5. VALUE CAPTURE INVOLVES ACTIVITIES THAT SOME MUNICIPALITIES ARE ALREADY CARRYING OUT, WHAT IS NEW ABOUT WHAT DAG IS PROPOSING?

While some municipalities are using regulatory and fiscal tools that can be used for value capture, they do not use this for the purpose of value capture. There is little recapturing of increased land values occurring in the country and even less redistribution despite South Africa’s lucrative land and property markets. DAG proposes that the State makes conscious market interventions using regulatory and fiscal tools to capture land value. Where this results in increased revenue collection DAG proposes that this be redistributed into pro-poor initiatives.