Who We Are
The National Land Value Capture Programme
The National Land Value Capture Programme aims to strengthen the capability of South African metropolitan governments to efficiently and effectively implement innovative Land Value Capture tools and strategies. The Programme is a tripartite partnership between the Development Action Group (DAG), the Lincoln Institute of Land Policy, and the National Treasury’s Cities Support Programme (CSP) and was launched in March 2020.
The Problem
South African cities are trying to overcome spatial segregation and urban inequality through social service delivery, public infrastructure investment and spatial transformation. However, at the same time, municipalities face growing fiscal constraints which will only intensify over the coming years.
A way to finance more inclusive urban development
Land value capture is a policy approach that enables communities to recover and reinvest land value increases that result from public investment and government actions. Land value capture is rooted in the notion that public action should generate public benefit.
Recent Publications
Applying Tax Increment Financing in South Africa – Lessons and Insights from the Dunkeld Pilot
Tax Increment Financing, or TIF, is a public finance tool that redirects the rise in property tax revenues stimulated by infrastructure investments, to fund urban development projects.
By capturing future tax growth, municipalities can unlock immediate capital for critical infrastructure. The concept was initially assessed for application in South Africa through a pilot study in Dunkeld, Johannesburg, led by the City of Johannesburg (CoJ), National Treasury, and the World Bank in 2015. The pilot sought to determine whether the anticipated tax increments from the redevelopment of the Dunkeld neighbourhood in Johannesburg could finance the infrastructure upgrades required for Dunkeld’s development.
Size Limited Inclusionary Housing in Johannesburg
In 2019, the City of Johannesburg (CoJ) Municipal Council approved South Africa’s first municipal-wide Inclusionary Housing Policy. In response to push back from developers and political leadership, the City made a compromise in the policy where inclusionary housing was not defined in terms of price only, but also in terms of unit size. This was met by some criticism, which questioned whether smaller units with no price limitations could genuinely promote inclusion and affordability. This publication reflects on the first four years of the policy’s implementation, with a specific focus on the size-limited approach.
Past Events
National Land Value Capture Dialogue 2023
The National Land Value Capture Dialogue was hosted on 1 November 2023 by the National Land Value Capture Programme. The Dialogue brought together more than fifty urban practitioners from government, civil society, the built environment sector, the private sector, academia, and development organisations. It sought to reflect on the first four years of the programme, critically engage with the concept of land value capture (LVC) as it applies to South African cities, and look towards the future of LVC and the next four years of the LVC programme. The summary report distills the key themes that emerged during the Dialogue.
Partners
The National Land Value Capture Programme in South Africa was initiated in March 2020 by a
tripartite partnership between the Development Action Group (DAG), the Lincoln Institute of Land
Policy, and the National Treasury’s Cities Support Programme (CSP).
