15. What is value capture?

There are two main categories of instruments that governments can use to convert surplus land value into public value: fiscal tools such as taxes and fees aimed at generating additional revenue for municipalities; and regulatory instruments such as development charges and zoning incentives aimed at directing land use. In South Africa, value capture can provide additional resources to assist the State in improving service delivery, addressing poverty and ultimately achieving more equitable and sustainable cities. Additionally, these mechanisms can be used to control urban sprawl, reduce the perverse effects of land speculation, cope with growing informality in land markets and promote the redistribution of land. South African politicians and officials often try to ensure that the greatest value is derived from the sale or use of State-owned land, but the notion of value capture has been largely absent from our planning discourse to date.