African cities are poorly positioned to finance their infrastructure needs through any of the typical forms of infrastructure finance such as grants or transfers from central governments, using their own revenues or from borrowing. A further possible source of finance for infrastructure is land-based financing, the use of regulatory instruments to require that property developers and land owners contribute towards the financing of infrastructure that both provides services to their projects and significantly enhances the value of their property. Land-based financing is seldom, anywhere in the world, able to cover a city’s entire infrastructure costs, but it can make a significant contribution and this lessens 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 implemented.
African Centre for Cities. Harnessing land values to finance urban infrastructure in Sub-Saharan Africa: project summary findings discussion. African Centre for Cities, Cape Town, South Africa (2015) 4 pp.