CREATING INCLUSIVE CITIES THROUGH THE SUCCESSFUL IMPLEMENTATION OF LAND VALUE CAPTURE IN SOUTH AFRICA

Abstract

South Africa continues to experience fiscal constraints and economic contraction as a major hindrance to deliver
infrastructure projects. Because the process is disintegrated, the aim of this paper is to recommend practical
guidelines using planning gain investment and land tax theories on ways to guide the implementation of land value
capture financing to fund infrastructure development by the South African local government to create inclusive cities.
The study was conducted using the qualitative approach where semi-structured interviews were conducted with the
aim to investigate the problems and challenges that deter the effective use of Land Value Capture (LVC) in South
Africa, as well as to investigate concrete proposals and legislative amendments that are required to circumvent the
current limitations that exist and emerge from the application of LVC. Interview data from local government experts
helped the study to draw practical guidelines on how LVC can be used in an effective manner in South Africa. The
relevance of this study lies on the premise that there is a dire need for the South African government to expedite
infrastructure development that were once curtailed by apartheid systems in order to anchor the imperatives of
inclusive cities as the economy grows and urbanisation ensues.