The Addis Ababa Action Agenda (AAAA), adopted at the Third International Conference on Financing for Development in July 2015, recognizes that “expenditures and investments in sustainable development are being devolved to the sub-national level, which often lack adequate technical and technological capacity, financing and support” (para 34) and calls for greater “international cooperation to strengthen capacities of municipalities and other local authorities” (Ibid). The commitment in the AAAA to strengthen subnational finance is particularly relevant in the context of Goal 11 of the 2030 Agenda for Sustainable Development which sets out to “make cities and human settlements inclusive, safe resilient and sustainable”.
The side event is part of a broader effort to link the AAAA with the HABITAT III process and its goal to reinvigorate the global commitment to sustainable urbanization. The objective is to place more emphasis on the financing needs of local authorities in the implementation of the 2030 Agenda for Sustainable Development, especially in the context of least developed countries (LDCs). Despite the recognition of the need to empower local authorities to finance their local development objectives, the ability of municipal governments to provide essential services, let alone to make long-term investments, is often constrained. As a result, mobilizing both public and private resources to finance investments and improve services at the municipal level is one of the most challenging aspects of local development, especially if the goal is to tap resources on market-like conditions in a sustainable manner. The critical challenges for greater capital investment are bringing borrowers and lenders together in a sustainable market relationship, and managing the risks inherent in this type of financing.
Speakers will present short introductory statements which will be followed by an interactive discussion on how municipal finance in LDCs can be strengthened. Interpretation services (French – English, Spanish – English) will be provided.
Mr. Vito Intini, Municipal Investment Finance Programme Manager, UNCDF
Mr. Marco Kamiya, Coordinator (a.i.) Urban Economy and Finance Branch; Leader, Urban Economy and
Municipal Finance Unit, UN-HABITAT
Mr. Syed Hasinur Rahman, Managing Director, Bangladesh Municipal Development Fund, Bangladesh
Mr. Philippe Camille Akoa, Director of the Special Council Support Fund for Mutual Assistance (FEICOM) and
President of the Network of African Finance Institutions for Local Authorities (RIAFCO), Cameroon
Mr. Malick Elhadji Diop, President of the Economic and Financial Committee of the Council of Local
Governments, West African Economic and Monetary Union (UEMOA), Senegal
Side Event HABITAT III Thematic Meeting: Financing Urban Development Tuesday,
8 March 2016, 5.30 – 7.00 pm
Centro Cultural Universitario Tlatelolco / 19th floor, Hall 4