Tanzania: US investor cannot sell land in $7.9 million island deal

Dar es Salaam. The Government has clarified that a $7.9 million offer by United States investor Tim Draper for an island in Lake Tanganyika does not involve the sale of the land, which remains under State ownership.

The clarification follows Mr Draper’s announcement on August 28, 2026 that he was selling his island because it was not being used enough.

“I am selling my island in Lake Tanganyika, Tanzania. Gorgeous place, but we don’t use it enough,” he said in a social media post, putting the asking price at $7.9 million or the best offer.

However, in a statement issued on August 31, the Ministry of Lands, Housing and Human Settlements Development identified the property as Lupita Island in Nkasi District, Rukwa Region, and said its ownership remains with the Tanzania Investment and Special Economic Zones Authority (TISEZA).

The ministry said Firelight Safaris Ltd, in which Mr Draper is a shareholder, does not own the land. Instead, the company holds a Derivative Right granted by TISEZA to develop and operate a tourist hotel on the island.

The distinction means the investor can transfer his investment to another investor, but the underlying land cannot be sold as privately owned property.

“The Land Act, Cap 113, provides procedures through which foreign investors can obtain land for investment under TISEZA, which retains legal ownership of the land,” the ministry said.

According to the ministry, Firelight Safaris is a legitimate investor and may transfer its investment to another investor, provided the transaction complies with Tanzanian laws and procedures.

The Government’s clarification comes amid growing public interest in Mr Draper’s announcement and highlights the legal framework governing land acquired by foreign investors for investment purposes.

Under the arrangement, TISEZA retains ownership of the land while Firelight Safaris holds the right to develop and use the site for tourism.

Mr Draper had invited potential buyers to contact him directly over the proposed transaction, describing the island as a “gorgeous place” but saying it was not being used enough.