Land tenure policy receives plaudits from private sector

Harare Bureau

THE new policy on land tenure has sparked optimism about the potential avenues to address Zimbabwe’s long-standing land shortage through strategic partnerships between the Government and the private sector.

Some property analysts say the statement on land tenure, issued by the Government this week, aligned with existing policies that allow for urban state land to be made available for commercial development.

According to the statement, applications for land will now undergo a rigorous vetting and approval process. Property developments on State land will be subject to a condition requiring that 40 percent of the allocated land be used for high-rise apartment construction.

Subdivision of low-density stands will be permitted and encouraged, but there will be a cap on the maximum size of residential stands. The measure aims to preserve land for future generations, recognising its finite nature.

The Government will provide social housing for vulnerable households while a model rural homestead will be piloted in strategic areas to encourage replication by the broader population.

In collaboration with local authorities, the Government will revitalise derelict housing units and renew city buildings, replacing them with high-rise flats or multi-story apartments. The initiative is in line with the Government’s densification strategy.

Renowned regional property consultant Mr Kura Chihota said the new policy framework suggested that Zimbabwe could learn from China’s success in utilising municipal land to drive economic growth.

By granting commercial developers access to State-owned land, China’s property sector has contributed significantly to its gross domestic product (GDP), reaching 30 percent.

Mr Chihota, who is former chief property investment officer for the National Social Security Authority and a director of the National Building Society said the model could be applied in Zimbabwe to create new human settlements and alleviate the housing shortages.

“The Land Tenure Statement opens the door for a real opportunity for Zimbabwe’s land hunger to be alleviated by the State working with the private sector to deliver new human settlements,” said Mr Chihota.

“Zimbabwe could do well to emulate the wealth creation demonstrated in China where availing municipal land to commercial developers created a property sector contributing 30 percent of GDP.

“Privately-owned housing is an asset to the homeowner, an employment creator to the construction supply chain and a sustainable rates base for municipal Government.”

Another analyst with a local property company said by fostering collaboration between the Government and the private sector, “we can create new human settlements and provide affordable housing options for our citizens.”

The Ministry of National Housing and Social Amenities estimates the national housing backlog to be around two million units. In 2023, the Government reported that its housing delivery was at 71 percent of the target, with 156 000 units completed compared to the goal of 220 000 by 2025.

Even if the 2030 target is achieved, a deficit of 1,4 million would remain, assuming constant demand, according to Mr Chihota. A combination of policy interventions and economic factors has led to a surge in unplanned, unserviced peri-urban settlements around Harare.

Many of these settlements have been developed by land barons who disregarded urban planning laws and regulations, placing a strain on local authorities’ infrastructure.

Land barons develop haphazard and unplanned settlements that lack essential services like water, electricity, sewage, and storm water drainage.
Several regional countries have implemented programmes to address housing shortages. For example, South Africa’s RDP Housing Programme has built three million homes for its citizens.

Low-cost and social housing initiatives in South Africa are supported by a combination of direct grants and soft loans to developers. In Botswana, the government invests in and supports the Botswana Housing Corporation, providing funding for affordable housing.

Zambia’s National Housing Empowerment Fund aims to develop over 130 000 homes in Lusaka through the Affordable Housing Development Project. Other interventions include public-private partnerships to produce cheaper building materials, such as bricks.

The new land tenure policy also outlines the issuance of a more secure, bankable, registrable, and transferable land tenure document. This will significantly improve farmers’ access to agricultural finance.