The aim of this paper is to present an overview of the process of land title market and its impact on rural development, particularly in agriculture sector. Mozambique is an agriculture-based economy country, agriculture contributes with 40% of the National Gross Product (PIB) and play a very important role on food security. In addition near 75% of the population living in rural area and lay basically on agriculture, as the main source of labor and income.
With the Rehabilitation Economic Program (PRE) launched in 1987, Mozambique witnessed the transition to market economy, which was consolidate with the peace agreement of 1992. The agrarian reform and New Land Law (NLL) were set up about 1995 and 1997 respectively, and led to a set of changes on economic dynamics with the introduction of smallholder model and stimulation of private sector on agriculture activities (Wut 2001). This process has greatly influenced rural development in general, and stimulated new investments in agriculture and, as result the land demand in rural areas raise up greatly bringing up a new dynamic on land market in the country.
The NLL state that the main objective of its implementation is was to guaranty the access and land tenure both for Mozambican and foreigners. This Law define that “land within the country, is a state property and cannot be sold, or in other way aliened, mortgaged or pawned, so that national citizen, individuals groups, man and women, local community and foreigners can obtain the rights of land use individually or in co-title”.
However, this law does not create a legal framework constituted on the principle of private property and free land market as some donors desired. However it should be recognized that the NLL, in contrast to the one replaced from 1979, gives back more authority and autonomy to private investor as well as local communities. This law provides potential safeguards for rural smallholders by being more explicit than the older one in granting land use rights through occupancy, as well as by requiring local community to participate in the formal land title process (Scott, 1997).
Although, land access is free, there is ongoing process of cash land transaction in the country, which involves people from the community, individuals “sellers” and the interested group of “buyers” of land rights or titles and the arising questions are: 1) how do community has been negotiating their land? 2) what are the implications of this process both for the “sellers” and “buyers” and for government as well?
To grasp this issue, the present paper discusses in the first place the modes of land acquisition in rural areas as well as the process of deed registration. The study outlines the different ways of land acquisitions based on new land law and some field experience in rural areas. Secondly it seeks to understand the process of land market and the prices dynamics including the implication for community. Finally discusses the issues related to irrigated agriculture activity with focus to people who had bought land.
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