Harnessing Benefits of an Improved Land Administration System: Reflection on Post-Tenure Regularisation in Kigali, Rwanda Dr. Emmanuel Nkurunziza – Director General, RCMRD World Bank Land & Poverty conference March 2018

Introduction

LAM systems & Urban Management Vibrant land markets critical to urban economic growth Secure & clear property rights determine land market dynamics – with former underpinned by LA system Land use planning which shapes urban growth, improves efficiencies in use & allocation of space also greatly relies on LAM systems Good LAM system improves property taxation & valuation – fiscal independence to support urban development investments.

Poor state of LAM systems Small percentage of property rights documented; over 70% of property unrecorded; Existing records remain manual, inaccessible, in poor condition, questionable reliability, Complicated & expensive LA procedures Hardly facilitating land use planning, taxation or land markets However the trend is positive with noticeable progress in many countries/cities adopting fit-for-purpose LA approaches

Rwanda Land reforms: Towards secure tenure & improved LA system 2005 Organic Land law gave landholders in Rwanda ownership rights, having largely had usufruct rights hitherto; Overhaul of legal framework to convey legal rights to all landholders & effect tenure regularization; contextualize standards/procedures Reform & restructuring institutions to consolidate land functions, Process to regularise this tenure began with trials and development of fit-for-purpose approach & tools in 2008/9;

Roll out of systematic land registration launched in July 2009, involving demarcation, adjudication and title issuance. Cost effective/participatory parcel demarcation using orthophotos, ‘parasurveyors’, village leaders & land owners 11.3 million parcels demarcated and mapped into a national cadaster in less than 3 years @a cost of 6 USD/parcel Electronic land register created – Land Administration Information System (LAIS) where all transactions are conducted. This is electronically linked to other key national registries e.g. national ID, taxation, mortgage registration/banks etc.

From having less than 1% of its land registered (and thus formally administered), all land was brought formal LA; A new modern LA system put in place to cope with this challenging workload; LA administration procedures streamlined, institutions reformed, requisite infrastructure put in place. Mass education & awareness to move mindsets of the population to the new dispensation (formality) Land services increasingly online; working towards financial sustainability, paperless operations & greater private sector involvement.

Results Digital cadastre and land registry, electronically linked to other key national registries e.g. national ID, taxation, mortgage registration/banks etc. Simplified land transaction procedures/forms – land administration system manual; Reduced transaction costs as land information from registry can be accessed through mobile phone query

LAIS

1st Land Administration System Manual Procedures for land transactions and registration Forms for any type of service request Requirements for all types of transaction Responsible party

Results Tenure security strengthened as claims to land are now backed by law & guaranteed by State; Disputes, particularly boundary disputes, minimal – mainly intra-familial persist; Land market active across the country, particularly in Kigali; Ease property valuation as land sizes are available as well as record of property transactions for comparison Land services easier, more transparent and faster – transfer of property duration down from over 371 days in 2008 to a day;

World Banking Doing business ranking on the indicator of registering property put Rwanda at No.137 in 2008 and No. 2 globally 10 years later. Specifically scored 28/30 on quality of land administration index (reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution & equal access to property rights) Increased revenues in land fees and taxes (increment of about USD 5m in Kigali over a short period of time) Access to information easier & transparent (mobile phone access) Facilitated detailed physical planning of Kigali & now critical in masterplan implementation as landowners can check on line what is planned on their parcels Increased investment in land and improved land management (World Bank study)

Mortgage uptake increased substantially as risk by banks & transaction costs have gone down Contributes to attraction of FDI as it improves the country’s ease of doing business ranking . A very active land market exists across the country, especially in Kigali, Several transactions have been registered in LAIS since completion of titling. In Kigali with about 390,000 registered parcels, we handle over transactions on over 50,000 parcels per year. Revenues are collected from services offered but also annual fees are levied on land leases as well as property tax on freehold properties,

Conclusion Land is very critical for any nation’s development & specifically critical for ‘cities to work’; Imperative to streamline land administration/land management to engender efficient, effective & transparent use of land. Fit-for-purpose approaches provide an opportunity to leap over hurdle of formalisation. The tools to do the technical tasks at hand are available;

Conclusion Improved LAM system: Spurs progressive land markets; Provides reliable base for land use planning & development control; Improves efficiency & transparency in land service delivery; Strengthens tenure security that in turn encourages investment Good base for revenue collection; Makes land attractive as collateral & reduces transactions in mortgage industry

THANKS