Amanze Chinonye
American billionaire investor Tim Draper has put his 110-acre private island resort on Tanzania’s Lake Tanganyika on the market for $7.9 million, a proposed sale that could involve regulatory complexities under the country’s rules governing foreign investment and land rights.
Draper, an early investor in companies including Tesla and SpaceX who made much of his fortune through technology and cryptocurrency investments, said he was selling Lupita Island because he does not “use it enough”. He invited prospective buyers to contact him directly and included an email address in his sale announcement.
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Draper told Forbes he had received several offers since announcing the sale on Friday afternoon and expected the property could “be sold quickly”. He is asking $7.9 million but said he would also consider the “best offer”.
Draper acquired Lupita Island in 2004 and spent about four years developing it into a luxury safari destination. The resort has 10 cottages, a spa, gym, game room, multiple bars and a swimming pool.
The resort has been operated as a private rental property, with services including a private butler and more than 30 staff members. Activities offered to guests include boating, swimming, kayaking, snorkelling and fishing, while mainland safaris are also available.
Access to the property involves travel through Tanzania’s major airports before a further journey by private aircraft and boat or a commercial flight to Mpanda Airport, followed by a road trip and boat transfer.
The proposed sale could raise questions over the transfer of the land rights attached to the property because Tanzania does not allow foreigners to hold unrestricted freehold ownership of land.
Under Tanzania’s Land Act, all land is public land vested in the President as trustee for Tanzanian citizens. Foreign investors can obtain rights to use land for approved investment purposes through arrangements including rights of occupancy, derivative rights and long-term leases.
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The Tanzania Investment Centre says foreign investors may acquire land for investment through government-granted rights of occupancy, derivative rights or lease arrangements.
A prospective foreign buyer would not simply acquire unrestricted freehold title to the island through a conventional private sale.
Any transfer would have to comply with Tanzania’s land and investment laws and the conditions attached to the specific rights under which the property is held.
The regulations do not necessarily prevent Draper from selling his interest in the property. The key issue is whether the relevant land or leasehold rights can be transferred to the proposed buyer and whether regulatory approvals are required.
Draper’s proposed sale comes as Tanzania continues to attract foreign investment in tourism while maintaining restrictions on direct foreign ownership of land.
The outcome of the transaction will depend on the legal nature of Draper’s existing interest in Lupita Island and the requirements applicable to its transfer.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
