The United Nations Capital Development Fund (UNCDF) is honored to co-host the third High-Level Policy Dialogue of the Málaga Global Coalition for Municipal Finance on October 5-6, 2023 in Málaga, Spain. This conference organized with United Cities and Local Governments (UCLG) and the Global Fund for Cities Development (FMDV) brings together diverse leaders to take stock of progress on the Coalition’s five-point policy agenda for transforming municipal finance.

PLEASE REGISTER FOR THE CONFERENCE HERE

Hosted by the Ayuntamiento de Málaga, the upcoming Third Málaga Conference will bring together diverse leaders in local government finance, including mayors, regional governors, government ministers, development banks, capital market authorities and commercial banks to take stock of the progress towards the Málaga Coalition policy agenda.

Through dedicated roundtable discussions, the event will further unpack how the international financial environment and architecture can be reframed and better adapted for cities, local and regional governments and showcase concrete solutions illustrated by different high-impact cases. The Conference will also convene roundtables to discuss specific approaches, such as leveraging the cultural and creative sector for sustainable development, and to share findings of the third edition of the World Observatory on Subnational Government Finance and Investment (SNG-WOFI). In summary, the Third Conference of the Málaga Coalition aims to achieve the following objectives:

• Review the Málaga Coalition policy agenda and take stock of progress in each of the five building blocks since the first Málaga Conference;
• Showcase innovative approaches, mechanisms and instruments developed or implemented by Coalition members in line with the Málaga Coalition policy agenda;
• Understand risks and challenges and propose concrete solutions to accelerate progress;
• Define and advocate for the necessary policy reforms to drive towards a renewed financial ecosystem that works for local and regional governments;
• Provide a roadmap towards the Fourth Málaga Conference.

The agenda focuses on intergovernmental fiscal transfers, own-source revenues, domestic capital markets, city-friendly investment funds, and guarantee mechanisms. Dedicated sessions on October 5-6 will showcase innovative approaches across these areas and propose solutions to remaining bottlenecks.

The event comes at a critical moment, as cities require significant infrastructure investment to manage rapid urbanization and build resilience against crises like COVID-19 and climate change. However, traditional financing falls short of their needs.

The Málaga gathering will issue a Call to Action with policy recommendations to further localize finance and speed achievement of the Sustainable Development Goals. It represents an important milestone as we advance towards more just, sustainable, and resilient cities and communities globally.

Join us in Málaga or online on October 5-6. Register now to be part of the conversation as we drive progress on the municipal finance agenda.

Please find the agenda hereunder:

Registration
9.00-9.15am: Welcome remarks

• Hon. Mr. Francisco de la Torre, Mayor of Málaga, Spain
• Mr. Mourad Wahba, Officer-in-Charge, UNCDF
• Ms. Emilia Saiz, Secretary General, UCLG

9.15-9.25am: Setting the Scene for the Conference
Review of the Málaga Coalition policy agenda and introduction of the five roundtables andtwo special sessions, focusing on progress in the five building blocks of the Málaga policy agenda to further accelerate the achievements made in municipal finance since the first Málaga conference in 2018.

Progress to date since Málaga I:

• Mr. Carlos de Freitas, Executive Director, FMDV

Policy Agenda for Málaga III:

• Mr. David Jackson, Director, Local Transformative Finance Practice, UNCDF

9.25-9.30am: Group Photo

9.30-11.00am: Roundtable I – Intergovernmental Fiscal Transfers (IGFTs)
IGFTs from the central to subnational governments are the most important source of revenue for local and regional governments in all countries, including rich and poor countries at both urban and rural levels. Globally, IGFTs constitute more than half of total local government revenue, which illustrates
its significance for local and regional governments and the associated development implications. Well-designed IGFTs can build trust in government, and shift from vicious cycles of deteriorating local governance to virtuous ones of performance improvement. Since the first Málaga conference, there has
been strong progress in promoting the strategic use of IGFTs for development finance at the local level globally. This session—which is co-hosted by UNCDF, UCLG, FMDV and Local Public Sector Alliance—will illustrate these efforts and feature panelists who will share success stories.

Moderator: Prof. Paul Smoke, Professor of Public Finance and Planning, New York University Robert F. Wagner Graduate School of Public Service

Presentations (20 min):

• Mr. Jesper Steffensen, Principal Technical Adviser, Local Transformative Finance
• Practice, Local Climate Adaptive Living Facility (LoCAL), UNCDF
• Dr. Jamie Boex, Executive Director, Local Public Sector Alliance

Panelists (50 min):

• Dr. Jane Kiringai, Former Chair, Kenya Commission on Revenue Allocation
• Dr. Khimlal Devkota, Member of Parliament, Nepal
• Ing. Juan Cristobal Lloret, Prefect of the Azuay Province, representative of the Consortium of Provincial Governments of Ecuador, CONGOPE
• Hon. Mr. Oumar Ba, Mayor of Ndiob, Senegal, President of the WAEMU Council of Local Authorities, President of the Association of Mayors of Senegal (AMS)
• Hon. Ms. Sarah Dugbakie Pobee, Mayor of Ada East District Assembly, Ghana
• Ms. Sophie De Coninck, Global Facility Manager, LoCAL, UNCDF

