LTC Research Paper Land Markets, Employment, and Resource Use in the Peri-Urban Green Zones of Maputo, Mozambique: A Case Study of Land Market Rigidities and Institutional Constraints to Economic Growth by Michael Roth, Steve Boucher, and Antonio Francisco University of Wisconsin-Madison 175 Science Hall 550 North Park Street Madison, WI 53706 http://www.ies.wisc.edu/ltc/ Research Paper LTC Research Paper 123, U.S. ISSN 0084-0815 originally published in October 1995 LAND MARKETS, EMPLOYMENT, AND RESOURCE USE IN THE PERI-URBAN GREEN ZONES OF MAPUTO, MOZAMBIQUE: A CASE STUDY OF LAND MARKET RIGIDITIES AND INSTITUTIONAL CONSTRAINTS TO ECONOMIC GROWTH by Michael Roth, Steve Boucher, and Antonio Francisco" * Michael Roth is associate research scientist, Land Tenure Center, University of Wisconsin-Madison. Steve Boucher is research assistant with the Land Tenure Center. Antonio Francisco was professor, Department of Economics, Eduardo Mondlane University. All views, interpretations, recommendations, and conclusions expressed in this publication are those of the authors and not necessarily those of the supporting or cooperating organizations. LTC Research Paper 123 Land Tenure Center University of Wisconsin-Madison October 1995 Copyright ° 1995 by Michael Roth. All rights reserved. Readers may make verbatim copies of this document for noncommercial purposes by any means, provided that this copyright notice appears on all such copies. TABLE OF CONTENTS Page List of tables vii Glossary of terms ix Executive summary Resumosumário 1. Introduction 1 1.1 Research project 2 1.2 Outline of paper 3 2. Land legislation, administration, and settlement 2.1 Land Policy and land legislation in Mozambique 2.1.1 Pre-independence land policy 2.1.2 Post-independence land policy 2.1.3 Urban land tenure 2.2 Maputo pen-urban green-zone settlement 2.2.1 Pre-independence period 2.2.2 Post-independence period (1975-1979) 2.2.3 New crises (1980-1987) 2.2.4 Green-zone settlement 2.3 Green-zone policies 2.3.1 Permanent green-zone areas 2.3.2 Provisional green zones 2.3.3 Zones of urban expansion 2.4 Producer typology 2.4.1 Cooperatives 2.4.2 Family sector 2.4.3 Private sector 2.4.4 Producer associations 2.5 Land registration 2.5.1 Colonial times 2.5.2 Agricultural or rural land 2.5.3 Peri-urban zone, Maputo 2.5.4 Registration problems, private landholders 2.5.5 Group registration 2.6 Conclusions 3. Research methodology 33 3.1 Peri-urban economies in Africa project 33 3.2 Pre-research visits 34 3.3 Research issues and objectives 35 3.3.1 Land market efficiency and distributional consequences 35 3.3.2 Registration costs and benefits 36 3.3.3 Migration and land sharing 37 3.3.4 Regional differentiation 37 3.4 Survey design 38 3.5 Sample design 41 3.5.1 District 4 41 3.5.2 District 6 42 3.5.3 Implications 43 3.6 Survey instrument and methods 43 3.6.1 Interview process 43 3.6.2 Survey instruments 44 3.6.3 Data entry 45 3.6.4 Research team 45 3.7 Implications and limitations 45 4. General household and plot characteristics 47 4.1 Household strata 47 4.2 Household demography and migration 49 4.3 Landholdings 51 4.4 Language skills 52 4.5 Political status and corporate membership 52 4.6 Decision-making authority 56 4.7 Assets and physical infrastructure 58 4.8 Economic activity 60 4.8.1 Formal-sector wage activities 60 4.8.2 Self-employment activities 61 4.9 Household income 63 4.9.1 Nonfarm income 63 4.9.2 Farm income and expenditures 63 4.9.3 Total income 65 4.10 Conclusions 66 5. Land settlement and land markets 69 5.1 Settlement and land acquisition 69 5.1.1 Settlement 69 5.1.2 Mode of acquisition 72 5.1.3 Alienated land 74 5.1.4 Land claims beyond the peri-urban zone 76 5.2 Land market processes 76 5.2.1 Land buyers and sellers 76 iv 5.2.2 Land administration 82 5.2.3 Land prices 83 5.3 Management rights and land rights 85 5.4 Land access 88 5.5 Land disputes and conflicts 89 5.6 Land registration 91 5.7 Credit access 96 5.8 Conclusions 97 6. Land price determination 101 6.1 Theoretical model 101 6.2 Empirical estimation 103 6.3 Determinants of tenure status 107 6.4 Land price regressions 107 6.4.1 Reservation price regressions 111 6.4.2 Offer price regressions 111 6.4.3 Price difference regressions 112 6.5 Summary 114 Annex A Sampling frame for peri-urban baseline survey 117 References 121 v LIST OF FIGURES Figure 2.1 Administrative map of urban and peri-urban districts and bairros of Maputo 12 Figure 2.2 Land-use map showing peri-urban green zones (agricultural gardens) of Maputo 13 Figure 2.3 Proposed restructuring, cooperatives in the Maputo peri-urban zone 20 Figure 3.1 Peri-urban green-zones survey, theoretical research design 39 Figure 