African Property Tax Initiative Library

Africa is the fastest urbanising continent on the planet. In order to provide citizens with adequate public goods and services and invest in the required infrastructure, African cities need sufficient and sustainable revenues. Property taxation is equitable, and provides stable funding for local governments. In developed countries, property taxes are the mainstay of local funding, with collection amounting to 2.2% of GDP on average.

In developing and transition countries, the average yield is 0.6% of GDP, while in Africa the tally averages a mere 0.38%. With many African cities booming, this represents a significant opportunity: If prosperous African cities could increase the proportion of tax collected from property, they could do much more to improve the quality of life of their communities. 

African countries face a number of technical, administrative, and political challenges in increasing property tax revenues, and research is needed to inform reform processes. To this end, the African Property Tax Initiative (APTI) was established in 2017. It is coordinated by the International Centre for Tax and Development (ICTD) with funding from the Bill and Melinda Gates Foundation. This library is intended to be of use to APTI members, with resources on the Initiative’s four core themes.

In this collection

 reset

Showing 31-40 of 46 results

  • Property taxation in anglophone West Africa: regional overview

    Lincoln Institute of Land Policy, 2009
    The Lincoln Institute and the African Tax Institute (ATI ), located at the University of Pretoria, South Africa, have formed a joint venture to better understand property-related taxation in Africa....
  • Mobilising tax revenue to finance development: the case for property taxation in francophone Africa

    University of Pretoria, 2010
    In the context of a widespread focus on decentralisation in Africa, there has been an imperative to find suitable ways to maximise potential own revenue sources at all sub-national government levels.This need in particular and the need for greater domestic resource mobilisation by African states in general have been exacerbated by the current global financial crisis that has led many countries into recession and left developed and developing countries alike scrambling to find solutions at home....
  • Mobilising sustainable local government revenue in Ghana: modelling property rates and business taxes

    University of Technology, Sydney, 2015
    Property rates and business operating license fees constitute the major revenue sources for local government authorities. Accurate assessment of these revenues enhances the revenue base and effectiveness of their generation. Assessment of property rates and business operating license fees have been identified as one of the limiting factors that inhibit the revenue potential of local government authorities....
  • Constraints on property rating in the Offinso South Municipality of Ghana

    University of Technology, Sydney, 2013
    The potential of property rate has been least tapped by decentralized governments in Ghana. This paper investigates the property rating system in Ghana through a case study of Offinso South Municipality (OSM). Questionnaires were used to gather empirical data from property owners in the municipality....
  • Taxing property in a neo-developmental state: the politics of urban land value capture in Rwanda and Ethiopia

    Oxford University Press, 2017
    Of the African states experiencing sustained growth and poverty reduction in recent decades, Rwanda and Ethiopia stand out due to the scope of their development visions and relatively effective state-driven transformation, leading them to be compared to the East Asian ‘developmental states’....
  • Property taxation in developing countries

    Chr. Michelsen Institute, Norway, 2017
    Property tax (PT) raises on average revenues of less than 1% of GDP in developing countries. In many African countries it contributes far less than 0.5%. Following such low contribution, there is a growing eagerness among policy makers to increase its share in GDP.This policy brief provides a theoretical rationale behind such enthusiasm by discussing the reasons for considering PT as a ‘good’ tax compared to other forms of taxes such as income and consumption tax. It also elaborates on conditions under which PT may lead to inefficiencies and inequities....
  • Taxing the urban boom: property taxation and land leasing in Kigali and Addis Ababa

    International Centre for Tax and Development, 2015
    Much contemporary economic growth in Africa is driven by urban service sectors including construction and real estate. This manifests in rapidly transforming landscapes and the proliferation of valuable property in the continent’s booming large cities, often accompanied by growing socio-economic inequality. In this context, improving systems for property taxation is an urgent and growing need – something that national and international policymakers increasingly recognise....
  • Perspectives from the field: SDC cooperation for property taxation

    Institute of Development Studies UK, 2017
    This paper reviews three projects implemented in the Swiss Agency for Development and Cooperation’s (SDC) Democratisation, Decentralisation and Local Governance Network (DDLGN) that aim to provide incentives for local governments to increase tax compliance and revenues.The investigation focuses on three projects that aim to improve local revenue mobilisation: (1) a competition among municipalities in Serbia, (2) a performance-based grant system in Kosovo, and (3) a project on municipal social accountability in Mozambique....
  • Designing a property tax reform strategy for sub‐Saharan Africa: an analytical framework applied to Kenya

    Wiley Online Library, 2000
    Countries throughout Sub‐Saharan Africa are exploring options to improve local property taxation. Using the case of Kenya, this article provides an analytical framework for designing an effective property tax reform strategy.The first section presents a general conceptual model of property tax revenues, identifying four critical ratios that ultimately determine the effectiveness of any property tax system—namely, the coverage ratio, the valuation ratio, the tax ratio, and the collection ratio....
  • Property tax reform in developing and transition countries

    USA Agency for International Development, 2009
    In this paper, we review the practice of property taxation in developing and transition countries, and use this history to suggest a roadmap for reform. We begin with a discussion of the conventional wisdom about the advantages of using the property tax, and of the reasons why this conventional wisdom does not necessarily travel well to the developing country setting.This discussion is important to understanding the constraints to successful reform. Next we explore the variation in the revenue performance and look for patterns that might explain why some countries do better than others....

Pages

See all content in Eldis on Taxation