Chapter 4:
Land Valuation and Taxation
by
John Strasma, Sonny P. Mulenga, David Musona, and D.
Siansumo1. Introduction
There has been a land market in Zambia for centuries, just as there has been in every country
in the world. Land and the right to use it in specific ways and for specific times are exchanged in
many ways, each reflecting custom, local conditions, expected demand for what can be produced with
land, and power relationships. In most societies, people get access to land on which to build or to
farm in various ways. Some involve a high initial or threshold cost and little or no recurring cost. An
example would be to buy a house with freehold title in an area that does not have taxes or rates. Other
access to land may have a very low initial or threshold cost but relatively high periodic costs if
continued access is desired. In some countries, almost everyone knows from experience and
observation whether, where, and on what terms, to obtain land on which to live, work, or both. In
other countries, people may be familiar with only one or two ways in which they could obtain access
to land. Even in countries that declare the private sale or rental of land illegal, land or housing can
usually be obtained in exchange for something.
In customary land tenure areas, access may require the consent of a headman or chief, which
is often obtained more easily if one is a relative of families already there. In areas of former European
settlement, the market is often more visible, and access available to persons with enough money,
regardless of family or other personal characteristics. Even in areas in which the government forbids
the private sale or rental of land and housing, market processes work—though with limitations and in
ways that not everyone can utilize. Access to housing is sometimes part of an employment contract.
Access to land or housing may be bestowed as a favor in exchange for support of a politician or party,
or as a reward for superior performance in sports or other activities. Where functionaries decide who
gets access to land or housing, access to better land or housing may require payment of a bribe in
money, scarce goods, or services.
Much of the genius of modern developed economies is that their societies offer a high degree
of personal liberty. They make it possible for almost everyone to choose among several ways in which
they could get the use of various kinds of land, in different places, in varying amounts according to
their own means and productivity. These societies have prospered largely because their land markets
meet five standards of justice and efficiency:
(1) Everyone, not just a few powerful "insiders," can get access to land at a reasonable initial and
recurring cost.
John Strasma is a professor in the Department of Agricultural Economics, University of Wisconsin-Madison; Sonny
Mulenga runs S.P. Mulenga Associates (PTY) Ltd, Land and Valuation Surveyors; David Musona is the Land Tenure
Center's resident associate project manager in Zambia; D. Siansumo1. is an official in the Zambian Ministry of Lands.