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ULMConference:RethinkingemergingmarketsinrapidlygrowingsouthernAfricancities
InnovativeApproachesTowardsHousingtheUrbanPoorinBotswana
Prof.A.C.Mosha
UniversityofBotswana
1&2November,2010TheForum,NewtownJohannesburg
Outlineofpaper
• Botswana–ABackground• UrbanPolicyandHousingProvision• HousingPolicy• LandPolicy• StrategiesandProgrammesforhousingthelowincome
• EvaluationandConclusion• ThewayForward.
BOTSWANA:POSTINDEPENDENCEACHIEVEMENTS• PhenomenonEconomicGrowth–Diamonds,BeefandTourism• Today,Botswanaistheworld’sfastestgrowingeconomyaveraging7%p.a(Singapore6.2%
comessecond,S.Korea6.1%third).GDPgrowthwas4.7%in2007.PercapitaGDPofnearly$15,000in2007
• Excellenttarredorengineeredroadsreachallpartsofthecountry;• Impressiveinfrastructureofmodern‐housing,dams,schools,clinicsetc.• Accesstohealthservices–100%urbanand83%inruralareas• Overhalfthepopulationhavenowcompletedprimaryeducation–In1966,only83university
students,in2005,over16,000–Newuniversityplanned.• Lifeexpectancywas67years,unfortunatelynowreducedto38yrs.duetoAIDs
HOWHASTHISSUCCESSCOMEABOUT?• Smallpop.(1.7mil)inalargecountry(581,000,sq.km)whichpossessesdiamonds• PoliticalStability‐Unitribalcountry• WiseLeadershipovertheyearssinceIndependence.• Islandofpeaceandstability• Lowtaxes,verylittlecrimeandcorruptionHowever:Therehasbeenadownturnintheeconomy,RecentEconomicCrunch;HIV/AIDsonthe
riseetc.
URBANISATIONINBOTSWANA
• InBotswanatodaynearly52%ofthepopulationisurban. In % terms the urban population rose from36.5% in 1981, to
45.6%in1991and46.3%in2001.• Urban settlements grew from 2 before independence to 24 in
1991.• Cause:Bothpushandpullfactors• Gaborone’s population grew from 3,600 people in 1966 to
186,000in2001.• By2025thepopulationwillbeintheregionof500,000.• IMPACTS• Expansionoftownsandvillages(Sprawl)intoscarcearableland• Degradationoflandinperi‐urbanareas• Unauthorizedchangeoflanduse–LeadingtodemolitionsbyLocal
Authorities.• Shortageofland,housing,socialservicesandinfrastructureetc.
STRATEGIESTOWARDSURBANSUSTAINABILITY:
• URBANDEVELOPMENTPOLICY ‐ AllsettlementsmusthaveaSpatialPlan–Themajority
arenowplanned. ‐ Landhastobeservicedbeforeallocation–Createagood
environment ‐ CrossSubsidyinlanddelivery–SubsidizedratesforLow
Income;CostRecoveryfor MiddleIncome andMarket Price for High Income. Concept of Equitability!!!
‐ Urbancentres not to besubsidizedby rural areas‐Cost Recovery
‐ Mixed residential development – All residential neighbourhoods must include low, medium and highincomeareas.Servicesthusreacheverybody–This istheenvyof mostofAfrica
‐ Upgrade all informal settlements with all amenities. Demolishemergingsquatterareas!
POLICYANDLEGALINSTRUMENTS
• Urban Development Standards – revised 1991‐Relatively High Standards; However, accommodatinglowincome(e.g.GradeIIHousingStandards)
• DevelopmentControlCode–Beforerestrictive‐1995–Enabling,Flexible,Equitable
• Laws: TownandCountryPlanningAct, Municipal by‐Laws, Ordinances, Building Regulations (Grade 2RegulationsforSHHAareas),licensesetc.
