Land Rental Markets in Malawi

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Date

2008

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Abstract

"Land rental markets involve temporary transfers of use rights to land. The traditional authorities (TAs), in the two areas I have investigated in Malawi, have set a rule saying that no one is allowed to rent out land. Still, the two TAs said, if renting takes place, no one should rent out their land to the same person for more than two years. If a conflict occurs between the person renting in and the person renting out, concerning whom the right owner of the land is, the person renting in is likely to win the dispute. By renting out land, the owner gives out signals saying that he does not need the land. "As a result of this, there is high insecurity for those renting out land and it leads to limitations in the rental market. "Still, people continue to rent out land, but it is often held in secret. Who are renting in and renting out land? How are people adapting to this two year limit of renting? Will this have consequences for the investments people do on the land they rent? How does land scarcity affect the rental market?"

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Keywords

land tenure and use, rent seeking, IASC

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