3.2 Peri-urban green-zones survey, actual household sampling frame 40 Figure 3.3 Peri-urban green-zones survey, actual plot-level sampling frame 41 Figure Al Schematic diagram of peri-urban sampling frame 120 LIST OF BOXES Box 2.1 Pressures of urbanization: An environment conducive to land disputes 15 LIST OF TABLES Table 2.1 Area of green zones, Maputo, 1985 17 Table 2.2 Number of producer associations in Maputo by district 23 Table 4.1 Number of sample households by district of primary residence, 1991 peri-urban survey, Maputo 48 Table 4.2 Mean household-level demographic characteristics by sample strata, 1991 peri-urban survey, Maputo 50 Table 4.3 Language skills of sample households, 1991 peri-urban survey, Maputo 53 Table 4.4 Participation of sample households in cooperatives and producer associations, 1991 peri-urban survey, Maputo 55 Table 4.5 Decision-making authority of sample households, 1991 peri-urban survey, Maputo 57 Table 4.6 Assets and physical infrastructure of sample households, 1991 peri-urban survey, Maputo 59 Table 4.7 Average monthly formal-sector wages of sample households, 1991 peri-urban survey, Maputo 61 Table 4.8 Average monthly income, principal self-employment activity of sample households, 1991 peri-urban survey, Maputo 62 Table 4.9 Farm and nonfarm income and expenses of sample households, 1991 peri-urban survey, Maputo 64 vii Table 5.1 Migration history of sample households and plot-level mode of land acquisition, 1991 peri-urban survey, Maputou 70 Table 5.2 Mode by which sample households acquired land plots by year of acquisition, 1991 peri-urban survey, Maputo 73 Table 5.3 Plot histories of land alienated from sample households, 1991 peri-urban survey, Maputo 75 Table 5.4 Landholdings of sample households outside urban and peri-urban areas of Maputo, 1991 peri-urban survey 77 Table 5.5 Land prices, 1991 peri-urban survey, Maputo 84 Table 5.6 Family relationship ofmachamba managers and land-rights perceptions, 1991 peri- urban survey, Maputo 86 Table 5.7 Land access of sample households, 1991 peri-urban survey, Maputo 89 Table 5.8 Perceptions held by sample households about land disputes, 1991 peri-urban survey, Maputo 90 Table 5.9 Land conflicts experienced by sample households, 1991 peri-urban survey, Maputo 92 Table 5.10 Perception of registration benefits by sample households, 1991 peri-urban survey, Maputo 93 Table 5.11 Registration procedures and constraints, 1991 peri-urban survey, Maputo 95 Table 5.12 Credit access of sample households, 1991 peri-urban survey, Maputo 98 Table 6.1 Descriptive statistics, hypothetical land-price regressions, 1991 peri-urban survey, Maputo 104 Table 6.2 Percentage of various rights held by a priori selection of designated right, 1991 peri-urban survey, Maputo 106 Table 6.3 Correlation between plot- and household-level characteristics and tenure status, 1991 peri-urban survey, Maputo 108 Table 6.4 Land-price regressions, hypothetical reservation price, 1991 peri-urban survey, Maputo 109 Table 6.5 Land-price regressions, hypothetical offer price, 1991 peri-urban survey, Maputo 110 Table 6.6 Land price regressions, hypothetical transactions costs or price difference, 1991 peri-urban survey, Maputo 113 Table Al Residential characteristics of grid survey design 119 Table A2 Target population and sampling frame, Phase 1 of the household baseline survey 120 GLOSSARY OF TERMS APIE government agency in charge of renting residential properties nationalized at independence Administrador do Distrito (do Posto) District Administrator, the highest authority at the district level. Maputo is divided into 8 adminis- trative districts, each having its own district adminis- trator. associações de produtores peasant producer associations Banco Popular de Desenvolvimento People's Development Bank bairro Neighborhood, the geographic/political division below the district level. Each of the 8 urban districts in Maputo has over 10 separate bairros. Each bairro, in turn, may be subdivided into as many as 70 quarteirões or blocks. câmara municipal pre-independence term for municipality Crédito Caixa de one of the now-defunct financial lending institutions agrárias casa Office housing the extension agents of the Gabinete das Zonas Verdes. There are 4 casas agrárias, one in each of districts 4-7 of Maputo, to provide extension services at the district level and also to sell agricultural inputs. Casas agrárias are found outside of Maputo as well, but these are administered by the Ministry of Agriculture. chefe do quarteirao Political leader responsible for a single block subdi- vision within a bairro. His or her immediate super- visor is the grupo dinamizador.