Government Orders Action Against Kalambo Ranch Defaulters

Government Orders NARCO to Act Against Defaulting Kalambo Ranch Investors

DODOMA: The government has issued a directive to the National Ranching Corporation (NARCO) to take immediate action against investors who have failed to honor their contractual commitments at Kalambo Ranch in the Rukwa region.

The instruction follows revelations by Deputy Minister for Livestock and Fisheries, Mr. Alexander Mnyeti, that some investors have misused the leased ranch land by engaging in agricultural activities rather than the designated purpose of cattle grazing.

“I have been informed that certain investors, some residing abroad, have acquired long-term leases on Kalambo Ranch but have not developed the land as required. Instead, they have subleased it to others. These investors must receive termination notices for breaching their contracts,” Mr. Mnyeti asserted.

Reallocating Ranch Blocks to Committed Investors

The Deputy Minister emphasized that the misused ranch blocks should be reassigned to committed Tanzanian investors ready to adhere to the intended livestock farming model.

NARCO initially entered into agreements with 27 investors for the management of ranching blocks dedicated to cattle rearing. However, Mr. Mnyeti revealed that many of these investors have failed to fulfill their contractual obligations, engaging in unauthorized agricultural activities and subleasing the land for financial gain.

During his visit to Kalambo Ranch, Mr. Mnyeti personally witnessed instances of land being cultivated, including tractors actively plowing fields—a direct violation of lease agreements.

“The agreements clearly stipulate that these ranch blocks are designated for livestock rearing, not crop cultivation. Some investors have further breached their contracts by subleasing undeveloped land for up to 8 million/- per year, rather than using it for its intended purpose,” he explained.

Debt Settlement Mandatory for Lease Renewal

To ensure compliance, the Deputy Minister directed NARCO not to renew any lease agreements unless the investors settle all outstanding debts, which exceed 1.3 billion/-.

“I am ordering NARCO to ensure that only those investors who settle their debts—currently over 1.3 billion/-—qualify for lease renewals. No debts, no renewal,” Mr. Mnyeti reiterated.

Enforcement and Compliance Measures

Speaking on behalf of NARCO’s Managing Director, Mr. Bwire Mwijabu confirmed that the corporation will implement the government’s directive promptly. He underscored NARCO’s commitment to upholding lease agreement standards and ensuring the ranching blocks align with national livestock production goals.

“NARCO is dedicated to enforcing compliance to maintain the integrity of the ranching system while supporting the livelihoods of local farmers,” Mr. Mwijabu stated.

Meanwhile, the Chairman of Pastoralists in Tanzania and NARCO Board Member, Mr. Mrida Marucha, informed the Deputy Minister that most investors in Kalambo Ranch have refused to clear their outstanding debts, which exceed 1.3 billion/-, despite repeated reminders.

Tenant Admissions and Future Compliance

During a meeting with the Deputy Minister, several tenants admitted to breaching their lease agreements and appealed for leniency. Some expressed willingness to cooperate with NARCO and abide by the prescribed regulations moving forward.

The discussion highlighted several challenges faced by tenants, including financial constraints and inadequate infrastructure, which have impeded their ability to fully utilize the land for livestock farming. Despite these setbacks, both NARCO and the investors acknowledged the importance of working together to ensure the ranching industry’s sustainability.

This latest intervention by the government signals a renewed effort to restore order in the ranching sector, ensuring that investments align with national objectives and that defaulters face appropriate consequences.