Land and Property Rights

  • 135
    legal and regulatory reforms adopted
  • 399
    land administration offices established or upgraded
  • 325,920
    land rights formalized
  • 365,074
    parcels corrected or incorporated in land system

As of Dec 10, 2024

Land is fundamental to investment and economic growth. For this reason, MCC supports partner country investments that help secure and protect land and property rights, enable both rural and urban land to be more productive and better managed, and make land markets and other land-dependent markets function better. These projects empower the poor, strengthen the investment climate, and contribute to job and wealth creation. As a result, successful land projects can have deep, systemic, and long-lasting impact on economic growth and poverty reduction.

Why Does Land Matter to Poverty Reduction and Economic Growth?

Land and land markets play a central role in every economy. They are fundamental to household wealth and incomes; to the productivity of firms engaged in manufacturing, agriculture, or services; and they impact the availability and costs of essential human needs such as food, transportation, water, energy, and housing. The income and productivity of individuals, households, and firms depends on how well their own and others’ land rights and access are secured and protected, how confident they are that they will reap the benefits of their land improvements and investments, how easy it is to access or transfer land through sales or rental, and how well broader land use regulations promote efficient and compatible land uses.

Individual, firm-level, and public land uses are also part of larger land markets, which become distorted when they are not supported by governments through effective policies, laws, regulations, institutions, and incentives. These distortions can result in extra costs, inefficiencies, and inequities appearing in a variety of other sectors – including agriculture, transport, water, power - that can negatively impact growth, worsen poverty, undermine access to goods and services, and aggravate social exclusion.

In many developing countries, the lack of secure land rights can arise from an ongoing transition from traditional to modern market economies. These changes can pose challenges to land uses only secured by traditional, undocumented rights, and aggravate pressures on land supply and scarcity. With formal systems often not fully functional and traditional systems no longer functioning as before, existing and new land users face a higher risk of conflict, which yields insecurity and can further dampen productivity and investment. Climate changes can also contribute to land pressures, which similarly can escalate social tensions and conflict.

When Does Land Appear in MCC Work?

MCC’s programs are designed to reduce poverty and promote economic growth, and land may be an aspect of these programs or their supporting analysis in several ways:

Stand-alone land projects: In these cases, land is identified as a major limiting factor or “binding constraint” to a country’s economic growth. If partner governments and MCC agree to address the land constraint, stand-alone projects typically address topics such as land administration improvement, expansion of land access or allocation, formalization of land rights, improvement of land tenure security, or expansion of land planning and management. These projects can include rural, urban, or industrial areas.

Land as a necessary complement to a project in another sector: In these cases, accompanying land activities are added to a non-land project to ensure that land problems don’t limit the project’s impact and sustainability. A primary example is in MCC’s irrigation projects, where transparent, participatory, and fair land allocation processes are vital to achieving the expected agricultural productivity, farm income, and social impact results of MCC’s investments.

Land as a dimension of MCC’s environmental and social performance standards: MCC’s adherence to the IFC Performance Standards means that land – particularly land acquisition and resettlement – can play a potentially decisive role in the sound implementation of projects in other sectors. While MCC’s environmental and social practice leads all matters related to the Performance Standards, a land and property rights perspective can be useful in accomplishing key requirements.

Land as a root cause of a constraint or problem in another sector: Land and land market dysfunctions and inefficiencies can contribute to constraints or problems in other sectors such as transport, water or power, and can influence performance of industrial and logistics sectors. For example, urban planning, property rights, or land management challenges could contribute to high costs of water supply or to high transport costs for people and goods.

Land as the driver of economic benefits in another sector: Sometimes quantification of benefits to investments in other sectors hinges on changes in land market activity – particularly increases in land sales, leasing values, or leasing incidence that unlock value in land. For example, in both Tanzania and Senegal II, land value increases were the primary economic benefit calculated for certain power sector investments.

What Principles Drive Our Land Project Work?