• NATIONALSETTLEMENTPOLICY–Toachievespatiallybalanceddevt.Acrosscountry
‐ CreationofaHierarchyofSettlements–Optimumprovision of services – 4 towns and 8 villagesdesignatedasPrimaryCentres.
‐ Stimulationofeconomicandindustrial growthinrural areas, through delivery of serviced land,housing and social infrastructure to accommodateinvestorsand workers.
AccesstoHousingandtheFocusontheLowIncome.
BotswanaHousingPolicy(2000)
Botswana’s Vision 2016 envisages that by the year2016, all Batswanawill be able to obtain access togood quality basic shelter both in urban and ruralareas.TheEmphasisisonHomeOwnership!
The National Policy on Housing contains measuresthatwillhelprealizethegoaloftheVision:GOAL
“istofacilitatetheprovisionofdecentandaffordablehousing for all within a safe and sanitaryenvironment..”
THRUSTOFHOUSINGPOLICYSince independence (1966) Government played adominantroleinhousingprovisionas:
Financier, Producerofhousingand Landlord.Howeverthisroleisnowchanginginaccordancewiththe National Policy on Housing (Government PaperNo.2of2000).Thethrustofthepolicyisfourfold:
i. TochangetheemphasisofGovernmentfromhomeprovisiontofacilitationinthevarioussettlementsinpartnershipwithotherstakeholders;
ii. TochannelmoreGovernmentresources(andemphasis)tolowandmiddlelowerincomehousinginbothurbanandruralareas;
iii.Topromotehousingasaninstrumentforeconomicempowermentandpovertyalleviation;and
iv.TofosteraspiritofpartnershipwiththePrivateSectorandallmajoremployersinhomedevelopmentandfacilitatinghomeownership.
INCOME CATEGORY QUALIFYING CRITERIA
(National Housing Policy)
MODE OF PROVISION
Unemployed and earn below Low Income (SHHA ) category
Unemployed OR earn below low income (SHHA) category
Poverty Alleviation and Housing schemes
Low income
Middle income lower
P4400-P24300 p.a.
P24301- P36400
Low income
SHHA PROGRAMME
Middle income upper P36401-P50000 p.a. BHC,
Serviced Land programme and
Private Sector
High Income (Lower) P50001-P60 000 p.a. BHC,
Serviced Land programme and
Private Sector
High Income upper +P60 000 p.a. BHC,
Serviced Land programme and
Private Sector
HOUSINGPROGRAMMES
1stThrust:FacilitationofHousingDeliveryAccesstoLandforHousing.LandisownedbytheStateinBotswanaandeverycitizen(maleorfemale)hasanequalrighttobeallocatedland,protectedbytheConstitution.
3TenureSystems‐Tribal,StateLand(urbanmostly)andFreehold
TheprincipleofFirstComeFirstservedobtainsandanopencomputerised(recently)registerexistsbothinUrbanandRuralAreasforallincomegroups.
Innormalcircumstances,itisnotpossibletojumpthequeue;thereisnodoubleallocationandanyundevelopedlandisrepossessedandreallocatedopenly.
LandPolicyPolicy‐Detailed
PolicystipulatesthatGovernmentshouldcontinuetoprovideoverallguidanceinlandacquisition,planningandcontrol,designandprovisionofinfrastructure,communityservicesandtechnicalassistanceinbothurbanandruralareas.
Governmentserviceslandforallincomecategories.egAcceleratedLandServicingprogramme(1987‐1997).30000plotsdeliveredofwhich22000wereresidential.Similarprogrammesareunderwaybutonalesserscale.
PolicyencouragesMixedHousingDevelopments.Stipulatesthatselfcontainedneighbourhoodsofmorethan5000peopleshouldcaterforallincomegroups
Policysaysthatlargerpercentagesofservicedlandshouldbedesignatedforlowandmiddleincomelowgroups
Costoflandservicingshouldberecovered.Howeverlowincomepayaffordablepriceswhileothercategoriespayvaryingcostrecoveryrates.
