A Quantitative Analysis of the Economic Incentives of sub-Saharan Africa Urban Land Use Planning Systems: Case Study of Accra, Ghana.

Abstract

The deficiency of sub-Saharan Africa urban land use planning regimes has received extensive discussion in the literature. As yet, little is known of the extent and magnitude of the economic impact of these planning regimes on the economic wellbeing of individuals and the society. This situation is further compounded by the lack of simplified and bespoke methodologies for calibrating economic impacts of planning policies even in the developed world where there are relatively huge volumes of organised data. This study aims to prescribe a simplified quantitative methodology, which is subsequently employed to gauge the economic impacts of these regimes. It proceeds on the central argument that planning regimes in the sub-region are weak with low compliance with planning regulations, partly because they do not provide incentives for property owners/developers/land users. The study adopts a cross-sectional survey strategywith questionnaires and administrative data extraction to procure the requisite data from Accra, Ghana to feed the devised methodological framework. The study establishes that Ghana’s urban land use planning regime, in its current form, imposes huge cost on residential property owners compared to its benefits; it creates a disincentive for property owners. A substantial amount of this cost emanates from pipe-borne water, and tarred roads and concrete drain infrastructural facilities. It is further established that the cost of title formalisation requirement constitutes a huge portion of the cost on express requirements under the planning regime. A major portion of this cost results from the cost other than official fees. However, on individual basis the requirement generates marginal net benefit. Incidental costs for the other express requirements, architectural design and building permit are also substantial. In terms of benefits, tarred roads and concrete drains, formalised title, electricity and pipe-borne water, individually, are found to generate the most benefits under the planning regime. The study makes a number of recommendations. These include formulation of planning policies on the basis of providing incentives to property owners/developer/land users, strategies for reduction of infrastructural and amenities costs, as well as incidental cost relating to compliance with the subject planning regime express requirements.