In this post, I proceed as a
follow up on my earlier post titled “Land ownership in Ghana and its
effect on Socio-economic development”. The premise of that post was to point
out the socio-economic consequences of Ghana’s current land tenure system. In
this post I present a few suggestions to fix this land tenure problem.
To start with, the protection of investors’
interests is key to look into. To protect the interests of investors and also
make Ghana an attractive destination for investment, it is necessary for the
Government to reform our land tenure system and make laws that will make it
easier for any investor to acquire large parcels of land for large-scale
agricultural activities as well as other commercial projects. Measures, which
ensure the legal security of deed and title registration over the period for
which the land is rented or leased, are urgently needed. Given Ghana’s
traditional system and cultural norms, it may not be possible for the
Government to reform the land tenure system to the extent that land can be
bought, owned and sold privately as occurs in some countries. Indeed I’m not
advocating such a radical reform.
One option for assisting with land
acquisition for large-scale commercial/economic development would be for the
Government to acquire land directly from landowners and pay compensation. The
Government could then lease the land to potential investors at market rates,
and the rental income paid as compensation to the landowners. Compensation
could be in the form of either lump sum up front payment or an annual rent over
the term of the lease. This currently occurs with some stool lands acquired by
the Government for commercial/developmental activities through the Stools Lands
Division within the Ministry of Land and Forestry in Ghana. The advantage of
this option is that potential investors will deal directly with the Government
of Ghana, which is a recognized legal and sovereign entity rather than some
obscure, individual traditional land-owner(s). This practice can be expanded, formalized
and enshrined in legislation and backed by transparent administrative
guidelines and/or regulations for its implementation.
Another option is for the Government to
facilitate an arrangement whereby landowners can participate in economic
projects as financial partners by converting the rent they would have otherwise
received from leasing or renting the land into equity. Direct financial
interest in large-scale projects can be a powerful way of achieving local
community support and commitment.
A
third option is the creation of “land banks” where land owners who may wish to
offer their land for leasing or renting on a long term basis, can register
their details. Land banks can offer a “one-stop land acquisition service” for
potential investors similar to the “free zones” concept. However, to obviate
the problems relating to land acquisition in Ghana described above, it will be
necessary for the Government to ensure that potential investors receive secure
titles to the land they are renting or leasing over the life of the rental or
lease agreement.
With so many highly educated and
progressive chiefs now occupying traditional stools and skins in Ghana, there
has never been an opportune time for a government to champion the reform of the
country’s land tenure system. This presents the current President of Ghana and
his government both a challenge and an excellent leadership opportunity, to
bring about a positive reform of the existing land tenure system for the
benefit of the country.
In
the 21st Century Ghana, we cannot continue to ignore land tenure reforms. To do
so will be at the expense of Ghana’s socio-economic development; this in the
end will unleash untold hardship on its populace.
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