Understanding formality and informality in land and housing exchanges in African cities

Abstract

More than 60% of Africa’s urban population lives in slums and most African countries' population subsist on under US$2.0 per day, and the average probability at birth of not surviving to age 40 is about 38%. 25 to 30% of housing in SA cities is informal; the majority of land and housing transactions are unrecorded. A worldwide Millennium development goal is to significantly improve the lives of 100 million slum dwellers by 2020. It is estimated that approximately 85% of urban land parcels in developing countries and between 40% and 53% of their rural land parcels are held in such a way that they cannot be used to create capital. Suggested solutions to these problems is to extend secure tenure; formalize land markets; extend bank and formal micro-finance (indebtedness of the poor); privatization; complex, strategic decision making tools and have research based on formal information.