Measures to Improve Access to Land Resources and Related Benefits in Uganda

Rexford A. AheneSenior Technical Advisor

Land ComponentPrivate Sector Competitiveness Project II

Uganda: Population 28.3 million; Surface areas 24.3 million sq. km.

Outline:

Identify principal land access concerns in Uganda

Evaluate the impact of some practical interim steps taken to minimize these concerns

Outline long term measures currently underway to improve access

Access from whose perspective?

From a land governance perspective; Physical infrastructure for inclusive land administration Legal framework that assures security of tenure for all legal land holders Processes that facilitate efficient land transactions (titling, transfers, etc.) Institutions that assure fair and equitable enforcement of contracts.

From a land market and/or private sector perspective; Availability of suitable land and land use information Security of ownership and/or property rights Time saving land use and/or development procedures Consistent treatment of all competitors (level playing field) Secure expectation of benefits from investment

Impediments to access:

inadequate property information, difficulty identifying legitimate owners, obstacles to registering property rights bureaucratic procedures corrupt and unfair pricing.

Dominant Land Tenure Regimes in Uganda

Green = Customary (50%)

Beige = Mailo(28%)

Blue = Native Freehold (22%)

Uganda: History of efforts to enhance formal access to land in Uganda

Colonial Intervention 1900 – 1940 Buganda Agreement 1900 Ankole Agreement 1902 Tororo Agreement 1903

Creation of Lands and Survey and appointment of Chief Surveyor 1901 First Mailo title registered on 2nd Jan. 1909 Survey School established in 1910 Registration of Titles Ordinance passed in 1924

By 1940, the Land Registration System was already clogged by too many claims of paper acres.

Tenure and Access Concerns

Customary tenure areas: Lineage group membership restrictions Communal ownership with usufructuary rights Land rights allocated specific to function or group Trans-generational rights to land protected Transmission designed to keep land resources within the

community, lineage and family.

Customary tenure areas ….. Traditional framework has been weakened but remains

remarkably adaptive to changing circumstances. Increasing overall insecurity (59% in the 2008 Acholi and

Lango study) Frequency of disputes due to obscure boundary

demarcations (34%) Competition due to economic pressure (land scarcity

15%) Moving rapidly towards privatized ownership (62% Teso

region) Increases inequality for women, children and other

vulnerable groups

Tenure and Access Concerns Mailo tenure areas:

Feudal tenure system superimposed over the existing customary tenure system by the British colonial administration from 1900 - 1903.

Original customary land owners became statutory occupants or Kibanja holders (tenants recognized as bonafide occupants) by the 1998 Land Act.

Landlords (Bibanja holders) cannot utilize land without evicting tenants.

Eviction of tenants require payment of compensation to all lawful or bonafide occupants.

A kibanja holder has the option of purchasing land to become a landlord

Mailo tenure areas …..

Impact on land access: With the protection provided by the law, kibanja holders

have no incentive to become landlords. The tenure system effectively blocks large tracts of prime

land from entering the market Land owners cannot effectively utilize their land without

evictions System impedes orderly planning and development. Land Act Amendments – designed to protect tenants from

forced evictions

To support the de-facto evolution of transferable “private” rights in land.

Involves the creation of a legal and institutional framework for: Expansion of clearly defined private/community property

rights Ability to freely assign rights of ownership Right to transfer some or all rights through private

contracts to other persons (by sale, lease, inheritance, etc.)

Focus attention of owners on finding the most profitable investment opportunities for their properties

Incentive to achieve higher economic and social returns from better land stewardship.

Long legacy of neglect; Near total neglect due to civil

unrest from and political uncertainty 1980 – 1990.

Lack of Adequate Personnel

Lack of Adequate Financial Resources

Limited storage space and mutilation of records.