Q&A and open discussion with the audience (20 min)

11.00am-11.15am: Coffee/Tea break

11.15am-12.45pm: Roundtable II – Own-Source Revenues (OSRs)

An essential element of local and regional government finance is own-source revenues, which consist of taxes and fees on which local governments have a base and/or rate-setting power. OSRs are strategically important for transformative infrastructure development because they often support the operation and maintenance of local assets, enhancing local governance and accountability, and create conditions for leveraging external finance for development. Effective local tax administration is key to closing the revenue potential gap, which for local governments in developing countries may reach fivefold of the actual revenue collection. It is estimated that the achievement of 92% of the SDGs is dependent on the availability of adequate infrastructure. However, insufficient OSRs constrain local governments fiscal space and their investment capacity. Furthermore, ensuring proper budget allocation for the financial, human, and material resources to manage assets over their lifespan is critical because it allows continued delivery of essential services for citizens, such as transport, water and sanitation, and solid waste management. However, in many local government contexts, old assets are often neglected, and new ones are built without putting in place an asset management framework for proper maintenance over time. Such underinvestment in maintenance of infrastructure is often a financing gap and it is estimated to cause up to 2% loss in gross domestic product (GDP).

Moderator: Dr. Dmitry Pozhidaev, Senior Technical Advisor, UNCDF

Presentation (15 min):

• Mr. Modeste Fatoing Mopa, Head of the TADAT Secretariat, Fiscal Affairs Department, International Monetary Fund (virtual)
• Ms. Nan Zhang, Programme Management Specialist, Local Transformative Finance, UNCDF
• Panelists (60 min):
• Dr. Margaret Nyakang’o, Controller of Budget, Kenya
• Mr. Yasin Sendaula, Assistant Commissioner for Urban Inspection, Ministry of Local Government, Uganda
• Mr. Michael Agyemang, Director of Planning, Kumasi, Ghana (virtual)
• Mr. Dario Runtic, Advisor, Association of Croatian Cities and Advisor to the Minister of Finance, Croatia
• Dr. Wilson Prichard, Associate Professor of Global Affairs and Political Science at the University of Toronto, Chair of the Local Government Revenue Initiative
• Mr. Lennart Fleck, Municipal Finance and Local Economic Development Officer, UN-Habitat

Q&A and open discussion with the audience (15 min)

3.45-4.45pm: Special Session I – Financing Culture, Inclusive and Gender Responsive Urban Services and Infrastructure

Moderator: Dr. Jenifer Bukokhe Wakhungu, Deputy Director (a,i), Local Transformative Finance Practice, UNCDF

Presentation (10 min):

• Ms. Samina Anwar, IncluCity Programme Manager, UNCDF
• Panelists (40 min):
• Hon. Ms. Rohey Malick Lowe, Mayor of Banjul, The Gambia (virtual)
• Ms. Liane Freire, CEO of Blend Group and Co-Founder of Ellaimpacta
• Mr. Dyfed Aubrey, Inter-Regional Advisor & SDG Cities Lead, UN-Habitat (virtual)
• Mr. Gordon Williams, Founder, Lalabela Alliance
• Ms. Tita Larasati, Chair of Bandung’s Creative Cities Forum and focal point of Bandung City of Design for UNESCO Creative Cities Network (virtual)

Q&A and open discussion with the audience (10 min)

4.45-5.00pm: Wrapping up

• Dr. Michal Mlynár, Deputy Executive Director, UN-Habitat
• Mr. Carlos de Freitas, Executive Director, FMDV

7.30-10.00pm: Gala Dinner at Trocadero Casa de Botes *Bus transfer from NH Hotel to the restaurant will depart at 7.00pm.

Day 2: October 6, 2023 (Friday) 8.30-9.00am:

Registration

9.00-9.30am: Welcome back remarks & reflections from day one

• Mr. David Jackson, Director, Local Transformative Finance Practice, UNCDF
• Ms. Emilia Saiz, Secretary General, UCLG

9.30-11.00am: Roundtable IV – City-Friendly Investment Funds

City-friendly investment funds increase the ability of local governments and other sub-sovereign entities to address key urbanization challenges, such as local infrastructure gaps, through sustainable sources of public and private financing. This type of solution can work for certain infrastructure investments with dedicated revenue streams, such as mass transit systems. Such funds open the local market for further investments by promoting policy and regulatory reforms, strengthening domestic capital markets for subnational finance, expanding international capital deployed to subnational finance, and building the capacity of local governments to access finance. In these investment funds, risk is mitigated by an investor owning the asset and managing it privately while producing the transformative outcome required. When these funds are designed and implemented through the “city-friendly” perspective, they can demonstrate the potential of municipal and local government finance to national regulatory authorities and international investors to deploy public and private capital for infrastructure needs of cities and local governments.

