Providing Urban Infrastructure Using Land-Based Financing Mechanisms. A Collaboration Between State and Non-state Actors in Ghana

The rapid urbanization of cities in the Global South, and indeed Ghanaian cities has left many Municipalities grappling with a widening gap in infrastructure need. This is largely due to limited financial resources to expand infrastructure to keep pace with urban expansion. In this context, land-based financing has become topical among city managers in generating resources to provide the much-needed urban infrastructure. The paper examines how non-state actors such as parastatal land operators collaborate with state actors-local authorities to provide urban infrastructure using land-based financing mechanisms. The case study approach was used to study two parastatal land development companies-Tema Development Company and Ghana Airport Company. The paper finds that leasehold premium and infrastructure levy are instruments used for providing urban infrastructure. It further finds that the application of these instruments requires the management of complex factors and stakeholders; proper understanding of land market conditions; comprehensive property-monitoring systems; effective communication among fiscal and planning entities; and political resolve to realize the full potential of land-based financing.