Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Center 8 th to 10 th of September 2009, Maputo - Mozambique 1 HOUSING FINANCING -A PUBLIC-PRIVATE PARTNERSHIP – OWNERSHIP TITLE AND LAND USE POLICY BY: MARIA DA CONCEIÇÃO QUADROS

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 2 LAND USE POLICY AND OWNERSHIP TITLE Land Use Policy (The Council of Ministers resolution No. 10/95 on 17 October Housing: Discussed in chapter of “Construction and Urbanism” Principles: (1) Land for housing is guaranteed by the State itself. (2) Ordering and planning process will be exercised by the State, allowing the private participation in conditions to be regulated.

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 3 LAND USE POLICY (cont.) (3) Urban space cannot be transferred if there have not been made “buildings or other infrastructure improvements”. (4) Infrastructures carried out in the process of urbanization aggregate value to the land which will serve as a source of income for the State and private agents. (Note: in the allocation of urbanized plots, recovery of expenditure and possibility for new processes financing). (5) Urban growth and change of use shall be carried out taking into account the people and improvements, unless there is a previously conceived ordering plan.

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 4 OWNERSHIP TITLE (1) Property: - Definition of the Civil Code (freedom of use and transmission); - Other rights to land – Land Use and Utilization Law (transmission with prior requirements). In Mozambique-Coexistence of rights - State’s Right to land property; - Private’s right to land use and utilization (with and without title); - Right to property on improvements (with and without title).

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 5 OWNERSHIP TITLE (2) General Rule: -Untitled, both in rural and urban areas. Minority: - Right is titrated or in titration. Rural Areas: - Uniform titration process (local query and opinions), with Public Administration Intervention (District Administrator, Governor, Minister of Agriculture and the Council of Ministers). - Standardized right to land.

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 6 OWNERSHIP TITLE (3) Urban areas: → 23 cities and 68 villages → All cities and 20 villages are municipalities. Legal framework: - Urban soil regulation (USR) was adopted late and little known; -Contradictions between the Land Law and the USR (acknowledgement of customary rights and occupation in good faith for at least 10 years period; - Municipal Assemblies’ competence to adopt rules on urbanization and construction, “under law”. - Framework of the RSU: cities, towns and villages population “organized by a municipal plan”;

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 7 OWNERSHIP TITLE (4) Legal framework (cont.): -Contradictions of the regulation, such as example: → Concept of urban building; → Right to land: unclear profile and content: right term, the deadline for execution of works, period of right extinction; → Urbanization and plan details as prerequisites for law assignment; -Acknowledgement of ownership law on the improvements in areas subject to urbanization, which implies: (a) Titration possibility; (b) priority in allocating alternative plots if is not possible the framing on ordering plan and compensation for improvements.

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 8 ONWNERSHIP TITLE (5) Cities and towns without registration services: -General rules applicable to rural areas; -Prevalence of customary system; -Appeal to Provincial Registration Services –Eg.: Dondo City, where was recently prosecuted a request for land use and utilization law concerning 2,000 hectares of land to rice production. -Gradual trend for titration in the case of housing E.g. in towns and areas for expansion in Inhambane, a research on the official permits issued between 1998 and 2003, from a total of 889 cases, 55% were intended for housing, 24% to production of goods and services and 21% to agricultural and cattle. (Cruzeiro do Sul e Centro de Formação Jurídica e Judiciária, 2004, “Mercado Rural de Terras, Acesso à Terra ”).

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 9 OWNERSHIP TITLE (6) Cities and towns with registration services: - Customary System; - Neo-Customary System - → Combination of reinterpreted customary practices and the formal and informal practices; → Commercialization of land; → Based on trust, what provides safety; → Cheap and fast access (Alain Durand-Lasserve, article presented in specialists meeting organized by the FIG, Commission 7, Nairobi, 2004) - Formal system.

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 10 OWNERSHIP TITLE (7) Example of formal system: -In 2003, the city of Nacala had 90% of the information on the existing districts including the registration and had made the demarcation of foreseen expansion zones in the city master plan; -However, there were still non-demarcated and occupied areas (GTZ-PPDM – Project of Municipal Development and Decentralization, 2003, Report of the round table on the Organization of the Registration Services in Mozambique, Manica)

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 11 CONCLUSION (1) 1.It is estimated that in most urban centers urban and expansion zones in sub-Saharan Africa between 50 to 90% of inhabitants have access to land by neo- customary system. (“We do not want homes, because We know that the Government does not have funds to build them, but only land”. Lázaro Mabunda, in “O País”, ). 2. The sustainability of this system has limitations: → Incompatibility with long-term planning objectives; → Environmental and infrastructure provision problems; → Customary reserves are often further from urban centers.

Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique 12 CONCLUSION (2) 3. Short and medium term solutions may be, inter alia: → Design and implementation of institutional and local administrative processes to mitigate the neo-customary system limitations; → Collaboration between public authorities, community and economic agents; → Training.