“Biofuel investment in Tanzania has been welcomed on the grounds of its expected ability to reduce energy costs, increase national income, and help in transport and agriculture sectors by providing income and rural energy, thereby alleviating poverty. However, in Tanzania biofuel investment is unfolding in absence of a biofuel policy. The principle aims of the present study were to understand the manner in which biofuel investment is managed in the country; establish the extent to which the local communities are aware of the threats and benefits of the investment; and determine the level of involvement and participation of the local communities in the decision-making process, especially the decision to give land to the investors.”