Tag Archives: land

Land title and affordable housing development in Africa – Part 2

By Evans Essienyi, AHI West Africa Associate

Last week I asked the question: Is the ‘clean and clear title’ and freehold as understood in the global North truly a prerequisite for a good affordable housing ecosystem? And what are the ways in which more complex forms of tenure can be developed and financed?

NO. Neither a freehold nor a clean and clear title is a necessary requisite for a good affordable housing ecosystem. In my view, the two components of the affordable housing ecosystem – microloan for incremental building and large scale investment by developers in affordable housing is not impeded in any way by the absence of freehold or a clean title.

Microloans for households for incremental building do not require the land as security for the loan. Micro lenders employ strategies such as regular visits, site inspection, and group lending to secure their loans. This means loans can be made to low-income people for home improvements and new constructions in the face of communal land ownership with minimal risk to the lender.

Investments in large scale developments are not subject to increased risks as a result of communal land ownership. In most Sub-saharan countries, long term leases for  large tracts of land for development can be obtained for 99 years; this about twice the life span of most housing projects. The 99-year leases are also renewable.

Also, large scale affordable housing developers can negotiate Joint Venture (JV) partnerships with communal land owners for the land to serve as a contribution from the land owners in return for an equity stake in housing development. This arrangement has the potential of increasing the success and sustainability of the housing project.

It is clear that a clean and clear title is not a necessary requisite for a good affordable housing ecosystem in the global south.

Evans Essienyi is a building technologist and real estate developer experienced in structuring low income housing projects, designing affordable houses, financing options and project development in developing countries, especially Ghana. In the USA, he was elected a Legatum Fellow at MIT, dedicated to creating innovative, sustainable, for-profit enterprises that promote prosperity in low-income countries.

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Land title and affordable housing development in Africa – Part 1

– in need of reform, or simply a more nuanced understanding?

By Evans Essienyi, AHI West Africa Associate

Affordable housing is an emerging priority in Africa. In particular, Sub-Saharan Africa is undergoing fundamental and profound changes in demographics as the 21st century moves towards its second decade. In 1983, just 21% of sub-Saharan Africa’s population of 400 million was urban, by 2003, 36% of its 700 million people lived in cities and towns. From 1990-2003 urban growth rates increased by 4.6% per annum, almost twice as much as overall population growth rates, (Stephen Giddings, 2007). At this rate of urbanization, urban managers in Africa have huge problems to grapple with; one of the most pressing being the provision of adequate affordable housing. Most analyses conclude that the development of adequate affordable houses at scale in Sub-Saharan Arica is hindered in three main categories: policy and regulatory, physical and technological and housing finance.

In my experience, the absence of clean and clear title impedes the assembling of large tracks of land at the scale require for massive housing developments. Land Tenure in most sub-Saharan Africa is Customary.  Customary land is land which is owned by Indigenous communities and administered in accordance with their customs and traditions. For example, in Ghana traditional land-owning authorities (stool chiefs, clan heads and skins) hold allodial (absolute ownership) title to land on behalf of their people. Thus outright ownership of land is still a rare form of land tenure in Ghana (Asumadu, Kwame Dr. May 2003).

Land in Kenya is slightly more complex, and is owned by four different kinds of groups: the government, county councils, individuals and groups (Kameri-Mbote, Patricia Dr. 2005).

In Southern Africa, the two principal forms of land tenure systems are customary and statutory tenure (ECA/SA/EGM. Land/2003/2). None of these forms of tenure allows clean and clear title for ownership.

Question for thought: Is the ‘clean and clear title’ and freehold as understood in the global North truly a prerequisite for a good affordable housing ecosystem? And what are the ways in which more complex forms of tenure can be developed and financed?

Continued in Part 2 next week

Evans Essienyi is a building technologist and real estate developer experienced in structuring low income housing projects, designing affordable houses, financing options and project development in developing countries, especially Ghana. In the USA, he was elected a Legatum Fellow at MIT, dedicated to creating innovative, sustainable, for-profit enterprises that promote prosperity in low-income countries.