Funding and Transfers

Traceability

Traceability, a pre-requisite to set up the basis for a culture of transparency. Among the good practices garnered by the LDF, we can mention the valuing and traceability of the financial participation of the populations in the achievement of public investment.

Evaluation of the performance in the allocation of budgets

An original system of financial support, oriented on budgetary support to the municipalities. The originality of the F4F support system lies on the taking into account of the evaluation of performance in the attribution of financial allocations, the principle of budgetary support and the possibility to co-fund the investments with other partners that intervene in budgetary support.

Strengthen the means of the municipal institution

Globally, the elected representatives take care to have the municipal institution provide affordable and efficient services to the population. This awareness is notable but large efforts remain to be done as much from the point of view of the elected than the population themselves and the government to strengthen the means of the municipal institution.

Strengthen the territorial meshing of the decentralized financial systems and the banking network

The financial arrangement to set up the LDF faces a few constrains:

  1. An insufficient banking network which does not facilitates the liquidation of the payment mandates for the providers and suppliers;
  2. The weak human and material means of the devolved Treasury services, sometimes provoking some slowness in the treatment of the payment files;
  3. A lack of credible micro-finance structures in many municipalities, limiting the valuing of the support subsidies to the local economic initiatives on the LDF.

The fund issue remains in the lack of real national policies of micro-finance in these countries, which hinders the implementation of solvency strategies for the most vulnerable and the improvement of their access to financial services in their own environment.

Alignment of the LDF

An LDF aligned on national financial procedures. The alignment of the funding of the municipalities on the national public finance procedures has proven to be effective. It results in an improvement of the credibility of States and public treasury. In fact, the efficiency of the system lies on the quality of the human resources.

A funding system with leverage effect

The co-funding with leverage effect enables to develop a system to fund investments perfectly adapted to the local governments. The implementation of the co-funding system by the municipalities and the F4F projects demonstrate the possibility to mobilize and achieve the disbursements of the municipality and the State in a faster way in order to avoid the blocking of sites due to the impossibility of mobilizing the funds.

Promote local governance

In the absence of a durable strategy to pursue the capacity building of the new elected representatives, there is considerable concern that the quality of governance will deteriorate. This is why the formation and information actions targeted at the grassroots must be strengthened in order to create a breeding ground for communitarian leaders capable of appearing in the municipal councils.

Develop project ownership and local expertise

Local project ownership and the budgetary support principle make that all the market procurement and contracting procedures happen at the municipal level.

The development of local project ownership is done through the capacity building of the local elected representatives and the municipal staff relative to the competences of the municipal institution, local planning, market procurement, micro-projects development, the conduct of achievements, local governance, decentralization and municipal administration, the elaboration and execution of the municipal budget, the management of the civil status, archiving and administrative editorial, the gender aspect, etc.

The capacity building strategy is founded on the existing procedures in each country.

Stories from the Field