agenda that aims at
“Creating Better Life for All”
The problem of slums/ unplanned settlement has
existed for a long time in Tanzania during colonial
time, after independence and still dominant today.

4. SITUATION IN INFORMAL SETTLEMENTS
• Saturated houses and densely populated,
• Shortage of surveyed land and inadequate infrastructure,

5. Background
• 81% of urban properties are outside the formal
system. As a result it infrastructural
development is not done according to the plans.
• Informal settlements in major uurrbbaann aarreeaass iiss
between 45% and 70%.
• High urbanization rate standing at 4.5% per
annum (Table 1).

6. TABLE 1: URBAN POPULATION TRENDS 1948 - 2012
1948 1957 1967 1978 1988 2002 2012
Total National
Population in
(000)
7,480 8,786 11,959 ,17050 22,533 34,569 44,929
Total Urban
Population in
(000)
184 364 686 2,260 6,200 7,970 13,305
Percentage of
2.5 4.1 5.7 13.78 17.9 23 29.6
Urban Population
in Relation to
National
Population
Growth Rate of
Urban Population
1948 –
1957
1957 –
1967
1967 –
1978
1978 –
1988
1988 – 2002 2002 – 2012
6.5 6.0 11.1 9.6 13 21.7
Source: Tanzania population census 1948 - 2012

7. Government initiatives on unplanned
settlements
• Slums Clearance Program 1969
• National Sites Services and Squatter Upgrading
Program (1972 - 1990)
• Sustainable Dar es salaam Cities Project (1992 )
• Community Infrastructure UUppggrraaddiinngg PPrrooggrraamm
(CIUP) (2003 - 2012).
• Unplanned Urban Settlement Regularization
(2004).
• Property and Business Formalization Program
popularly known in its Kiswahili acronym as
MKURABITA.

8. What is MKURABITA
• MKURABITA is a Swahili acronym for Property and
Business Formalization Program.
• Conceived in October 2004, the Government focused on the
need to create a unified legal and institutional framework
that recognizes secured and accessible property and
bbuussiinneessss rriigghhttss..
• With technical support of the Institute of Liberty and
Democracy (ILD) under the leadership of Hernado de Soto
of Lima Peru the Program was conceived to be implemented
in four phases namely; Diagnostic of the Extralegal sector,
Reform Design, Implementation as well as Capital
Formation and Good Governance.

9. What is MKURABITA (cont….)
• MKURABITA is a tool of empowering the property
owners in the informal sector whose entry into the
formal market economy will raise chances for
accessing capital.
• MKURABITA is therefore a ttooooll ffoorr ppoovveerrttyy
reduction and economic growth.
• The best practice being shared was implemented in
2009 in Njombe Town Council with close
collaboration and cooperation with Njombe Town
Council.
• In 2010 the same work was replicated in Morgoro
Municipal Council and Arusha City Council.

10. The UN Award and its social
economic impact
• In 2010 MKURABITA worn a UNPSAs Award
(2nd placed after Tunisia) in the category of
Improved Public Service Delivery.
• In 2011 MKURABITA took the 1st position
followed by Tunisia (same category).
• After the 2011 Award the project was
replicated in Tunduma Township, Kinondoni
Municipality, Iringa Municipality, and Babati
Township.

11. The UN Award and its social
economic impact
• Reduction of land conflicts.
• Use of the formalized land/ plots as
collaterals for loans in financial institutions.
• For example out of the 650 Certificate of
Right of Occupancy issued in Njombe 54 of
them were used to get loans to the tune of
Tshs. 840,000,000 from the National
Microfinance Bank. This is equivalent to
about US$ 525,000.00

12. The approach in regularizing informal
settlement
• The approach used in regularizing
informal settlement is capacity building to
local government authorities.
• The approach is pprreemmiisseedd oonn ccoommmmuunniittyy
participation as a guiding principle.
• Promoting local acceptance, commitment,
financing, local ownership and hence
sustainability of the formalization agenda.

