Delays in transfer of Customary Land affects new investments

The Vanuatu Chamber of Commerce and Industry (VCCI) has received a substantial number of complaints from its members that the acquisition of customary lands is becoming an extremely lengthy process which slows down new business investments. As it is, the VCCI wrote to the Ministry of Lands in early April 2015 to get some clarification on the issue whether the delays are due to the new land requirements or is it just slowness in processing.

The Ministry of Lands responded in May 2015 and acknowledged that there is a delay in the process of obtaining new leases over customary land. The reasons being that the process for obtaining a new lease over customary land is completely new, is more rigorous and it now involves two government departments in two different government ministries not just the Lands Department, as well as it requires the free prior informed consent of all declared custom landowners.

The Ministry of Lands continued on to state that it is currently piloting the new process for obtaining new leases over customary land on Efate, Santo and Tanna with the first set of applications for negotiating certificates. The piloting program started in February 2015 but was interrupted by cyclone Pam. It has recommenced and soon the first certificates will be issued.

The Ministry claimed that the new process has improved the Lands Department registration system and that it contributed to Vanuatu’s improved ranking in the World Bank’s “ease of doing business” index in 2014.

Whether the new process improved the Lands Department registration system and improved Vanuatu’s ease of doing business ranking or not, members of the VCCI would like to see a shorter and practical process whereby new investments that are intended to begin should begin as scheduled. A delaying process puts investors off, they pull out from investment and business projects and leave Vanuatu for better business environment overseas, and it affects business opportunities.