133
At 1989 price levels, table 4.6 shows the recommendations of the Hammar report as to
appropriate annual ground rents for normal-sized house plots, varying according to location.
Table 4.6: Annual ground rents, residential plots, by location (in 1989 kwacha/plot)
|
Location |
Low cost |
Medium cost |
High cost |
All stands |
|
Lusaka |
625 |
8,000 |
54,000 | |
|
Kitwe |
250 |
2,000 |
10,000 | |
|
Chingola |
190 |
1,500 |
7,500 | |
|
Chililabombwe |
160 |
1,000 |
5,100 | |
|
Provincial towns |
1,340 | |||
|
Townships |
1,200 | |||
|
Small townships |
940 | |||
|
Centers |
540 |
Source: Hammar 1990, p. 8.
Comparing these 1989 figures with those of table 4.3, it is obvious that after inflation, the
rates charged starting in 1991 do not come close to the recommended levels in kwacha. With the
further inflation since 1991, it is no wonder that the Lands Department does not collect enough annual
ground rent to do much (chapter 2). The Hammar report suggests that ground rents, once brought up
to date, be adjusted annually by computer, to reflect price levels. The CPI would be used for
residential stands, but for agricultural lands it suggests that the price of maize would also be suitable
(Hammar 1990, p. 9).
3. Implementation: rural areas
It is proposed in the study that the expected gross margins for farmland, in kwacha per
hectare, be estimated on the basis of attributes representing the capability of the land (estimated as the
percent of the holding that is arable), the influence of agroecological zone, location with respect to
markets, and available infrastructure (table 4.7). Each factor is assigned a set of brackets; for instance,
land class is estimated on the basis of the percent arable: 81 percent or more, 41-80 percent, 20-40
percent, or under 20 percent. Market distance is estimated as 1-10 km, 11-30 km, 31-40 km, or over
40 km. Infrastructure is estimated as "best," "fairly good," or "very bad." The study then classifies
agricultural land, at the level of regional plans, on the basis of these four factors. The result, based
on 1989 price levels, ranges from gross margins of 200 to 3,000 kwacha per hectare. At 20 percent
for the state acting as landlord, the annual rents would have ranged from about K40 to about K750
per hectare per year.