Alternativechannelsoflanddelivery
• PUBLICPRIVATEPARTNERSHIP(PPP)initiativesinlandservicinghasenteredthemarket(InGabs‐TIMEPROJECTS,SHELDON,UNIVERSAL)andmanylowandmediumincomepeoplebenefitedfromtheprogramme.
• NGOslikeHabitatforHumanity,theRedCross,ChristianCounciletc.havealsoenteredthefrayinasmallway.
• Informalarrangements (written records, agreements, witnessing, insecurity of tenure etc)
• Transactionsoflandinperi‐urbanareas/tribalishaphazardandchaoticbutlandisbeingprovidedforshelterthroughthesetransactions.Theseshouldberegularized.
• Sincedemolitionscausealotofproblems,thewayforwardisthatthereshouldbesomeformofcollaborativeandpartnershiparrangements.Thiswaythegovt.willsavecompensationmoney;revenuesofLandBoardswillincreasethroughreceiptofdevelopmentgainfees;ownersofploughfieldswillbeempowered;andlandwillbeproperlyservicedbeforeallocationortransfer.
HousingFinanceIntermsoftheNationalPolicyonHousing GovernmentguaranteesbankloansforGovernment
employeestothetuneof80%throughtheGovernmentEmployeeMotorVehicleAdvanceScheme(GEMVAS)availabletoPermanent&PensionableCivilServantsforhousingDevelopment.However,Astudy(FinmarkTrust2007)showedthatonly7%oftheloansundertheschemewereusedforhousingdevelopmentinthelast5years.
GovernmentGuaranteescitizens25%ofloanssecuredthroughtheBotswanaBuildingSociety
GovernmentallocatesfundsdirectlytothelowincomehousingprogrammecalledtheSelfHelpHousingAgency(SHHA).BuildingMaterialsLoansaregiventobeneficiaries.
Governmentsubsidizesplotpricesforlowandmiddleincomelowcategoriestomakethemaffordablee.galowincomeplotissoldforP3000‐P5000dependingonsize.ThecostrecoverypricewouldbeaboutP15000.{1US$=P6.5currently)
InstitutionalCapacityBuilding:ActorsintheHousingSector
• Department of Housing:ThisdepartmentisintheMinistryofLandsandHousing.Thedepartment’soverallresponsibilityistofacilitatehousingdeliverythroughtheformulationofhousingpoliciesandprogrammes
• Local Authorities:Thesearemainlyresponsiblefortheimplementationofalllowincomehousingprogrammesandprovidinghousingfortheirstaff.TheseincludeboththeSelfHelpHousingAgencyprogrammeandIntegratedPovertyAlleviationandHousingProgramme
• Botswana Housing Corporation (BHC):Thisparastatalwasestablishedasanationalagencytoprovidehousingbothforgovernment,localauthoritiesandthegeneralpublicatlarge.Moredetailswillbegivenwhenaddressingtheissueoflowcosthousing.
• Non Governmental/Community Based Organisations:Anumberofthesehavebeenactivelyinvolvedinlowincomehousingdeliveryinthecountrywithoutanydefinedparametersonhowtheyparticipate.
• Housing Policy Coordination : GovernmentestablishedAHousingPolicyAdvisoryCouncilin2004tocoordinatethenumerousfunctionsthatcontributetoandinfluencethedeliveryofhousinginthecountry
• The Private Sector • Individuals
2ndThrust:
ChannelmoreGovernmentresources(andemphasis)tolowandmiddlelowerincomehousinginbothurbanandruralareas
ToputthisinContextwefirstexaminetheemergenceofsquattersettlementsandthepoliciesadoptedtodealwiththephenomenon–SquatterUpgrading.
