Chinsali has a dual land tenure system with the majority of the land being held under customary tenure. The major urban land use in Chinsali is residential housing owned by individual developers. Under commercial land use, shops mainly located at the main market and at the junction and a few lodges are the major land uses. Other urban land uses include institutional infrastructure (Offices), hospital and clinics, schools/University and churches which fall under special user category. There are no heavy industries in Chinsali except for hammer mills and carpentry shops which fall under light industry category. The major land in the rural parts of the district are for subsistence farming and traditional housing
Lack of private sector investment to stimulate and sustain growth in the local economy remains one of the greatest challenges to socio-economic transformation in the District. The competitive advantage of the District lies in its rich natural resource base – abundant arable land, water and forestry reserves. Its strategic location as the provincial capital stands as a gateway to the important port of Dar es Salaam and also presents exciting opportunities for the transport and logistics industry.
Chinsali District has a substantial population to provide both skilled and unskilled labour. As economic activity grows, the population is expected to grow and attract more skilled and specialized labour for various sectors. Currently the Aquaculture, forestry, agriculture, agro-processing, construction, manufacturing and Livestock farming industries are under developed in the district.
The local economy of Chinsali remains largely underdeveloped with subsistence agriculture, seasonal collection of natural forest products and local trade as the main economic activities. Consequently municipal resources are tight on account of the narrow revenue base. Growth opportunities lie in transport and logistics, agriculture, livestock, fisheries, tourism, mining and energy.