Shortcomings of the Kampala Mailo Registry before rehabilitation:

Mutilated Title Certificates Remnants of a cadastral index map

Some preliminary interventions

Studies Carried Out between 1990 and 2004: Report on the Land Registration Procedure and the Land Registry 1990 Rehabilitation and Development of Land Survey and Registration 1990 Base for a Land Information System in Uganda – Swede Survey (1996) Design and Development of GIS including Uganda Spatial Data

Infrastructure 2001 Review of the Status of LIS – 2003 Detailed Plan for LIS Design, Development and Implementation in Uganda

2004

Digital Mapping Initiatives Kampala Mapping Project (Digital mapping with cadastral capability) 1994 CAMPUS Project : Mapping from satellite images, 1995 – 1997 Records Reorganization – (USAID/ GoU / KCC), 2002 – 2003

Shortcomings of the Land Registration systems1909 - present

Only 18% of land owners have registered title or certificate. Most land holders in Uganda have no documentary evidence of their property rights.

Registry business processes fails to provide the economy of information needed to make informed decisions.

Existing records storage and management system is archaic, manually managed and in very bad shape.

Search and verification of claims is slow and prone to errors Service delivery is slow, corrupt and unreliable.

Impact: The entire process make land risky as collateral security for loans and a

barrier to investments.

Shortcomings of the land market Land management and real estate professions are not well

established. Absence of reliable land information makes land transactions

difficult, risky and prone to principal-agent problems Financial intermediaries (Banks and mortgage finance

institutions) are forced to assume higher than competitive risk Land market information gap creates distortions that makes it

impossible to efficiently assess market risk. Contributes to an unregulated market environment

susceptible to graft and criminal activities.

Difficulty using land as collateral High volume of undocumented land holders limit access to

credit and is a hindrance to enterprise growth.

Financial institutions face high lending risk and high loan administration cost due to poor quality collateral.

20% average borrowing cost for small and medium firms 2-4.7% for land mostly foreign firms

Collateral insecurity contributes to a culture that does not penalize non payment of loans

The absence of a reliable cadastre makes it difficult to establish clear property rights or to exploit the full collateral value of land

Framework for land sector reforms: Measures to Improve Access

The Land Sector Strategic Plan (LSSP) 2001-2011 To implement the provisions of the Land Act 2008

A New National Land Policy; Resolve the land use impasse between registered Mailo tenure owners and

lawful bona fide occupants; Improve access for private investments in progressive agriculture

and urban development. Modernize and decentralize the Land Registration system Develop and Land Information System to support the land market

Two focal LSSP activities with direct impact on land access A new National land Policy (2003) Private Sector Competitiveness Project II ( effective 2005)

1. Land Policy measures to improve access to land

Goal: To develop a modern Land Registration system, supported by an

integrated, spatially referenced land information system to serve the needs of a fast growing economy.

Guiding principles To re-examine, secure and clarify the land tenure system To instill confidence in land as an asset able to contribute

competitively to development. Encourage access and investments as a tool for reducing poverty Ensure equity and justice in access and management of land as an

important human right Develop and sustain mechanisms for efficient, transparent and

participatory land governance.

2. Land Component of the Private Sector Competitiveness Project (5 year project currently at mid-term)

Core objectives:

To comprehensively restore the integrity of Uganda’s Land Registration system To modernize and enhance the ability of the land sector to deliver services commensurate

with the need of the economy

To establish a modern Land Information System and Land Records Archiving system for posterity

To develop the institutional capacity and human capital required to ensure inclusive access, equity and social justice.

To decentralize land services closer to the people

Goal: To eliminate land-based constraints to Uganda’s private sector competitiveness,

thereby encourage investment and alleviate poverty.

Principal sub-components of the Land Project?

Rehabilitation and modernization of a 21 Land Registry offices

Construction and Establishment of: Land Information System and an LIS Center Storage and Archival Center for Land Records

Rehabilitation and Reopening of the School of Surveying and Land management.