13. STEPS IN THE REGULARIZATION PROCESS
Awareness to Stakeholders
Before fieldwork, public awareness campaigns were
conducted to:
• Meeting with Regional Commissioner (RC),
• District CCoommmmiissssiioonneerr ((DDCC)),,
• Council Management Team.
• Local leaders (Councilors, Ward Executive Officers
(WEOs), Sub-ward leaders) and
• Communities.

14. Institutional Setting
Central Government
Ministry of Lands
(Approval Processes)
Local Government
(City/Municipal, Town Council)
Directors-
Planning
Survey
Mapping
Chief Valuer
Prepare Planning
Schemes
Ward and Sub-ward level
Cadastral Plans
Participate in
mobilization
Of the Communities
Beneficiaries/General Public Participate in planning
implementation

15. STEPS IN THE REGULARIZATION
PROCESS cont…
Awareness campaign -Meeting with CMT and Councilors, Njombe Town Council

16. STEPS IN THE REGULARIZATION
PROCESS cont…
Awareness campaign – Meeting with local leaders (WDC)

17. STEPS IN THE REGULARIZATION
PROCESS cont….
Awareness to community – Meeting with residents

18. STEPS IN THE REGULARIZATION
PROCESS cont…..
Training of the Technical Team
• Training to Council Staff is an innovation to decentralize
powers for the councils to implement formalization
activities efficiently without depending much on the
Central Government ,
• Training is on understanding the program and urban
land formalization objectives,
• Guidelines and procedures for implementation of
schemes of regularization,
• Conducting property identification questionnaire,
• Data gathering using Geographical Information Systems
(GIS), Arc GIS software,
• Preparation of cadastral plans and deed plans using
AutoCAD software.

19. STEPS IN THE REGULARIZATION
PROCESS cont….
Training to Council staff

20. STEPS IN THE REGULARIZATION
PROCESS cont…
Property identification
• Use of questionnaires and taking photos of
land owner(s) conducted parallel with land
surveying

21. STEPS IN THE REGULARIZATION
PROCESS cont….
Establishment of comprehensive database
With both graphics and individual land owner’s information, comprehensive
database is established using Geographical Information Systems (GIS) software.

22. STEPS IN THE REGULARIZATION
PROCESS cont….
Land surveying in Idundilanga – Njombe township
A. MKURABITA survey team B. Njombe Town Council survey team

23. STEPS IN THE REGULARIZATION
PROCESS cont…
Land surveying at Sakina area – ArushaMunicipal Council
Prism for targeting
Total station
Ranging pole

24. STEPS IN THE REGULARIZATION
PROCESS cont…
Preparation of scheme of regularization basing on satellite image –
Njombe Township
• Schemes of regularization
and surveying is done
concurrently.
• Draft of regularization
schemes and a general plan
showing individual
properties/land, where to
locate iinnffrraassttrruuccttuurraall
services and other
community facilities like
schools, health facilities
etc., is submitted and
displayed to residents in 14
days for comments and
acceptance.
• Presented to Urban
Planning Committee for
recommendation to
authorized authorities for
approval.

25. STEPS IN THE REGULARIZATION
PROCESS cont….
Cadastral plan for
Idundilanga – Njombe
township
Preparation of cadastral plans

26. STEPS IN THE REGULARIZATION
PROCESS cont…
Approval of Schemes of Regularization
and Survey Plans
• Schemes of regularization, are submitted to the
Director of Planning for approval and thereafter
Cadastral Plans are submitted ttoo tthhee DDiirreeccttoorr ooff
Surveys and Mapping in Ministry of Lands
Housing and Human Settlements Development
for approval.

27. STEPS IN THE REGULARIZATION
PROCESS cont…
Preparation of Certificate of Right of Occupancy
• This is done by council
staff using a software
known as AutoCad to
prepare deed plans.
• Owner to submit
application form
• Certificates and deed plans
prepared, printed and sent
to owners for verification,
• Sent to the Zonal Assistant
Commissioner for
endorsement and
registration.

