Is Government Land Acquisition for Projects Still Worth It?

Land rights in Uganda have been a contentious issue for decades, particularly in the face of large-scale land-based investments such as oil and gas projects among others. Government, alongside large investors, has historically sought to buy off customary land rights from communities for development purposes as anchored in the 1995 Constitution of Uganda Article 237(1), 26. the Land Act (Cap 227), Section 42 and the National Land Policy (2013) emphasizing transparency, fairness, and respect for customary and private land rights. However, this approach has led to widespread conflict, displacement, and economic development inefficiencies.

ESAFF Uganda believes that if the new National Land Policy (NLP) is to resolve Uganda’s land crisis, it must prioritize access instruments such as leaseholds, contracts, and benefit-sharing models that brings farming communities on table rather than outright land acquisitions. This shift will not only reduce sky rocketed government expenditures on development projects but also create visible development amongst the communities hosting the projects and the protection of land rights, particularly for small-scale farmers who are often victims of violent evictions.

Uganda’s land tenure system, largely dominated by customary ownership, has faced significant threats due to unstructured land acquisitions for large-scale investments. According to the Uganda Bureau of Statistics (UBOS), approximately 80% of land in Uganda is under customary tenure, with millions of households relying on it for agriculture and livelihoods. Despite existing laws, forced evictions have been rampant. A report by the Uganda Human Rights Commission (UHRC) (2022) highlighted that over 250,000 people were displaced between 2010 and 2020 due to land grabs linked to large-scale investments.

The National Land Policy 2013 sought to streamline land governance and enhance security of tenure. However, its implementation has been marred by inefficiencies. The Ministry of Lands, Housing, and Urban Development reported that the government spent over UGX 500 billion ($134 million) on compensations and legal battles related to land disputes in the past decade. Additionally, delays in major infrastructural projects due to land conflicts have cost Uganda an estimated UGX 1.2 trillion ($320 million) in unrealized economic gains.

ESAFF Uganda supports the leasehold system as a sustainable model for land acquisition, balancing development with community rights. Under this model, the government or investors lease land long-term rather than purchasing it outright, allowing farming communities to retain ownership while granting temporary usage rights. This approach minimizes displacement, promotes sustainable land use, and ensures community benefits. For success, lease agreements must be transparent, legally binding, and include fair compensation, revenue-sharing, and community participation. ESAFF Uganda urges the government to establish a land bank for voluntary land leasing. Ghana’s Customary Land Secretariat (CLS) model exemplifies this, where leasehold arrangements increased local employment by 20% and improved food security in commercial farming areas (World Bank, 2020), demonstrating its potential for Uganda’s development.

ESAFF Uganda advocates for a contract-based model where farming communities enter agreements with investors or the government, outlining land use, profit-sharing, and local employment quotas. This approach aims to empower small-scale farmers and ensure they benefit from associated infrastructure, employment, and social services. Uganda’s Contract Farming Law of 2023 supports this model by providing a clear legal framework, robust enforcement, and independent oversight to prevent exploitation.

ESAFF Uganda highlights Ethiopia's contract farming model, where structured agreements between farmers and agribusiness firms increased farmer incomes by 30%, improved productivity, and facilitated technology transfer. Similarly, India's Special Economic Zones (SEZs) offer landowners annual rent and jobs instead of permanent land loss, contributing to 12% of total exports and creating over 2 million jobs by 2022. These examples illustrate that well-designed leasehold and contract-based land use can promote inclusive economic growth, enhance community livelihoods, and reduce forced displacements, presenting sustainable alternatives to compulsory land acquisition.

In the new land policy, such models are international best practices such as the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries, and Forests (VGGT) and the African Union Framework and Guidelines on Land Policy which Uganda is a party.

ESAFF Uganda under the Land Rights Support Centre has actively advocated for responsible land governance in the country. The organization seeks to engage both policymakers and communities to promote security in land tenure. Among the efforts, were to provide legal aid services to small-scale farmers who are facing eviction threats and ensure that these farmers have access to vital information regarding their land rights.

In addition to these initiatives, ESAFF Uganda, in collaboration with the government, has executed public awareness campaigns designed to educate farming communities about their land rights. These campaigns aim to empower farmers with the knowledge and skills necessary to engage effectively in contract farming and understand leasehold processes. This educational focus is crucial for helping farmers navigate the complexities of land-related agreements and make informed decisions regarding their land. Moreover, ESAFF Uganda has been advocating for a 2% budget allocation to the land sector. This funding is intended to enhance capacity building and raise awareness within farming communities about land governance issues, thereby strengthening the overall land governance structures in the country.

Looking ahead, ESAFF Uganda is committed to supporting the implementation of the forthcoming new land policy once it is enacted. We plan to focus on increasing awareness and building the capacity of both communities and local land governance structures. To achieve their goals, ESAFF Uganda intends to work closely with the Ministry of Land and other stakeholders in the sector. Additionally, we shall further the campaigning for a 2% budget allocation for the land sector, which we believe is essential for improved service delivery and the overall effectiveness of land governance initiatives.

To ensure responsible land governance, the framers of the new NLP should:

• Prioritize Leaseholds and Contracts – Large-scale investors should lease land rather than purchase it outright to ensure community ownership and sustainable development.

• Institutionalize Benefit-Sharing Models – Communities should directly benefit from land-based investments through royalties, employment, and infrastructure development.

• Strengthen Land Governance Institutions – Increased funding and capacity-building for land administration bodies to enhance efficiency and transparency.

• Harmonize National and International Land Governance Frameworks – Align Uganda’s land policy with global best practices to protect land rights and promote responsible investments.

• Ensure Meaningful Community Participation – Consultations with affected communities must be mandatory before approving any large-scale land-based projects.

As Uganda revises its National Land Policy, adopting a progressive approach that emphasizes leasehold agreements, benefit-sharing models, and strengthened land governance institutions will be pivotal in securing land rights while fostering economic growth. The government must recognize that development should not come at the expense of its citizens. Instead, a balanced approach that safeguards customary land rights while facilitating responsible investments will ensure sustainable progress for all Ugandans.