Real Estate developers bemoan cost of multiple licenses

Real Estate Analyst Reuben Chongo has observed […]

Real Estate Analyst Reuben Chongo has observed that the real estate sector is mauled by multiple licenses, which eventually impact the costs of projects. Speaking in an interview with the Zambian Business Times (ZBT), Chongo revealed that construction of properties is already costly and the licenses add more strain on the developers.

Some of the key licenses for developers include, the Zambia Environmental Management Agency (ZEMA) license for properties bigger than 2 hectares, local authorities known as councils and National Council for Construction (NCC) and many more.

 Chongo urged the government to reduce the cost of licenses to enable affordable and efficient business practice.

 “They should be considerate in lowering the fee and then create a one-stop shop, for instance, sector licensing, or maybe place every license under one institution; they should be integrated and centralized. It will be much easier and faster,” he added.

The cost attached to the development of real estate is what extends to the buying and leasing costs, with most buyers complaining, especially in urban areas like Lusaka. Chongo further revealed the daunting process involved when developing land.

“The licensing regime is twofold. When you are developing land, there are three pieces of acts that you need to know: the Lands Act, the Urban Planning Act, and the Surveyor’s Act.

 So in such cases you have to deal with the planning authority for subdivision. You have to call the planning authority, which is LCC.

It means that you have to subscribe a sum of K5,000, especially if you are developing about 20 plots, which is subject to Lusaka City Council planning authority.”

With the digital era taking stage the onus is on the authorities to expedite the process of reducing costs and merging certain licenses for the benefit of the developers and all stakeholders involved.

Article by Samuel Mutale