A linkage between land regularization and access to credit has been a policy priority in developing countries including Tanzania. However, formal credit markets in these countries are underdeveloped and expectations that land titling through land regularization improves access to credit are muted. A study to examine the implication of land regularization in accessing credit from formal financial institutions in Tanzania was carried out in two areas of Kimara and Buhongwa Wards in cities of Dar es salaam and Mwanza respectively. Data were collected through household questionnaire survey and key informant interviews. A total of 450 respondents were involved in this study. The regression model was used to estimate credit access from financial institutions. Findings observed insignificant implication to credit access mainly because most land owners with certificate of right occupancy had no enabling environment to link legally documented plots with the formal financial institutions to support household activation of investment on land. We also found that land owners issued with certificate of right of occupancy felt that, lack of collateral was a major stumbling block for formal credit access. We conclude that there is a need to restructure the financial plans to get coordinated and/or integrated with plans to regularize land and structure strategies to mitigate risks from households and/or firms and financial institutions to enhance household to access formal credits and activation of investments on land in regularized areas.

Land regularization has been implemented in Tanzania to promote formal land rights through the issuance of certificates of right of occupancy to land owners in unplanned settlements in peri-urban areas. However, information on challenges in the implementation of land regularization and the extent of issuance of the certificates of right of occupancy (CRO) to land owners in these settlements remains a grey area. A study to explore the challenges of land regularization and the extent of the issuance of certificates of right of occupancy was carried out in two peri-urban areas, Kimara and Buhongwa wards, in the cities of Dar es Salaam and Mwanza, respectively. A total of 441 households were involved in the study. Data were collected through a household questionnaire, focus group discussions, and key informant interviews. Qualitative and quantitative methods were used in data analysis. Findings indicate that the major challenges of land regularization were bureaucracy in the issuance of rights of occupancy, high costs in the issuance of formal land rights, and conflicts on the demarcation of land parcels for public use. A significant relationship (P<0.05) between felt challenge and socio-economic and demographic variables (education, age, and ward location) was also observed. The findings further indicate that the issuance of CROs was low and varied depending on location. Kimara Ward in Dar es Salaam City was relatively more disadvantaged than Buhongwa Ward. To mitigate these challenges, researchers recommend devolution of power to the local institutions at the ward and sub-ward level. This can reduce bureaucracy and can capture and contextualize people’s aspirations during early planning processes.