The challenge

Improving municipal finance is a first step to achieve sustainable development. Over the past few decades, countries have increasingly decentralized their political systems and devolved responsibilities for public service provision to subnational governments. Increased mandates of subnational governments are however, not always matched by adequate increases in financial resources from the central government to lower levels of governments. 


Since 2013, a total of
local authorities have been provided with technical assistance for improving their revenue generating capacity.
Municipal authorities have developed strategies for improving their revenue generation and management capacity.

“UN-Habitat helps us when we experience technical difficultis with the billing system. Since the implementation of these systems, there has been a remarkable growth in property tax revenues. In Berbera, the revenue collection system has tangible benefit for both local government and the local community, and has impacted the education sector directly.”

Mohamed Iman, Coordinator GIS Hargeisa, Somalia