EmergenceofSquatterSettlements
• 1stsquattersettlementsdevelopedinF/Towninthe1950swhenAfricansettledonTatifreeholdlandalongriverbanks.By1975,60%ofF/Townresidentswere‘squatters’.OthersquattersettlementsinF/TownincludedMonarch,SomersetEastandWest,andTatiTown.
• PelenginLobatsedevelopedonBSAcompanyfreeholdlandbutwasgiven‘tribal’landstatus.Itstartedinthe1920sasaresidentialareafor‘Africans’workinginLobatsetownshipandsurroundingfarms.Itlackedbasicservices.PelengwasincorporatedintoLobatseTownshipin1975.
• MaipaafelainLobatsedevelopedintheearly1960swhenLobatsewasbeingconsideredtoserveasthenation’scapital.
• OldNalediandBotshabelosquattersettlementsstartedas‘workers’camps’forlabourersengagedintheconstructionofGaboroneandS/Phikwerespectively.
OldNalediSquatterSettlement
• OldNalediwaslocatedonstatelandreservedforindustrialdevelopmentswhileBotshabelolayontriballand
• Attemptsinearly1970storelocateOldNalediresidentstoNewNalediBHChousesfailed
• By1975,OldNalediresidentsaccountedforabout60%oftheGaborone’spopulationwhileBotshabelocontained40‐50%ofS/Phikwe’spopulation.
• Smallscale‘squatter’settlementshavesincedevelopedinKasane,Jwaneng,SowaTown,GaboroneandFrancistown–mostofthesehavebeendemolishedwhileolderoneswereupgradedduringthelate1970sandearly1980s.
• Sincethe1980sinformal/unplannedsettlementshavedevelopedontriballandaroundlargetownsandcities–notablyGaboroneandF/Town
SLUMUPGRADINGPROGRAMME
UPGRADINGANDNOTWHOLESALEDEMOLITION.Followingfasturbanizationcamesquattinginthemajortownsandcities
(NalediinGabs,BotshabeloinSelebiPhikwe,MonarchinFrancistown).Thegovernmentwasveryquicktonibitinthebudbeforethingsgotworsebyintroducinganincrementalslumupgradingprogrammeovertheyears,firstbyprovidingbasicnecessities(earthroads,standpipes,pitlatrines)andthengraduallybetterservicestodaylike‐tarredroads,reticulatedwater,sewersystems,socialamenitiesetc.
How?• Completepublicparticipationintheupgradingprocess–• Preparationoflayouts,plotdemarcationandRegularizationofplots• Govt.allowedcompletefreedominthedesignandconstructionoftheir
homes.Thisensuresthatculturaltraditionsarenotdestroyedandachievesmax.cooperation.
• TenureLegalization‐providedthroughtwosystems:TOPS(yearlyrenewable)andCORs(holderhastherightbutthelandbelongstothestate‐However,ItcanbetransferredtoFPSG‐Title)‐ThisprovidesSecurityofTenurethatissomuchneeded!
Continued
• Regularizationofirregularsettlements–infrastructureprovision;socialservicesandamenitiesandotherimprovements.
• Subsequentprovisionofinfrastructuretobeprovidedbyselfhelpmethodsasopposedtoinvestmentbypublicandprivatesectors.
• Limitedredevelopment–affectedindividualscompensatedandrelocated,givenplotsinnewlyplannedandservicedareas.
• EachplotalloteewasentitledtoBML.MaterialsavailedfromSHHAstore
• Anysubsequentillegalsettlementsaredealtwithswiftlywithpunitivemeasures‐DemolitionswithoutCompensationtostopsuchapractice.Ithasworkedsofar!!
SELF‐HELPHOUSING‐SiteandService• SelfHelpHousingProgramme(S+S)andanAgency(SelfHelpHousing
Agency‐SHHA)wasintroducedin1973tofacilitatelowincomehouseholdstoaccessservicedresidentialplotsandhousingfinance.
• Governmentprovidedbasicservicessuchasengineeredroads,communalwaterstandpipesandpitlatrinestothehousingsites.
