"Biofuel is a fast growing sector in Tanzania. some companies are acquiring big tracts of land, some up to 400 000 hectares for growing biofuel crops. It is believed that the country has a reserve of 88 million hectares for agriculture. The government is committed to promoting the sector through providing attractive incentive packages for investors. But the biofuels sector presents both opportunities and risks and the outcome would depend on the specific context of the specific country and the policies. This report is the result of review work done on policies, laws and strategies related to bio-energy. The major findings are that most of the current policies are silent on the bio-energy sector. This is not surprising as commercial biofuel is relatively new in the country. Nevertheless the impact of biofuel in the country has started to emerge. Major issues of concern have been on land acquisition and compensation procedures. The issues of sustainability are also pertinent, making the need of having a Biofuel policy in the country urgent."