Sustaining land registration benefits by addressing the challenges of reversion to informality in Rwanda

Although benefits from land registration are well documented conceptually, the empirical literature largely focused on first-time registration rather than the recording of subsequent transactions needed to ensure accuracy of the registry and expand such benefits via interoperability and full use of digital technology by private and public sector. While very active land markets did not increase inequality and urban informality remains low, combining administrative and survey data for Rwanda suggests that 5 years after completing first-time land registration, 87% of rural transactions remain informal. Affected groups, especially women and the poor, may face higher likelihood of conflict and diminished access to digital services using land data. Respondents are aware of the need to register transactions and, on average, they are willing to pay about 2% of land value to do so. Reforms to increase compliance by reducing rural fees to affordable levels (including a waiver for the poor) would be revenue-neutral but greatly enhance social welfare.

Automated summary

While the benefits of land registration have been well-documented conceptually, empirical studies show that 87% of rural transactions in Rwanda remain informal 5 years after completing first-time land registration. Affected groups, especially women and the poor, may face higher risks and reduced access to digital services.