• ApplicantswithincomesofP800(US$267)andP7000(US$2333)/annumprovidedfreeservicedplotsonfirstcomefirstservedbasis.AlsogivenaBuildingMaterialsLoan.
• ACertificateofRightsprovidedtenurialsecuritytothebeneficiaryoftheplot.
• Plotownerhadtodevelopacorehousewithin2years.Subsequently,thehousecouldbeexpanded.
‐ Relaxedandflexiblestandardsforhousedesigns‐ Encourageuseoflocalbuildingmaterials(GradeIIHousingStandar.• AnaccompanyingP1200(US$400)BuildingMaterialsLoanwasprovided
uponrequest,payableoveraperiodof15years.• InSHHAareas/SlumUpgradingareaspeopleonlypayaServiceLevy,not
Rates.
Continued
• Since1992‐servicestandardsinSHHAhavebeenimprovedtoinclude:individualwaterconnection,waterbornesewagesystemandelectricity,streetlights,tarredroadsandotheramenitiesprovided
• QualifyingincomehasbeenraisedtobetweenP1800(US$600)toP10,000(US$333)
• CORhasbeenreplacedbytheFixedPeriodStateGrant;developmentperiodraisedto4yearsandBMLraisedtoP20,000(US$700);BMLsnowextendedtonon‐townshipareas.
• ThishasbeenthemostsuccessfulLowincomeHousingProgrammeprovidingshelterforabout60%oftheurbanpopulationandshouldcontinuesubjecttocorrectingsomedeficienciese.g.poormanagementinsomecouncils,costrecoveryproblems,servicesdeliveryandveryslowdevelopmentofnewlyallocatedplots.
• By1992‐27,000SHHAplotsinurbanareasandP7mildisbursedforBMLs
• Governmenthasintroducedamodifiedversionoftheprogrammeinruralareas.
• Thisisasustainableshelterandinfrastructureprovisionprogramme.
Theprogrammeinitiallyoperatedonlyinurbanareas.
CentralGovernmentisresponsibleforprovidingserviced land,policyandadministrativeguidancetocouncils
Localauthorities,whichthenadministertheprogramme andprovidetechnicaladvicetobeneficiaries. CentralGovernmentalsoprovidesconstructionfinanceto councilsforonwardlendingtoeligiblehouseholds.
Beneficiariesareexpectedtobuildacoredwelling, conformingtolocalbuildingregulationsandmeetloan repaymentsoveraperiodof15years(now20years)at aninterestrateof10%p.a.(nowfree)
SHHAINRURALAREAS
Theprogrammewasextendedtoruralareasin2001– MajorVillages. ThearrangementsformanagementofSHHAprogrammein ruralareasdonotdifferfundamentallywiththecurrent set‐upinurbanareas. CentralGovernmentprovidesfundsforSHHAloansto DistrictCouncils TheCouncilsinturnloanthemtoeligiblehouseholds. Councilsalsoprovidetechnicalassistancetobeneficiaries. TheLandBoards(institutionsresponsibleforland administrationinruralareas)allocatethelandwhichis freeofcharge.
DisbursementsofSHHALoans2001to2007/8
AreaAmountdisbursedBeneficiaries
UrbanP619927843072
RuralP1836479979627
Source:Ministry of Lands and Housing June 2007
SHHAHousescompleted
32898housesarecompletedsinceinceptionoftheprogramme.
• UrbanAreas30050sinceinceptionoftheSHHAProgramme
• RuralAreas2848since2001/02
NewSHHAProgramme.
• Beingmindful of thosewhose incomesthat couldnotqualify them to get SHHA loans, in 2009, underPresidential directive, the government has introducedtwo more initiatives to help the low income accesshousing, these are the New SHHA and the TurnKeyHousingProgrammewithincreasedSHHAloans–uptoP45,000andthereisazerointerestontheloansexceptfordefaulterswhowillbecharged10%ontheloans.