Up-dating of Un-surveyed Mailo inheritance subdivision titles, including legal aid for adjudication and possible use of systematic demarcation in customary tenure areas.

Other PSCP II Land Services Delivery Improvement Activities:

Re-establishment of the National Geodetic Control framework and Harmonization of overlapping surveys, including and Geo-referencing.

Systematic Adjudication, Demarcation, Surveying and Registration of Customary Land Rights

Piloting methodology completed in 2 Districts (av. 16,000 titles issued)

Comprehensive Inventory of all Government Land

Training and Human Resource Development for the Land Sector

Public Education, Mass Sensitization and communication program for policies, laws and activities of the project

Land Registry Modernization: Interim Records Rehabilitation and Basic ComputerizationMulti-phased activity:

Interim Records Rehabilitation and Preliminary Design of the Land Information System

Strategy for Securing Land Records since November 2006

Interim Training of Land Registrars and Records Officers started in Kampala as part of Mailo and Leasehold Registry decongestion exercises in 2007

Standardization in the collection and processing of land information; Speed up the processes of first registration of title; Decrease the cost and space required for storing land records; Prevent unnecessary duplication; enhance security of records; Simplify the preparation of "disaster" copies of registers; Facilitate accesses to land-related data and improve their distribution;

SORTING AND REORGANIZATION

Interim records rehabilitation and basic computerization

Archival preservation

Impact of rehabilitation on service delivery(2007-2008 monthly average)Item Type of Transaction With

RehabilitationAverage Time

required to complete

Av. Time required

before Rehab.

1. New title Certificates 1,237 1 day 3 weeks

2. Land Transfers 1,368.5 1 day 3 months

3. Mortgage of Land 356 1-3 days 2-3 months

4. Mutations / Subdivisions 467 2-3 days 1 year

5. Caveats ( Withdrawn) 75 ( 28) 1 day /1 day 2-3 days

6. Probate / Administration 84 1 week Sometimes1 month

7. All Other transactions 47.5 1-3 days

Land transactions recorded 1999 – 2008. Kampala Leasehold and Mailo Registry average 4,500 transactions /month since 2006.

-5,000

10,00015,000

20,00025,000

30,00035,000

40,00045,000

50,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Num

ber o

f Tra

nsac

tions

Lease Mailo

Design and Development -Uganda Land Information System Multi-phased activity focusing on Information for land administration;

i.e. information on land rights, land use and land valuation. Phase I: Preliminary Design of the Land Information System

Strategy for Securing of Land Records completed October, 2007

Phase II: Detailed Design, Installation and Pilot Implementation to start June, 2010 - 2012

program will train and pilot LIS in 6 Districts with the highest volume of land transactions over two years.

Phase III: LIS Roll-out and Cadastral Information Decentralization to include 8-16 more districts over 3 - 7 years (to 2018).

Land Information System – Cadastral Layer

1

Converting RegistrationDocuments and CadastralMaps, Data Integration

2

DetailedSystemDesign

3

Establishment of NationalLand Information Centre

4

UpgradeWorking

Environment

5

Initial HumanResource

Training &Development

6

Estabishmentof LIS inselected

District LandOffi ces

8

Training of DLOpersonnel

7

PopulateLocal

Database &Archives

9

UpgradeSystemTasks to be Repeated

for Each District

Improved Internet andCommunication

Infrastructure available

Appointed People

Allocated Localities

Land Information System Project Structure

OperationalSystem

(Registrationand Cadastre)

ProjectStart

Prel

imin

ary

Des

ign

of a

La n

d In

form

atio

n Sy

stem

Local access to reliable land information:Cadastral Information Branch Centers

Expected LIS and Benefits

Standardization in the collection and processing of land information;

Speed up first registration of customary land holdings; Decrease the cost and space required for storing land records; Prevent unnecessary duplication; enhance security of records; Simplify the preparation of "disaster" copies of registers; Facilitate accesses to land-related data and improve their

distribution;

Pilot Systematic Demarcation A method of identifying, ascertaining, and recording of the

existing land rights in the given administrative area

The method is systematic – leaves no gaps (everybody’s land is demarcated)

Development of cost effective methodology, sensitization and community participation techniques. Tested Oct, 2006- June 2007.

