ULMConference:RethinkingemergingmarketsinrapidlygrowingsouthernAfricancities

InnovativeApproachesTowardsHousingtheUrbanPoorinBotswana

Prof.A.C.Mosha

UniversityofBotswana

Moshaac@yahoo.com

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!

SocialMixattheClusterLevel‐Block6,Gaborone

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.

LandServicingBeforeAllocation–Block7Gaborone

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!!

OldNalediSquatter,Gaborone

OldNaledi–UpgradingPlan

ImprovedLowIncomeHousing

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.

3rdThrust:

Topromotehousingasaninstrumentforeconomicempowermentandpovertyalleviation

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.

THANKYOU