Museveni advocates for family-owned companies to prevent land fragmentation
In Uganda and across Africa, the traditional practice of dividing a father's property among his children often leads to smaller and less productive land parcels over generations.
This cultural norm, while deeply rooted, is increasingly clashing with modern economic realities, resulting in reduced agricultural productivity and limited economic potential as land becomes too fragmented for effective use.
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During a recent thanksgiving ceremony for Science, Technology, and Innovation Minister Monica Musenero at Petete Primary School in Butebo District, President Yoweri Museveni addressed this issue head-on.
He emphasized the importance of avoiding the fragmentation of family property and urged communities to consolidate assets under a family company to ensure better management and increased productivity.
"When the head of the family goes to heaven, don’t fragment the property; work as a company. When you sell, deduct expenses and share the profit," Museveni advised.
He explained that a family company could allow members to meet individual needs or form their own separate companies using proceeds from the collective family business.
The division of land among children often leads to disputes, weakening family bonds as each member vies for what they perceive as their fair share.
These disputes can result in long-term tensions, fractured relationships, and even legal battles, undermining the unity that should ideally prevail within a family.
Property that should enhance family wealth often becomes a source of conflict due to common customary beliefs.
For example, a property dispute in Mbale City has severely divided a family, with allegations that a mother and her son unfairly seized a prime property, sidelining the other children.
The conflict escalated into violence, leading to the imprisonment and subsequent death of one family member in Ngenge Prison. This tragic event highlights the severe impact of property disputes on family relationships.
President Museveni's call to consolidate family assets under a family company seeks to address the issues of land fragmentation and foster family cohesion, offering a potential solution to preserve and grow family wealth across generations.
Edmund Nangulu, a legal practitioner based in Mbale, attributes the fragmentation of property to two main factors: the growing population and customary land tenure systems.
He notes that the preference for individual land ownership is strongly influenced by traditional practices and the prevalent belief in witchcraft.
These factors contribute to suspicion and mistrust among family members, especially in polygamous families, exacerbating the issue of property fragmentation.
Financial constraints significantly worsen the problem, as many families lack the resources for large-scale farming.
In Bulambuli District, for instance, large-scale agriculture is typically undertaken by outsiders, while local landowners often lease their land due to financial limitations.
Nangulu suggests that targeted support, such as offering tractor services and agricultural inputs to landowners with considerable holdings, could enhance local farming capabilities.
Andrew Byaruhanga, Executive Director of Resource Rights Africa, pointed out that the culture of subdividing a deceased person’s estate is legally mandated, especially for parents who die without a will.
He shared his personal experience of struggling with an inheritance issue for eight years. His family inherited land from their grandfather, which they collectively used to plant a woodlot that earned the family shs24 million upon sale.
However, his efforts to prevent subdivision were thwarted by the legal requirements that apply to customarily owned land.
The cultural setup in Africa, where joint ventures are not commonly embraced, also undermines this vision. Even where parents have substantial assets, including companies, children often push for division rather than collective ownership.
This contrasts with other communities, such as the Indian community, where managing family property collectively is more common.
The customary land tenure system aligns with President Museveni’s vision for managing family assets, where family members collectively own land with their names on the certificate of title.
This arrangement grants all members the right to use the land but restricts the right to sell, helping to prevent fragmentation.
However, the Certificate of Customary Ownership (CCO), which formalizes this arrangement, is not widely known or promoted by the government.
The absence of a dedicated registry for CCOs in the Ministry of Lands further complicates its implementation.
With the right legal and cultural shifts, the president’s vision could lead to more sustainable management of family assets across generations.