UNCDF and UN-Habitat presented a common front at the World Urban Forum 11th edition in Katowice by introducing their fused-offering,the SDG Cities Global Initiative to help cities reach their unmet financing needs for sustainable development and the newly launched Cities Investment Facility.

UN-Habitat – the UN agency for cites, and UN Capital Development Fund (UNCDF) – the UN’s hub for sub-national finance, have joined forces through the SDG Cities Global Initiative to help cities reach their unmet financing needs for sustainable development.

This initiative was presented for the 11th edition of the World Urban Forum, with this fused offering , cities will be given access to advice, resources and technical assistance to strengthen local revenue, improve public financial management, improve creditworthiness, enhance capital investment planning, apply for customized financing and implementation vehicles including municipal loans and equity investment, and access blended capital for SDG impact projects.

Examples of early results include USD 2 million revenue increase in the city of Hargeisa (Somaliland), USD 23 million water infrastructure bond in Tanga City (Tanzania) to support Tanga Urban Water Authority and Sanitation (UWASA) to issue a fixed rate bond for the construction of water infrastructure; working with Kampala Capital City Authority (Uganda) for a Green Bond; partnership with FirstRand (South Africa) and the Johannesburg stock exchange to securitize environmentally friendly projects from countries of the regions with listing on the Johannesburg Stock Exchange and cross-listing on the London Stock Exchange, and a pipeline of 55 projects with combined value of USD 1.7 billion being steered towards investment partners in the City Investment Facility, whose pipeline is evaluated by the Dual Key approach.

The World Urban Forum 11 was also the occasion for UNCDF and UN-Habitat to present the Cities Investment Initiative powered by the Dual-Key via a special booth dedicated to this important mechanism for cities.

UNCDF's also presented its new publication Local Government Finance is Development Finance and discussed how the current policy on development finance is not enough to transform our economies and meet the triple challenge of human wellbeing, planetary health, and urban growth.

Five essential reforms were discussed as needed to trigger the required capital flows to make this financial ecosystem work as empasized by the Malaga Coalition for a financial ecosystem that works for cities and local governments

• Increased fiscal transfers to local governments, as an effective instruments of a national development, particularly for the deployment of climate finance.
• Enhanced scope for local government taxation fees and asset management to boost local fiscal space
• Expanded domestic capital markets for long term debt, finance and the recycling of domestic savings through local government bonds.
• City friendly equity finance to provide stable and city friendly partnership
• Global guarantee funds for cities to defray defray sovereign liability on sub national finance

UNCDF also introduced the 2021 success stories report which is collecting stories from the field in 13 countries.

UNCDF was also present or organizing the following events that you will be able to stream on UN TV:
• SDG Cities Flagship Initiative Breakfast
• WUF11: How to optimize Own Source Revenues of local governments in developing countries
• Fostering SDGs localization and NUA Implementation through strengthening the capacities of national and local authorities in Urban Planning
• The Cities Investment Fair
• Cities Investment Facility Project Showcase and Unlocking Resources
• Financing the SDGs in Cities: UNCDF/UN-Habitat Fused Offering for Cities
• Investing in local solutions that promote social and economic inclusion in cities
• Accelerating the Localization of the SDGs for a Sustainable Urban Future
• Joining forces to unlock finance for the urban transformation

About UNCDF

The UN Capital Development Fund makes public and private finance work for the poor in the world’s 46 least developed countries (LDCs). UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through three channels: (1) inclusive digital economies, which connects individuals, households, and small businesses with financial eco-systems that catalyse participation in the local economy, and provide tools to climb out of poverty and manage financial lives; (2) local transformative finance, which capacitates localities through fiscal decentralisation, innovative municipal finance, and structured project finance to drive local economic expansion and sustainable development; and (3) investment finance, which provides catalytic financial structuring, de-risking, and capital deployment to drive SDG impact and domestic resource mobilisation.