Land Lease Agreement in Rwanda

Rwanda is a small East African country that is steadily gaining popularity as a business destination. As more and more investors set up shop in the country, the demand for land has increased, leading to a surge in the number of land lease agreements.

A land lease agreement is a legal document that outlines the terms and conditions of renting or leasing a piece of land. In Rwanda, land lease agreements are governed by the law number 43/2013 of 16/06/2013 relating to land in Rwanda.

The law stipulates that the maximum duration of a land lease agreement is 50 years, renewable for another 50 years. The agreement must be in writing and registered with the competent authorities.

The landowner is required to provide a land title or a land lease certificate to the lessee. The lessee, on the other hand, is required to pay rent to the landowner as stipulated in the agreement. The rent payment can be made annually, semi-annually or quarterly as agreed upon by both parties.

The agreement must also specify the purpose of the land lease, whether it is for commercial, residential or agricultural use. The lessee is required to use the land for the specified purpose and not for any other purpose without the landowner`s consent.

It is important to note that land in Rwanda is a sensitive issue, and there are restrictions on foreigners leasing land. Foreigners can only lease land for a maximum of 49 years, renewable for another 49 years. The law also requires that at least 10% of the shareholders of the company leasing the land must be Rwandan.

In conclusion, a land lease agreement is an important legal document that both the landowner and lessee must adhere to. It is important to ensure that the agreement is in writing, registered, and specifies the purpose of the lease. Foreign investors must also be aware of the restrictions on leasing land in Rwanda.