Chronicle Editor
Rutendo Nyeve, Sunday News Reporter
THE Government is determined to enhance land management tools by automating work processes and updating databases for State land and developers.
The initiative aims at combating the emergence of land barons, reduce speculation, and unlock more capital for development.
This was revealed by the Ministry of Local Government and Public Works’ Permanent Secretary Dr John Bhasera recently while addressing various stakeholders under the ministry’s purview.
He also emphasised the importance of local authorities updating their valuation rolls by June 2024 to generate revenue, as the real estate sector contributes 2,9 percent to the annual Gross Domestic Product (GDP).
“One of the critical areas that the ministry is looking into is Government valuation and State management. We need to update our database of State land as well as that of developers.
“In terms of valuation capacity across local authorities, the department has to take a leading role in that respect, through an internship programme. At the moment 68 percent of local authorities do not have an updated Valuation Roll, hence the revenue losses.
“Real estate activities contribute 2,9 percent to annual Gross Domestic Product, it’s huge but I suspect this can be bigger if we do things properly on the valuation rolls. As Government, we have 44 000 properties. I promise you the value can run into billions. The value of real estate (all land and capital developments) for Harare, as an example, was $834 million in 1980 and now US$16,8 billion. This is some phenomenal growth in real estate key to financial resource mobilisation,” said Dr Bhasera.
He said there was a need for the automation of all work streams and processes as well as coming up with guidelines that will have to be approved by the ministry.
“We also need to strengthen our offer letters and minimise speculators through putting in time-framed milestones. We need to revise the State land management guidelines and have these approved by the minister as soon as possible,” said Dr Bhasera.
In a separate interview with Sunday News, Director of Communication and Advocacy in the Ministry of Local Government and Public Works, Mr Gabriel Masvora said the Government has given directives with regards to the valuation of properties for rating purposes.
“Government has directed that all local authorities, as provided for in the law, should value their properties by 30 June, 2024 while all budgets for 2025/26 should be based on such valuations.
“Local authorities can use devolution funds to pay for such valuations, subject to approval by the Ministry of Local Government and Public Works.
“The valuation of land will enable local authorities to have a balance sheet which reflects true value which will make it easier for them to raise money from financial institutions as well as sell land and levy rates based on ruling market prices,” said Mr Masvora. –@nyeve14
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