LandNet Rwanda Chapter Consultative Meeting on Land Lease and Land Taxation - Meeting Declaration

LANDNET RWANDA CHAPTER CONSULTATVE MEETING ON
LAND LEASE AND PROPERTY TAXATION

9TH-10TH February 2012 at UMUBANO Hotel, Kigali

DECLARATION FROM THE MEETING

We, participants gathered in Kigali, at Umubano Hotel, February 9-10, 2012 at the LandNet Rwanda Chapter consultative meeting on Property taxation and land lease, aiming at providing dialogue between the grassroots, civil society, local administration and policy-makers on the best procedures for the land lease and property taxation in Rwanda, affirm a collective commitment to put in place appropriate coordination mechanisms to bridge existing information gaps and misunderstandings between the population and policy-makers on property taxation and land lease.

We affirm with great appreciation the continued commitment of the Government of Rwanda in supporting and welcoming the dialogue with civil society and providing open space for addressing the land issue in the country, which is very critical in the implementation of land reform in a post-conflict setting.

We acknowledge that the existing land laws and policies are protective of citizens’ land rights and are in line with the Government’s economic development policy; therefore land should generate revenue like any other property to foster national development.

We affirm that the current national discussion about property taxation and land lease is a public concern, and should be addressed accordingly.

We therefore come up with the following recommendations:

1. The government of Rwanda together with LandNet Rwanda Chapter should put in place effective mechanisms to raise public awareness and to insure adequate information of the population in regards to property taxation and land lease fees. This should include wide public awareness campaigns on the importance of land lease and property taxation, capacity building of relevant actors in understanding relevant legal provisions, as well as constant monitoring of the process through documentation and research.

2. Effective measures should be taken by the Government of Rwanda to find social balanced solutions for the lease fee on land belonging to vulnerable people who cannot afford to pay.

3. As Rwanda is still dependent on agricultural economy and given the land scarcity, no piece of land should remain undeveloped.

4. Given the gaps in understanding of land lease and taxation including the fixed rates and categories by both public and local leaders, there is a need for more deep studies and research.

Done in Kigali, February 10th, 2012

Annie Kairaba in The Chronicles on land lease contracts

Annie Kairaba, the Director of Rwanda Initiative for Sustainable Development (RISD) and Coordinator of LandNet Rwanda Chapter, gave an interview to The Chronicles and shared her organisation’s views on land reform and their key interventions. She focused especially on the new land lease contracts and raised concerns about their impact for the local population.

Read the full interview and an additional article on the same topic here:

The Chronicles: 20 year land lease in urban areas too short - Kairaba, 08.02.2012

The Chronicles: New Land Lease Contracts bad for business - Civil society activist, 08.02.2012

Press review: LandNet Rwanda Chapter Consultative Meeting on Land Lease and Land Taxation, 09.-10.02.2012

The LandNet Rwanda Chapter Consultative Meeting on Land Lease and Land Taxation, held in Umubano Hotel in Kigali from the 09.-10.02.2012 brought together local leaders, decision makers, civil society organizations and representatives from Rwanda Natural Resource Authority (RNRA) to hold dialogue on the best procedures for land lease and taxation in Rwanda.

Several media institutions were represented and followed the meeting throughout. 

Please find a selection of the media coverage on the meeting in the pressreview: 

The New Times: Civil Society calls for increased sensitisation on land tax, 12.02.2012 

ORINFOR: Barasabwa kubaruza ubutaka bwabo, 10.02.2012

Igihe: SensitizationCampaign on Land Taxation Intesifies, 09.02.2012

Radio Flash 89.2 Fm: Land Concerns, 09.02.2012

LandNet Rwanda Chapter Consultative Meeting on Land Lease and Land Taxation, 09.-10.02.2012

Current situation

The Rwanda Natural Resources Authority (RNRA) anticipates completing the land registration and issuance of title deeds by December 2013. These title deeds come with an obligation of the land owners to pay an annual land lease fee, with exception of land owners in rural that have less than  2 ha and use land for agricultural activities. However, whereas the provision make a lot of sense in terms of ownership and citizens responsibility, the implementation of this obligation for paying lease and determining on who is exempted has recently created some confusion especially for the majority poor rural. There is also the issue of property tax, as provided for in law no.59/2011 of 31/12/2011, establishing the sources of revenue and property of decentralized entities and governing their management. Hence, there is a general confusion in understanding what tax or lease to be paid; who pays the tax and lease; and who is exempted. These are the issues LandNet  Rwanda Chapter wish wishes to table for public dialogue, so as to contribute to the ongoing land reform in the country.

Therefore, given this confusion which has mainly been raised by the majority rural population who have been asked to pay lease for their land in a situation that is not clear enough, since end of last year Prime Minister Pierre Damien Habumuremyi, has moved a campaign for the responsible ministries to clear the public confusion on these process of land lease and land tax. This was one of the big issues, in the last National Dialogue of December 2011.  

“We need more time to create more awareness among the population about the importance of paying the lease fees. There is a need for clear assessment of the process to remove any irregularities. The government doesn’t want this to be seen as a burden on its citizens but rather a tax which is affordable to everyone. As a government, we put the needs of the citizens first,” Habumuremyi said, ordering an immediate assessment of the payment procedure.

This is a move that is appreciated by LandNet Rwanda Chapter, and committed to support the population in understanding the process in the interest of their land rights.

