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Why are there so many unfinished buildings in Africa?

economist.com

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Re: Why are there so many unfinished buildings in Africa?

#21

Post by InvaderFizz »

notdang wrote: post #16
neaanopri wrote: post #9

Earlier quoted context omitted.

I've seen and heard of this in Mexico and Latin America as well. A lot of US housing styles, such as saltbox and narrow townhouses, are also attempts to game older versions of the tax code

At least in recent Mexico it's not because of taxes. People don't have enough money to finish it and they leave it for later which usually never happens. Also they leave the possibility that next generation can add a new floor.

I live in Mexico and can vouch for this answer.

Especially the never happens part.

Re: Why are there so many unfinished buildings in Africa?

#22

Post by steve_adams_86 »

rudyfink wrote: post #6

I have no idea if it is true, but, in Egypt, my guide (who I will say was wonderfully knowledgeable on historic matters), stated that the reason many properties had rebar extending upwards (e.g., it looked like there were more stories to be added) was related to tax policy. I forget the full detail of her explanation, but there was some different kind of tax treatment if the building was "finished," so there were a n…

My wife has mentioned this is common in Serbia as well. The idea was that you might actually extend the building upwards eventually, but... Not sure if it happens as often as the initial practice is done.

Re: Why are there so many unfinished buildings in Africa?

#23

Post by crakenzak »

true_religion wrote: post #3
gpvos wrote: post #2

A few years ago I read an article that argued that one of the best ways to help many African countries would be to send accountants and help set up a cadastre.

It’s been tried but the political opposition is massive for various reasons.

I find this very interesting, why do you think there’s opposition to it? So property owners don’t get taxed on the real value of their assets?

Re: Why are there so many unfinished buildings in Africa?

#24

Post by phire »

neaanopri wrote: post #9
rudyfink wrote: post #6

I have no idea if it is true, but, in Egypt, my guide (who I will say was wonderfully knowledgeable on historic matters), stated that the reason many properties had rebar extending upwards (e.g., it looked like there were more stories to be added) was related to tax policy. I forget the full detail of her explanation, but there was some different kind of tax treatment if the building was "finished," so there were a n…

I've seen and heard of this in Mexico and Latin America as well. A lot of US housing styles, such as saltbox and narrow townhouses, are also attempts to game older versions of the tax code

Yeah, it was common when I visited Peru 20 years ago.

The tax code wasn't only reason for unfinished buildings. In poorer communities, which couldn't get access to loans, it was common to just buy supplies and do construction bit by bit as funds and time were available.

Homes might start off with as little as bamboo poles in corners and PVC sheets tied between them. I swear I saw some that didn't even have roofs. When they had enough funds, they would buy some bricks and just stack them as walls, throw some roofing iron on top or even PVC sheet as a roof

When they had enough bricks, they would buy cement and construct a solid brick wall. Then maybe some concrete for the floor.

Even in middle-class neighbourhoods, it was still common to construct floor-by-floor.

Re: Why are there so many unfinished buildings in Africa?

#25

Post by Causality1 »

I've heard quite extraordinary stories related to the "grabby kin" problem. Entirely hearsay, but at the same time too common. Most of them keep to a similar theme, that is a combination of entitlement to resources held by your relatives and a lack of emphasis on long-term gains. Probably half of these stories involve someone just getting a small business off the ground and losing it because relatives think they're entitled to anything you own. The food stocks for their vendor cart are eaten by a relative, building supplies are taken to repair a relative's house, seed stock is raided to feed a relative's animals.

Re: Why are there so many unfinished buildings in Africa?

#26

Post by edoceo »

staticautomatic wrote: post #17
gpvos wrote: post #2

A few years ago I read an article that argued that one of the best ways to help many African countries would be to send accountants and help set up a cadastre.

In case anyone else doesn’t know the word cadastre: > a register of property showing the extent, value, and ownership of land for taxation.

England called theirs Domesday (Doomsday)

https://en.m.wikipedia.org/wiki/Domesday_Book

Re: Why are there so many unfinished buildings in Africa?

#27

Post by kqr »

gpvos wrote: post #2

A few years ago I read an article that argued that one of the best ways to help many African countries would be to send accountants and help set up a cadastre.

This article, coupled with the ideas in Lombard Street, makes it sound like the lack of deposit banking is another big problem.

Unfortunately, if it's cultural (you owe your relatives any spare liquid capital you have) then I don't know how to fix it.

Re: Why are there so many unfinished buildings in Africa?

#28

Post by eucryphia »

Causality1 wrote: post #25

I've heard quite extraordinary stories related to the "grabby kin" problem. Entirely hearsay, but at the same time too common. Most of them keep to a similar theme, that is a combination of entitlement to resources held by your relatives and a lack of emphasis on long-term gains. Probably half of these stories involve someone just getting a small business off the ground and losing it because relatives think they're e…

Basically UBI...

Re: Why are there so many unfinished buildings in Africa?

#29

Post by mushbino »

steve_adams_86 wrote: post #22
rudyfink wrote: post #6

I have no idea if it is true, but, in Egypt, my guide (who I will say was wonderfully knowledgeable on historic matters), stated that the reason many properties had rebar extending upwards (e.g., it looked like there were more stories to be added) was related to tax policy. I forget the full detail of her explanation, but there was some different kind of tax treatment if the building was "finished," so there were a n…

My wife has mentioned this is common in Serbia as well. The idea was that you might actually extend the building upwards eventually, but... Not sure if it happens as often as the initial practice is done.

I've traveled extensively through the Balkans and when people ask what it's like, one of the things I say is that everything is old, brand new, and under construction all at the same time.

Re: Why are there so many unfinished buildings in Africa?

#30

Post by blntechie »

rudyfink wrote: post #6

I have no idea if it is true, but, in Egypt, my guide (who I will say was wonderfully knowledgeable on historic matters), stated that the reason many properties had rebar extending upwards (e.g., it looked like there were more stories to be added) was related to tax policy. I forget the full detail of her explanation, but there was some different kind of tax treatment if the building was "finished," so there were a n…

In India, due to lack of space, many urban homes are more than one level and leaving the rebar open or partly covered helps to extend the home to another level when financially possible is the explanation I have often seen and heard.
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