• The scheme is only applicable to low incomeearnersfallingwithintheP4,400‐P36,400perannumcategory.Underthenewprogramme,beneficiariesareexpectedto start up their own housing projects using theirresources and the council would finish the project tocurbincidencesofincompletestructuresashasbeenthecasewiththeinitialP20,000loans.
Continued
• Councilsareexpectedtocarryoutinspectionstoseetheconditions of thehousingprojects thatshould becompletedthroughthe loans andtoverifythelevelofdevelopment.
• TheTurnkeydevelopmententailsconstructionofhousesataunitcostofP60000forbeneficiarieswhoopt for completedhouses. Therepaymentperiodfortheloansunderthetwoschemeswasalsoincreasedfrom15to20yearsat0percentinterest,with10percentinterestonthosewhodefaultinrepayment.
• To‐date, a total of P19,380,850 has beendisbursedfor697beneficiaries
TheSHHAprogrammeHailedasaSuccessStory
• TheSHHAhasbeenthemostsuccessfullowincomehousingprogrammeundertakeninBotswanaandaccountsforabout52%oftotalhousingprovisionandaccommodates62%ofhouseholdsinurbanareas.
INTEGRATEDPILOTPOVERTYALLEVIATIONANDHOUSINGSCHEME
Theprogrammepromoteshousingasaninstrumentofeconomicempowermentandpovertyalleviation.
Governmentprovidescapitaltopoorhouseholdstoset‐upprojectstoproducebuildingmaterials.
Participationbythehouseholdsinthebusinessventuresenablethemearnawagewhichassiststhemtobuildhousesforthemselves.
Theprojectisinthreephases.
Thefirstphaseinvolvestrainingthebeneficiariesintheproductionandmarketingofbuildingmaterials.
(a) Beneficiariesaretrainedinproducingstandardbuildingmaterialssuchasstockbricks,blocks,pavementbricks/slabsandkerbstonesaresoldatcompetitivepricesonthelocalmarket.
(b)Participantspaidbasicsalariesfromrevenuegeneratedfromtheproject.OncebeneficiariesearnanincomeitisexpectedthattheobjectiveofPovertyAlleviationwillbeachieved.
Thesecondphaseinvolves
‐ trainingbeneficiariestoconstructtheirownhouses.
‐ Theyareprovidedwithtrainingonthemostcosteffectiveconstructionmethods.
‐ Theyareloanedbuildingmaterialstoconstructtheirdwellingsandarealsoexpectedtoacquireothermaterialsnotavailableatsitesincetheyearnawage.Theobjectiveofhome‐ownershipisachievedoncompletionofthisphase.
Finally,3rdPhase,throughtherepaymentoftheinitialamountinvestedbyGovernment,arevolvingloanfundisestablishedtosustainreplicationoftheprojectinothersettlements,markingathirdphaseoftheproject.
Pilotprojectswerestartedin3areasin2000.Theyhavesincebeenextendedto8otherlocalitiesthroughoutthewholecountry
4thThrust:
Governmentseekstofosteraspiritofpartnershipwithotherstakeholderstofacilitatehomeownership.ThisentailscreationofpartnershipswithNGOs,theprivatesectorandothers.
INVOLVEMENTOFNGOS.ManyNGOshavebeeninvolved,butthemostoutstandingistheHabitatforHumanity.
‐ Anon‐profit,ecumenicalChristianhousingministryseekstoeliminatepoorhousingconditionsandhomelessnessfromtheworld.Beganoperationsin1991.
‐ Theorganisationprovidesmachinerytomakebuildingmaterialsonsitesuchasbricks/blocks.
‐ Italsoprovidesbywayofaloan,materialsthatcannotbeproducedonsitesuchasdoorandwindowframesandundertakestrainingofhouseholdsanditsco‐workers.
‐Housesaregenerallytwoandhalfrooms,madeofstabilizedearthblock,withconcretefloorsandeithertileorironsheetroofs.