Moderator: Mr. Mohammad Abbadi, Senior Investment Manager, UNCDF

Presentation (10 min):

• Mr. Jean-François Habeau, Senior Advisor, FMDV

Panelists (60 min):

• Mr. Salim Bensmail, Senior Investment Director, Meridiam
• Ms. Eszter Mogyorosy, Head of Innovative Finance, Local Governments for Sustainability (ICLEI)
• Dr. François Yatta, Director of Programs, UCLG Africa
• Mr. Ben Kumumanya, Permanent Secretary, Ministry of Local Government, Uganda
• Ms. Priscilla Negreiros, Senior Manager, Cities Climate Finance Leadership Alliance, Climate Policy Initiative

Q&A and open discussion with the audience (20 min)

11.00-11.15am: Coffee/Tea Break

11.15am-12.45pm:Roundtable V – Guarantee Funds for Cities

Guarantees are a financial instrument to unlock public and private funding for local infrastructure by mitigating risks, increasing investor confidence in cities and local governments and bringing down the cost of capital for municipal borrowing. Concessional or publicly funded guarantees for subnational governments can significantly accelerate transformative investments at the local level. The COVID-19 pandemic has presented a new, unprecedented source of investor risk that is depressing business confidence to historic lows. According to the World Bank, global foreign direct investment fell by 42% in 2020, from $1.5 trillion in 2019 to an estimated $859 billion—the lowest level since the 1990s. Against the backdrop of the COVID-19 pandemic and declining investments, it is critical now more than ever to unlock private financing for developing economies by mobilizing a diverse set of instruments, including guarantees.

Moderator: Mr. Jaffer Machano, Former UNCDF Global Finance Advisor Keynote Remarks (10 min):

• Mr. Lars Gronvald, Head of Urban Development Section, Directorate General for International Partnerships (DG INTPA), European Commission Panelists (60 min):
• Mr. Edwin Syahruzad, President Director of PT Sarana Multi Infrastruktur (PT.SMI), Indonesia (virtual)
• Mr. Anders Berlin, Director of Least Developed Countries’ Investment Platform, UNCDF
• Mr. Nicolas Painvin, Head of International Public Finance, Fitch Ratings
• Mr. Tuukka Salminen, Executive Director and Deputy CEO, Municipal Guarantee Board, Finland
• Mr. Lars Gronvald, Head of Urban Development Section, Directorate General for International Partnerships (DG INTPA), European Commission
• Dr. Jane Kiringai, Former Chair, Kenya Commission on Revenue Allocation

Q&A and open discussion with the audience (20 min)

12.45-2:00pm: Lunch Break

2.00-3:30pm:Special Session II – Accountability, transparency and evidence-based policy making through financial data for improved local financial resilience

The World Observatory on Subnational Government Finance and Investment (SNG-WOFI) is a joint effort led by OECD and UCLG, and supported by numerous partners, including by UNCDF on the Least Developed Countries data. Its goal is to increase knowledge and promote dialogue on multi-level governance and subnational finance around the world, by collecting and analyzing standardized quantitative data and qualitative information. After the 2016 and 2019 editions, the SNG-WOFI has become the largest international knowledge repository on subnational government structure and finance ever produced. In 2022, the third edition was launched at the OECD headquarters in Paris, which includes data from 135 countries.

Moderator: Dr. Christel Alvergne, Senior Technical Advisor, UNCDF
Presentation (15 min):

Panelists (60 min):

• Mr. Elton Stafa, Regional Fiscal Decentralisation Expert, Network of Associations of Local Governments in South-East Europe (NALAS)
• Mr. Ousmane Sako, Director General of Local Authorities, Ministry of Territorial Administration and Decentralization, Guinea
• Ms. Elisa Muzzini, Senior Technical Advisor, Council of Europe Development Bank (CEB)
• Mr. Alexander A. Mejia, Director of Division for People and Social Inclusion, Head of CIFAL Global Network, UN Institute for Training and Research (UNITAR) (virtual)
• Mr. Nicolas Painvin, Head of International Public Finance, Fitch Ratings
• Prof. Paul Smoke, Professor of Public Finance and Planning, New York University Robert F. Wagner Graduate School of Public Service
• Hon. Mr. Oumar Ba, Mayor of Ndiob, Senegal, President of the WAEMU Council of Local Authorities, President of the Association of Mayors of Senegal (AMS)

Q&A and open discussion with the audience (15 min):

• Discussant: Mr. Kader Makhlouf, Special Advisor to the Secretary General, UCLG

3.30-3.45pm: Coffee/Tea Break

3.45-4.30pm: Closing Remarks & Looking Forward

• Ms. Emilia Saiz, Secretary General, UCLG
• Mr. David Jackson, Director, Local Transformative Finance Practice, UNCDF End of the Conference