Full scale pilots by Private sector firms to start in July 2009. Expected Output: Mass adjudication with legal aid for conflict

resolution, Demarcation, titling and registration of customary land rights.

Revision & Harmonization of Land Laws Contract to a local consulting Law Firm started July 3, 2007 for

10 months.

Full scale review of all land related laws - currently on-going Process timed to benefit from the Land Policy reforms

Purpose:1. Revise and harmonize existing laws (including the Survey Act) with

the new Land Act and other Legislative Framework2. Draft new laws and regulations for LIS, Estate Agents, Government

Land and Archiving of Land Records3. Conduct public/stakeholder dialogue/consultation and workshops

(target groups and national).

Reopening the School of Surveying

Rehabilitation of 2 dormitories by Min. of Education completed in June 2006

Construction of new 3 Classroom Block is due to be completed in April, 2009

New modern survey and land management curriculum development, accreditation and business plan completed November, 2007

PSCP-II funding for capacity building, rehabilitation and retooling of the school is designed to support a modern problem-based Curriculum and Strategic Business Plan

148 students (52 Surveying, 20 Cartography, 40 Land Administration, 26 Physical Planning) admitted since October 2006.

Established 1910; Abandoned in 1995

Survey School refurbished and reopened in 2006

Public information messages

Public education posters

Expected long term benefits:1. Ministry of Lands, Housing and Urban Dev.

A reduction in the time required to register, collect and compile land information, and to search the land registry for property transactions.

An improvement in the quality and consistency of land information available to support public and private investment decisions and planning functions.

A reliable access to property information, efficient storage and maintenance of land information at a lower cost for the land sector.

A faster and fully decentralized delivery of primary and secondary land services to the public.

Expected impact and land access:2. Private investors and developers

An enabling law regulating real estate agents which will formalize and institutionalize the role of such agencies in accessing and managing land and real property information in support of Uganda’s development;

An increase confidence in the real estate agents and mortgage finance organizations, private developers, brokers, etc.;

Clearly enhanced role for brokers, agents and property insurance companies and surveying and land management professionals as service providers in the land market.

Expected impacts:3. Banking and Financial Sector

Improved access and ability to utilize the LIS to verify property information for handling mortgages, loans, credits, etc.;

Better collateral security and efficiency in completing real estate transactions;

Improved working relationship with the Land Registry, Banks and other financial intermediaries operating in the land market.

Expected impacts:4. Municipal and District Councils

Physical planning process and land use zoning requirements can be easily verified and enforced.

Spatial data for managing local land developments integrated with socio economic data to inform local planning and development schemes.

The creation of a fiscal cadastre containing valuation and property tax information, and other fees and taxes to enable equitable and efficient administration of taxes without duplication of data capture.

The process from planning to property formation will be accelerated.

Overall Benefits of Improving Uganda’s Land Access: To Be More Responsive to the needs of citizens and business

clients Increase data access and transparency, and to eliminate

fraudulent practices Introduce new land administration technologies Easy electronic exchange of data and Information Efficiency benefits include:

Maximizing use of land asset as collateral for development, Lower transaction costs by avoiding duplication, fraud and illegal

dealings, Lower investment risk and better public/private sector decision making Better custodianship of records Equitable and inclusive access to land information for all

Remaining Challenges:

Existing data is incomplete and not easily accessible, Not up-to-date and lack documentation on their accuracy and reliability

Fear of what lies in the future: Low leadership and staff support for land administration reforms, Fear of conversion to full computerization etc. - at cross-roads.

Staff capacity limitations and inadequate technical skills Resistance to changes that support transparent service delivery.

Thank you.