AveragehousecostisP15000.
Costsarekeptlow.
Aninflationadjustmentpeggedtothepriceofcementisbuiltintothemortgages.
FrominceptionuptoJune2007,HFHBbuilthasbuiltnearly2000houses.
PromotionofPrivateSectorParticipation
TheHousingPolicysaysthat:• “Theprivatesectoris‘urgedtoinvestinhousing
developmentinthecountryforsaleandrental”• Privatecompaniesbeurgedtoinvestmoreresourcesinto
landservicingandBuildinghousesforrentalandsaleinordertocontributepositivelytowardshomeownership’.
Governmenthascreatedanenablingenvironmentfortheprivatesectortoventureintorealestatedevelopment.
Thereareminimalbureaucraticimpedimentsfortheprivatesectortoparticipateinrealestatedevelopment.
Manyhaveventuredinlandservicing,buildinghouses,financinghousing,producingbuildingmaterialsetc.
PUBLICHOUSING:THEBOTSWANAHOUSINGCORPORATION
• Establishedasaparastatalorganisation,mainlytoprovidehousingforrentorsaletocitizens.• About40percentofitsstockisallocatedtogovernmentfordistributionamongcivilservants.• Buildshousesinurbanareas,inthreecategories,high,mediumandlowcost.
• InitiallyBHC’stargetmarketnotclearlydefinedandtheCorporationwassubsidisedbygovernmentandhencecostrecoverywasnotacriticalelementindeterminingrentlevels.
• BHCwasthusabletoallocatetoallincomegroups.
• ‐Nowoperatesoncostrecoverybasisandisaccordinglytargetingthemarketnichewerereturnsarehighesti.e.themiddleandhigherincomecategories
CHALLENGESLandandLandAccessissuesAlthoughmuchhasbeendonetomakelandaccessible,thereare
stillsomemajorchallenges! Landvalueshaverisendramaticallyovertheyearsandunsubsidizedland
withinthemajortownsandcitiesarebeyondthereachofthelowincomegroup
Implementationofhousingstandardshashadtheeffectoffurtherincreasinghousingcosts
Traditionalconstructionusinglocallyavailablematerialsisnolongerpossible
Possibleinterventions‐ Buildingcodesandregulationscouldberevisedtopermitincremental
development‐ Promoteintegrateddevelopmentwithcommunitybasedmanagement
structuresandprivate/publicpartnershipsinlandandhousingfinance.AninitiativeinSouthAfricacalledCosmoCitypresentsamodelwhichshouldbelookedatclosely.
‐ Fosterpartnershipswiththeprivatesectorandotherstakeholders.
HousingDemand• To‐date,Landservicinghasbeenestimatedatover100,000
• AFinmarkstudyestimatedthatabout95000householdswillneedtobeaccommodatedbetweennowand2016.Thisassumesanaverageyearonyearpopulationrateof1.1%andthenumberofhouseholdsarelikelytobebetween470000and480000in2016.
• Themajorityoftheseadditionalhouseholdswillfallintothelowandmiddlelowincome.
• Governmenthastocontinuetostrivetofindmeansofprovidinghousingforitspeople.
HousingFinance
CommercialBanksminimumhousingloansareaboutP100000whicharenotaffordablebythelowincomegroups.
Mostbankshaveconservativelendingpractices,requirecollateral,evidenceofemploymentandtitledland
MostBankslimittheareastheywillfinancetotownscitiesandlargevillages
Possibleinterventions
‐ EncourageinstitutionsthatalreadydealwiththelowincomesuchasBotswanaSavingsBanktobroadentheirlendingservices.
‐ Promotetechnologiesthatprovidelowcostbankingservicesbymakinguseofagentssuchasretailshops.
‐ Encouragebanksinthedirectionofsocialinclusiveness.