Points of public discussion

• Fees compared to the value of land itself.
• Identification of people classified as ‘poor’ or ‘needy’ whose land is next to neighbourhoods classified as ‘high end’, especially people who originally lived in the city.
• Land that is not more than 2 hectares and used for agricultural purposes should not be taxed.
• People with land in the city considered as “rural” and not more than 2 hectares, should not be taxed, unless the owner wants to change the land for commercial production.
• City resident’s land which is registered for residential purposes but is used for agricultural production.
• Categorization of wetlands
• Sensitization of the population on the taxation procedures.

LandNet Rwanda Chapter's contribution 

It has become clear that the discussion and confusion about land taxation and land lease is a public concern which comes out as a national issue.  As contribution of the Rwandan Civil Society, LandNet Rwanda Chapter, in its role as an advocacy network is organizing a two day consultative meeting on Land Lease and Land Taxation on 09^th and 10^th February 2012 at Umubano Hotel in Kigali as an opportunity for dialogue between the grassroots, civil society, local administration and policy makers on the best procedures for the land lease and land tax.

This consultative meeting is very important as land is key towards the achievement of economic poverty reduction and sustainable peace in Rwanda. Participants for this meeting will be drawn from a wide representation in the country from decision makers to local leaders, grass roots community and Civil Society. Your input is highly valuable in these important discussions.

Expected outcome

As seen from the meeting agenda, different sub-themes, and current issues related to land taxation and land lease will be discussed, mainly emanating from the actual issues affecting community members from the grassroots based on community testimonies and studies. Groups drawn from participants will gather together to work on the important issues raised by participants. Finally a declaration will be put together guiding the way forward and comprising the recommendations made during the meeting, with a hope of influencing the process to clear the current public concerns.

Methodology 

Presentations will be made by different stakeholders, including one from Rwanda Initiative for Sustainable Development (RISD), as a civil society member of LandNet Rwanda Chapter.  Also presentations will be made by technical staff from the RNRA, KCC and MINECOFIN. Grassroots experience will also be shared based on experiences in relation to land rights and the impact of the LTRP especially in relation to the land taxation and land lease.

IPAR - Study on the impact of land reforms and policies on women's economic empowerment

The Institute of Policy Analysis and Research (IPAR), a LandNet Rwanda Chapter member, has been awarded a tender by Oxfam to carry out a study of the impact of land reforms and policies on women’s economic empowerment. Work has begun on the project and the report is due to be completed by mid April

For information about this project please contact: info@ipar-rwanda.org

Outcomes from the IHRB Roundtable on Business, Land Acquisition and Land Use

By Christian Schulze

On behalf of LandNet Rwanda Chapter, Rwanda Initiative for Sustainable Development (RISD), attended the consultative meeting on the draft ‘Guidelines for Business on Land Acquisition and Use’ of the Institute for Human Rights and Business (IHRB) on January 27 in Kampala (Uganda). 

Dialogue and stakeholder consultation

The roundtable in Kampala brought together a group of participants from civil society and business to provide feedback into the draft document from an East African perspective with a view of finalizing the draft for the launch of the final report in September 2012. The event followed earlier convenings on this subject organized by the Institute for Human Rights and Business in Manesar, India (June 2009), Bogota, Colombia (May 2010), Johannesburg, South Africa (November 2010) and Naivasha, Kenya (February 2011). 

Based on these dialogues and recommendations made by various stakeholders the IHRB has now developed a set of draft guidelines and a framework which addresses human rights abuses with regards to land and human rights, including processes before acquisition, during acquisition, and after operations have commenced and, if necessary, relocation and rehabilitation arranged and compensation paid. 

Participants expressed clearly the need to find a solution for the issue of human rights violations caused by land investments and valued the meeting as successful. The approach of targeting business directly was appreciated and many suggestions were made towards strengthening the draft document and to find suitable and long lasting solutions, based on the respective regional land issue experiences shared from Uganda, Rwanda and Kenya (e.g. relevance of land for the livelihood; protection of vulnerable groups; land registration; land use planning; expropriation and compensation; definition of “public use of land”). The IHRB valued the discussions and input given by participants as extremely useful and promised to incorporate most of the feedback into the document. 

Identified Challenges

The main challenge found by participants, is to assure effective enforcement of the guidelines as their implementation just relies on the commitment of the respective businesses. Neither the governments of the country affected by land investment, nor the country where the business is seated are taken into any responsibility to help to move the guidelines from statement into action. In this regards some participants doubted that the guidelines, in their current status, will have a large impact as they are not addressing governments, which were identified as key actor in regard to end human and land rights violations in the region. It was therefore criticized that no government representatives were amongst the participants to share their views.  

Recommendations and the way forward

In general the consultative meeting was successful and valued as useful by the majority of the participants. There is hope that the implementation of the Guidelines on Business, Land Acquisition and Land Use through business entities will contribute to the strengthening and securing of the vital human rights of land owners affected by investment in land. Participants recommended to the meeting organizers to incorporate governments into the dialogue and consultation process to bring them on board as soon as possible. Especially government agencies responsible for attracting investors to invest in the country (e. g. Rwanda Development Board) should be at least aware of the guidelines and in the ideal case should take them as basis for cooperation with investors. 

It was also stressed that the guidelines should not only focus on foreign investment in land as many reported cases of “land-grabbing” in the region can be traced back to local investors or even local governments.

The Institute for Human Rights and Business will incorporate most of the feedback into the document and keep participants informed of next steps towards the launch of the final report in September 2012.

Further comments can be sent to land@ihrb.org until February 29, 2012.