Resource information
This research examines land value capture (LVC) as a strategic tool to finance urban infrastructure and support durable solutions for Internally Displaced Persons (IDPs) in Bosaso, Puntland's largest urban
center and a key economic hub driven by its seaport, airport, and relative stability. The study, funded by the LAND-at-scale programme and commissioned by the Netherlands Enterpise Agency (RVO)
in cooperation with the Saameynta project and Bosaso Municipality; to address the city's unplanned urban growth and its associated infrastructure challenge has resulted in critical service gaps. Puntland
Government and Bosaso Municipality have enacted legislation to improve land governance and introduce LVC to recover the unearned land value increases resulting from public investments and
policy decisions.
Key findings include:
1. Limited Municipal Land Ownership: large portion of Land is privately owned, limiting the local government’s ability to implement sustainable urban strategies and land based finance initiatives.
2. Land Grabbing and Registration Issues: Since 1991, much of the land in Bosaso has been seized by land grabbers and remains unregistered, complicating urban planning and LVC implementation.
3. Outdated and Inequitable Taxation: The current property tax system uses simplistic area measurements that do not reflect actual land value, creating inequities, especially for lower-income
households.
4. Underutilization of own source revenue: Only 15 of Bossaso’s 28 authorized revenue sources are actively pursued, limiting funds for essential services and infrastructure.
5. Absence of a Defined Taxation Authority: The lack of a defined taxation authority, unclear tariffs, and intergovernmental resource struggles hamper effective land governance and revenue collection.
6. Challenges in Securing Durable Solutions for IDPs: 98% of land occupied by IDPs is privately owned, putting these communities at risk of eviction due to the absence of formal tenure agreements. Limited
infrastructure in resettlement areas, like Grible, further hinders durable solutions