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The main objective of this study was to assess the impacts of biofuel investments in local livelihood systems and local economy in Tanzania. Specifically, this study intended to assess the procedures used by investors to acquire land and determine whether they adhered to regulations governing biofuels investment; describe the practices of biofuel investments in the study area; assess the socio-economic and environmental impact of biofuels investments in the study areas; assess delivery of promises by investors for local development; assess perceptions of smallholder farmers on biofuel investments in the study area; and finally develop recommendations based on whether the local population have benefited from the biofuel investments in their localities.