Empowering Cities to Mobilize Domestic Capital: Enabling Framework and City Level Actions

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Day / Time Friday, June 23rd / 08:30 - 10:30

Event Description
Strengthening the link between domestic capital and city infrastructure needs - what can be done? This session focuses on opportunities for action by way of partnerships between cities, national governments and their development partners. From the cities' standpoint, identifying a set of agreed internal actions and demonstrating a clear revenue stream would provide greater voice when negotiating with higher levels of governments for greater devolution of power to match increased responsibilities. At the same time, national level policy actions are necessary to enable a new market for private capital to finance public infrastructure. Bringing together representatives from national governments, cities, lenders and development partners, this session aims at a better understanding of access to finance.

Session Language

English

Speakers

Prof. Gyan-Bouffour, Deputy Minister of Finance, Ghana

Mr. J. Ngobeni, CFO, City of Johannesburg, South Africa

Ms. S. Malathi, Commissioner Economics, Tamilnadu, India

Host Organization

Cities Alliance

Host Organization Description

The Cities Alliance is a global coalition of cities and their development partners committed to scaling up successful approaches to poverty reduction. The Alliance provides matching grants in support of: (a) City development strategies (CDS) which link the process by which local stakeholders define their vision for their city and its economic growth, environmental and poverty reduction objectives, with clear priorities for actions and investments; (b) Citywide and nationwide slum upgrading in accordance with the Allianceâ€Ts Cities Without Slums action plan, including promoting secure tenure, access to shelter finance and policies to help cities prevent the growth of new slums; and (c) Sustainable financing strategies for cities to attract the long-term capital investments needed for infrastructure, including improving accountability and demonstrating stable revenue streams to more effectively leverage domestic capital. Cities Alliance members are: Local authorities, represented by United Cities and Local Governments, Metropolis, Brazil, Canada, France, Germany, Italy, Japan, Netherlands, Nigeria, Norway, South Africa, Sweden, United Kingdom, United States of America, the Asian Development Bank, UNEP, UN-HABITAT and the World Bank.

Website

www.citiesalliance.org

www.acdi-cida.gc.ca

www.fcm.ca

www.sci.ic.gc.ca

www.odin.dep.no/ud/engelsk

 

Report

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Title of Event: Name of Organisation: Date and time of the session:	Empowering Cities to Mobilize Domestic Capital Cities Alliance 23 rd June, 0830-1030 am
Key Highlights Estimated no of participants: 80 Stakeholder group representation at the event : The event was a dialogue between practitioners from city and higher levels of government and financial institutions and development partners on the core issue of linking city financing needs with domestic capital What were the expected objectives: To improve understanding of the process required for cities to mobilize domestic capital for urban infrastructure investments What did the networking event achieve : The event highlighted the need for systemic interventions in situations of imperfect decentralization of responsibilities and powers to cities. In this context, the session identified actions needed at the city and provincial levels as well as on the supply side. The theme was underlined by case studies from practitioners representing each level of responsibility in the municipal financing system.
2. What were the core issues identified in your event as they relate to the theme and sub-themes of WUFIII? The core issue identified was the need for partnerships between cities, national governments and their development partners based on city strategies which are inclusive.
3. What were the main points raised by panellists and participants in relation to these different issues? What new ideas have been generated as a result of the discussion? City level: •  Articulated medium term city strategy •  transparent accounting and information disclosure •  Management continuity •  National Level •  Stable and rational transfer rules •  Legal framework for borrowing and repayment •  Enhanced administrative powers for cities
4. What process steps have been identified in your event that could help turn ideas into operational reality? The need to design country-level municipal finance frameworks which addresses demand and supply side bottlenecks assigning roles and responsibilities. This could be expected to provide stable revenue streams against which private capital can finance with confidence

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