Land tenure security, household income and distribution, lesson from southern highlands in Iringa District Council

Abstract

Land distribution is a key factor in income inequality in rural areas of developing countries. This study examines the impact of land tenure security on household income and its distribution in Iringa district, Tanzania, focusing on the Certificate of Customary Right of Occupation (CCRO). Using a quasi-experimental design and Propensity Score Matching, 404 respondents were randomly selected and divided into groups with and without CCROs. Both quantitative and qualitative data were collected through surveys and in-depth interviews. Analysis using SPSS/STATA revealed that households with CCROs had higher agricultural yields, sales, and lower production costs. They also invested more in modern farming techniques and soil conservation, leading to higher incomes and reduced income inequality. Despite over 50,000 CCROs issued, credit access remains limited due to a lack of awareness and additional collateral requirements. The study concludes that secure land rights are vital for economic growth and poverty alleviation. Recommendations include increasing awareness about CCROs, facilitating their use as collateral, and exploring barriers to credit access for CCRO holders. Further research is needed to address these challenges.