Tanzania clarifies US investor cannot sell land in $7.9 million Lupita Island deal
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Tanzania's government says Tim Draper's $7.9 million offer for Lupita Island does not involve a sale of land, which remains under state ownership through TISEZA.
The Tanzanian government has clarified that a $7.9 million offer by United States investor Tim Draper for an island in Lake Tanganyika does not involve the sale of the land, which remains under state ownership.
The clarification follows Mr Draper's announcement on August 28, 2026 that he was selling his island because it was not being used enough. In a social media post, he put the asking price at $7.9 million or the best offer.
In a statement issued on August 31, the Ministry of Lands, Housing and Human Settlements Development identified the property as Lupita Island in Nkasi District, Rukwa Region, and said ownership remains with the Tanzania Investment and Special Economic Zones Authority (TISEZA).
The ministry said Firelight Safaris Ltd, in which Mr Draper is a shareholder, does not own the land. Instead, the company holds a Derivative Right granted by TISEZA to develop and operate a tourist hotel on the island, meaning the investor can transfer his investment to another investor, but the underlying land cannot be sold as privately owned property.
According to the ministry, the Land Act, Cap 113, provides procedures through which foreign investors can obtain land for investment under TISEZA, which retains legal ownership. Firelight Safaris is a legitimate investor and may transfer its investment to another investor, provided the transaction complies with Tanzanian laws and procedures.
The government's clarification came amid growing public interest in Mr Draper's announcement and highlights the legal framework governing land acquired by foreign investors for investment purposes.