African cities are poorly positioned to finance their infrastructure needs through typical infrastructure finance, such as central government grants or transfers, city own revenues or borrowing. Another possible source of finance for infrastructure is land-based financing, whereby regulatory instruments require property developers and landowners to contribute towards financing the infrastructure that services and significantly enhances the value of their property. Land-based financing cannot cover a city’s entire infrastructure costs but can make a significant contribution, thereby lessening the city’s dependence on other sources of finance. This study examined the different forms of land-based financing and sought out places in the region where it is being implemented.
African Centre for Cities. Harnessing land values to finance urban infrastructure in Sub-Saharan Africa: project summary findings. African Centre for Cities, Cape Town, South Africa (2015) 2 pp.