‐ ExploreuseofPensionandProvidentFunds.TheFinmarkstudyindicatedthatPensionFundsassetsamountedtoP29.02bn.About30%ofthisbylawhastobeinvestedinBotswana.Pensionassetscanbeemployedtosecurehousingloans.Thisneedsfurtherinvestigation
BotswanaHousingCorporation
InviewoftheneedtooperateonacostrecoverybasisBHChasmovedfromitsmandatetohouseallincomegroups
MostBHChousesarebeyondtheaffordabiliyofthelowandmiddlelowerincomegroups
TheSHHAProgramme
TheSHHAmodelforurbanlow‐costhousingfinancehasallthenecessaryelementsforsuccess,asitaddressespreciselytherelevantsocialstratum.However,theschemeinitspresentformisbesetwithproblems,andoutsideinterventionisneededtorevitaliseandreenergisetheprogramme
Theprogrammedoesnotcaterfordomesticworkers,gardenerslabourersandothersearningbelowP376pm
Thereisasevereshortageofplotsparticularlyinkeyurbanareasresultinginwaitingperiodsof10yearsattimes
Alargenumberofplotsremainundeveloped Therepaymentofloansislow.Theprogrammeisnotsatisfactorily
managedresultingintheschemenotbeingselfsustaining Ruralpropertieshavelimitedmarketpotentials Mostruralplotsareunsurveyed,consequentlythereislackofpropertitle
deeds.Thishasimplicationsfortheuseoflandascollateral
Theprogrammewasreviewedin2007andnewpolicyoutcomesareawaited
RentalHousingfortheLowincome:LastHope
• Asrevealedinthepaper,themajorityofpeoplelivinginSHHAareasarenotplotholdersbuttenantsandsub‐tenants.
• Thiscallsforaneedtolookatwaystoimproverentaltenureasaviablealternativetoowner‐occupation.Sincethereisshortageoflandinurbanareasitmeansthatsomepeoplewillneverhaveaccesstohousinglandmeaningtheywillneverbeowner‐occupiers.
• Somepeopleinacertainstageintheirlifecyclemightnotbeaspiringtoownahousebutmayprefertorent.
• Thereisthereforeneedtointroducevarioustenureoptionsapartfromowneroccupation.
POSSIBLEAREASOFINTERVENTION
Partnershipswiththeprivatesectorandotherstakeholders
Microlending(whichisagrowingsectorneedstobeexaminedforpotentialhousingfinanceinvolvement
Buildingcodesrevisiontopermitincrementaldevelopment
Integrateddevelopmentasoutlinedearlier.
CONCLUSION• Botswanahasmadetremendousstridesinprovidingdecent
shelterandbasicinfrastructuretoallincomegroups.Itspolicyhasconcentratedmostlyonlowandmediumincomepeople.
• HousingProgrammeshavebeendesignedinsuchawaythattheymeetabroadrangeofincomegroups.Theprogrammesarenotstatic.Therewillcontinuetobemodifiedandreviewedwiththepassageoftimetoensurethattheymeetthegoalofprovidinghousingtoallincome
• Successhascomethroughcarefulphysicalplanning,useoflegalinstrumentsandinvolvingthepeopleinslumupgrading
• TheUrbanDevelopmentStandardsandtheDevelopmentControlCode(1995)–areenablingandequitableinserviceprovision.
continued
• Thegovernmenthasmanagedtofinanceupgradingofitsinfrastructureinitsprevious‘Slums’to‘almost’gettingridofthem.IncrementalUpgradingisthebestoption.
• UnlikeinmanyAfricannations,to‐daywehardlyseeanynewslumsemerging.Thisisarolemodelwhichcanbecopiedbyothernations.
• ThenewHousingPolicyandthenewLandPolicyhaveapproachedshelterinaholisticmannerasbothhavetakenstepstoaddressshelterandinfrastructureprovisiontomeetfutureneeds.Sustainableshelterdevelopmenthastakencentrestage.