Where MCC invests in land, our work varies depending on the country and issues, but our collaboration with all partner governments centers on the following key principles:

  • Policy and institutional reform: Resolution of land-related problems often requires meaningful reform. This usually focuses on improving land laws, regulations and procedures, reorienting land institutions to better serve public needs, achieving balance between land governance policies and the capacity to apply them, supporting a stable investment climate, and ensuring efficient land market functioning. MCC supports partner countries to achieve reform that might not be possible without donor resources.
  • Strong legal rights and access to land for women: Strong and enforced legal rights are a foundation for women’s economic empowerment. We work to understand with country partners to understand and reduce the barriers that current statutory and customary regimes and cultural norms pose for women’s equal access to land, land rights and land governance participation. We pay specific attention to ways women obtain rights to land, independently as well as through inheritance and formal and informal marriage. We also identify the implications for the strengthening or weakening of those rights because of potential MCC investments.
  • Mobilize MCC funds smartly: We will ensure that land project implementation welcomes innovation in procurement and payment, and where applicable will explore tools that can boost project performance such as results-based financing (RBF) approaches and public-private partnerships (PPPs) in collaboration with other MCC teams.
  • Appropriate technology: Our land investments promote use of the most appropriate technology to solve specific problems. To ensure long-term impact and sustainability, we ensure our investments put countries on the path to valuing new technology more broadly while building both the commitment and capacity to sustain these investments. Within this process, we pay close attention to the alignment of partner country legal and procedural standards for technology tools and their alignment with market developments and cost-efficiency.
  • Flexible, citizen-oriented tenure options: Where we focus on localized land tenure security operations, we seek to secure commitments to flexible approaches. This includes development of uncomplicated and low-cost titling instruments; using easy, low-cost mapping tools, and broadening the universe of stakeholders who can meet partner government standards for information gathering and management.
  • Demand and private sector engagement: We support interventions that respond to existing demand of citizens or the private sector for land and land administration services, or have the ability to generate demand. We will advocate for the role of the private sector in delivery of land-related services, recognizing the market as a force for technology change to increase citizen orientation and reduce the cost and complexity of land administration services.
  • Challenges of planning and land markets, both rural and urban We build understanding of the reach and limits of land use planning and urban planning investments without strong property rights systems, incentives, regulation and enforcement, and effective frameworks for inter-institutional decision making on public investment, such as infrastructure. We work to ensure understanding of the role of land markets in both enabling opportunity and underpinning exclusion.

What Do MCC Land Projects Do?

Since our first compact in 2005, MCC’s partner countries have used land and property rights funding to:

  • Design and implement national policies and strategies to manage land more productively;
  • Develop new land laws, regulations and procedures, or update and improve existing ones;
  • Formalize land rights for landholders, including outreach and training so landholders are fully empowered in their rights;
  • Form new land administration institutions or strengthen and streamline the operations of existing institutions;
  • Improve access to land for investors and private individuals;
  • Decentralize land tenure services to local levels;
  • Launch new instruments for recording land rights;
  • Identify and map boundaries of communities and other jurisdictions;
  • Land use planning to optimize uses of land and access to land resources;
  • Develop industrial land that better meets the needs of manufacturing firms;
  • Create or upgrade land information systems;
  • Pilot improved land dispute resolution processes.

Beyond these types of program investments, MCC also explores critical emerging themes that may be relevant for a given country program, such as AI and machine learning; property taxation and other land-based revenue; community land, forest land, and pasture and landscape management; sector trends in systematic rights formalization operations; land fragmentation and generational land challenges; information access as well as information privacy; climate, conflict and security; social media; youth engagement; and market demand for agricultural products from tenure-secure parcels.

Country Programs

To date, MCC has invested over $500 million in land programs across 17 of its 46 signed compacts and five threshold programs. New investments are in development.

