Compensation assessment practices in expropriation of customary land: Evidence from Malawi

Lucky Kabanga and Manya M. Mooya

Land Use Policy, 2023, vol. 134, issue C

Abstract: Expropriation of various properties including customary ones requires compensation for the resultant losses suffered. Such compensation is valued based on market value, which assumes exchangeable private property and existence of functioning property markets. This assumption obtains inadequate compensation for customary properties because they do not fundamentally meet these conditions. Thus, this study analyses applicability of compensation theories founded on private land to customary properties in Malawi through a qualitative case study approach. The findings demonstrate that Malawian compensation law is based on indemnity theory and hence market value, whose applicability to customary land suffers from inadequate laws and weak/non-existent property markets. Fundamentally, indemnity compensation is applicable to customary land but current compensation practices obtain inadequate compensation. This calls for other compensation assessment methods to address these issues. Thus, this paper presents the empirical findings of the study, which contributes to compensation theory, empirical literature and policy development.

Keywords: Compensation; Customary land rights; Indemnity compensation theory; Market value; Taker’s gain compensation theory (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:134:y:2023:i:c:s0264837723003976

DOI: 10.1016/j.landusepol.2023.106931

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