28. STEPS IN THE REGULARIZATION
PROCESS cont…
Registered CRO by Zonal Registrar of Titles

29. STEPS IN THE REGULARIZATION
PROCESS cont…
Launching issuing of CRO’s to Idundilanga residents in Njombe Township
• Once the Certificates are registered they are issued to owners.
• The owners are required to pay the contributions in full before the certificates are issued.

30. Capitalization of Formalized
Properties
• Capitalization of the formalized assets
marks the ultimate objective of the
formalization process.
• MKURABITA provides iinnffoorrmmaattiioonn ttoo
owners on the opportunities that are
available for using their formalized
properties to access capital.
• It also provides training to the respective
owners of the formalized properties.

31. Achievements in Njombe Town
Council
• Willingness to contribute financial resources and
land for public purposes.
• Residents have contributed Tshs. 59,000,000
• Njombe Town Council has used Tshs.
25,000,000 to survey another aarreeaa ccaalllleedd
Kambarage whereby 694 plots have been
surveyed.
• Sustainability is evident as contributions from
Kambarage will be used to survey other areas
• About 54 residents have used their properties as
collateral and obtained loans worth Tshs
842,000,000

32. Social economic benefits
Land owners demolish their properties in order to provide access after
community mobilization

33. Social Economic Benefits cont….
• The local ownership and commitment promote
replication of the initiative in other areas.
• The capacity building ensures existence of
technical and Human resources at the local
government aauutthhoorriittyy’’ss lleevveell
• Experience from Njombe provided assurance
that implementation of revolving fund is
possible.
• The government is now in the process of
establishing District Revolving fund in a mode of
guarantee to mitigate the insufficient financing
change.

34. Challenges
1. Lack of land for public use
In many cases where people squatter there is no
land which is left for public use. But in order for a
place to be regularized there must be land which is
allocated for public use like roads, schools,
dispensaries or health centers
SSoolluuttiioonn::
Massive mobilization that facilitated availability
through purchase from owners or free offers from
Others

35. Challenges
2. Initial cost very high
The calculation for the cost of the regularization
exercise was over Tshs. 100,000,000 (Usd. 63,000).
Most of the urban councils would not manage to
have this sum of money
SSoolluuttiioonn::
MKURABITA provides the seed capital through the
Government budget other stakeholders are invited
to join hands with MKURABITA

36. Challenges
3. Absenteeism of Landlords
Where Landlords were declared absent it
was not possible to continue with the
identification exercise.
Solution:
Mass mobilization, sensitization, local leaders’
representation, this required acceptance and
collaboration by the communities.

37. Challenges
4. Suspicion and distrust
Being a new project there was a lot of suspicion
and distrust among the communities.
Formalization has been understood as a very
difficult eexxeerrcciissee aanndd ccoossttllyy..
Solution:
Emphasize on transparency, timeliness,
adequate sensitization and inclusion of local
and community leaders.

38. Challenges
5. Few Technical Staffmembers
Most of the urban council technical staff are few
e.g. in Njombe town Council working with land
sector, one Professional Town Planner, Two
Land officers’ technicians aanndd oonnee SSuurrvveeyy
Technician without assistants in both fields.
Solution:
Borrow staff from the Regional Administration,
technical personnel should be known before
starting urban land formalization
implementation.

39. Challenges
6. Lack of Staff for empowernment of
beneficiaries formalized Properties
on Capital Formation
This service iiss nnoorrmmaallllyy pprroovviiddeedd bbyy
private firms and is very expensive
Solution:
Train Local Government Staff and
mobilize private firms to reduce the cost,
since the market is wider

40. Conclusion and Way
Forward
• MKURABITA will continue to build capacity to
the Local Government Authorities along with
empowering the owners in capital formation.
• MKURABITA will vigorously use the private
sector to promote speed of the formalization
agenda. (Effective use of the PPP Act)
• MKURABITA calls upon friends and
development partners to partner with the
Government through MKURABITA in financing
the activities in the Five years strategic plan.

41. TTTThhhhaaaannnnkkkk YYYYoooouuuu FFFFoooorrrr
YYoouurr AAtttteennttiioonn!