Summary of MCC’s Land Projects—Compacts
Country Amount Time Frame
Benin $31.0 million October 2006–October 2011
Burkina Faso $58.3 million July 2009–July 2014
Cabo Verde $17.7 million November 2012–November 2017
Ghana $4.2 million February 2007–February 2012
Indonesia $43.1 million April 2013–April 2018
Lesotho $17.9 million September 2008–September 2013
Lesotho Health and Horticulture Compact $11 million March 2024–March 2029
Madagascar $29.6 million July 2005–August 2009
Malawi Transport and Land Compact $44.1 million May 2024–May 2029
Mali $0.9 million September 2007–August 2012
Mongolia $25.3 million September 2008–September 2013
Morocco $170.5 million June 2017–June 2022
Mozambique $39.5 million September 2008–September 2013
Namibia $23.1 million September 2009–September 2014
Nicaragua $7.2 million May 2006–May 2011
Niger $9.8 million January 2018-January 2023
Senegal $4.9 million September 2010–September 2015
Summary of MCC’s Land Projects—Threshold Programs
Country Amount Time Frame
Kenya Urban Mobility and Growth $13.9 million May 2024–May 2028
Liberia $7.1 million July 2010–December 2013
Solomon Islands $11.6 million January 2022–January 2026
Togo $8 million November 2020–November 2024
Zambia $3.6 million May 2006–February 2009

Active Programs

  • Kenya flag
    The Land Use Planning Project will increase the planning, organization, and control of the development of land within Nairobi City County. The MCC project includes four components that (i) support the county government’s efforts to introduce and implement a policy and regulatory framework to govern land use; (ii) develop and deploy a geographic information system (GIS) platform for land use regulation within the county; (iii) prepare detailed land use plans within the target area, and (iv) implement the detailed land use plans, with the aim of attracting private investment. The project focuses work on components (ii) and (iii) in the target area of Makadara and Embakasi West sub-counties of Nairobi, an area which is prime for new development that will drive economic growth, job creation, and residential revitalization.
  • Lesotho flag
    MCC’s Market Driven Irrigation Horticulture (MDIH) project in Lesotho seeks to increase rural incomes related to commercial horticulture, including for women, youth, and the rural poor, and to establish a sustainable and inclusive model of irrigation, water resource, and land management. The land-related interventions in the MDIH project are aimed at improving Lesotho’s Rural Land Registration System (RLRS) so that rural landholders can obtain registered land leases in an efficient and cost-effective manner, and that the RLRS and land adjudication systems are fully reflective of gender equity under the law, including new gender reforms. Within the MDIH irrigation scheme perimeters, the project will support landholders in securing documented land rights, with a particular focus on women and vulnerable groups. This will be accomplished through technical assistance and support to local government institutions to identify landholders, confirm land rights, conduct land use planning, support landholders to decide how they want to use irrigated land parcels, and issue registered leases for each irrigated parcel in the name of the landholders.
  • Malawi flag
    MCC’s Increased Land Productivity Project in Malawi will support improved land services, better functioning land markets, and increased investment in land through revenue-oriented investments to increase adequate funding of land institutions at national and city levels and support institutional change in the land sector. Revenue work at both levels equally focuses on the broader role of well-functioning property tax systems in incentivizing productive use of land.

  • Togo flag
    In the Solomon Islands, MCC is investing in the Accessing Land for Tourism Investment Facilitation Project which will help the country grow its tourism sector. The Project seeks to achieve this objective by building government capacity to identify investable land and facilitate investment in the sector. As part of the land activity, the Project will assist investors to reach agreement on occupation and use of land, known as “social license” in the Solomon Islands, with local communities that have historical interests in that land. Social license agreements are key to ensuring that an investor has secure tenure over the land, often in return for an agreement to share benefits from the tourism investment on that land. This work is the basis for an increased tourism investment in Solomon Islands, which is expected to deliver jobs to local communities, increased local purchases, and foreign exchange benefits.
  • Togo flag
    MCC’s threshold with Togo includes an $8 million Land Reform to Accelerate Agricultural Production Project that will support the establishment of a regulatory framework to implement the new Land Code. It will also field-test cost effective procedures and technologies for land formalization to provide Togolese farmers with the security necessary to make long-term investments in their land.

Closed Compacts and Threshold Programs