The operation of urban land markets in developing countries is critical to building sustainable cities. Sub-Saharan Africa is experiencing rapid urbanisation, pressuring cities with limited institutional capacity. Challenges include inadequate provision of housing, a proliferation of slums and rising inequality. Many African countries suffer from weak institutions and governance as a legacy of their colonial history. This research aims to study whether urban planning regulation – often a colonial remnant – can worsen housing outcomes, reduce social inclusivity and increase inequality in Tanzanian cities.

Minimum plot-size restrictions are common in many African countries, but their effects are understudied. These restrictions may create inefficiencies as large plots are expensive and may remain unbuilt. This may exacerbate inequalities as large plots are unaffordable to the poor. The authors a) study how planned plot sizes affect the demand for plots in the Tanzanian government’s formal ‘20,000 Plots’ project; and b) contrast the private sector’s approach to providing formal plots to that of the government and study the implications.

The authors identify a big challenge to development: Many cities in sub-Saharan Africa face inadequate provision of housing, proliferation of slums and rising inequality. This impacts the lives of millions of people who are unable to fulfil their potential and their aspirations because they lack access to basic health, education and skills.

This research aims to promote evidence-based practices and enable the scaling of solutions by the private sector. Findings from this research could identify effective business solutions, impact policymakers, and ultimately lead to large-scale and enduring change.