The role of debts in facilitating land grabbing/dispossession: a case study of Kibaigwa Ward, Dodoma Region-Tanzania

This study uses the Sustainable Rural Livelihood framework to understand the role of credit/debit in facilitating land grabbing/dispossession while exploring the link between land dispossession and debts. This is the case study of Kibaigwa ward in Kongwa district, Dodoma Tanzania whereby, like in other rural areas, agriculture is the main source of livelihood. The area is characterized by small scale and large-scale farmers but because of the availability of international crop market and good infrastructure mainly Morogoro road, it has attracted a number of formal and informal financial institutions as well as individual money lenders. Empirically, the study findings show the clear link between debt and land dispossession either through collateral taking in case of debt repayment failure or involuntary selling of land to secure other collaterals mainly houses. This is due to the poor financial institutions management policies coupled with the land tenure system which does not favour rural poor as well as unreliable climatic condition which largely affects agriculture. Furthermore, land dispossession is facilitated by population increase of which farms mostly regarded as infertile have being converted into settlement areas. Scholars argue that, although not all credits are bad analysis of land and financial institutional processes and organizational structure that govern credit are of vital importance including involvement of local people to let their knowledge, perceptions and interests to be heard (Gerber 2013; Scoones as cited by Krantz 2001:2).