Cities in sub-Saharan Africa are growing at an unprecedented rate due to internal migration and general population growth. Urban population growth brings with it many positive benefits, but in cash-constrained municipalities, this can be particularly problematic as the financial resources cannot keep pace with municipal infrastructure needs.
Today’s world is undergoing fundamental changes. On one hand, globalization is reaching a new level despite some ups and downs, emerging economies represented by China are growing rapidly and the global landscape has experienced and will continue to see more changes to come. On the other, technology innovation is striving to come up with breakthroughs; it has changed and will continue to reshape the forms and landscape of global economy.
This discussion paper brings together the Indian experience on municipal finance to flag emerging issues for wider consideration among urban sector stakeholders across the countries in line with New Urban Agenda (HABITAT III) and its emphasis on sustainability, self-sufficiency and vertical /horizontal balance in the municipal finance.
“Africa’s Cities: Opening Doors to the World” demonstrates how urban policy plays a central role in making Africa’s cities economically competitive
Increased demand for services and economic opportunities necessitates improvement of revenue generation. In this regard, Kiambu county government sought advisory and technical support from a range of stakeholders including UN-Habitat. In 2014, a joint county-UN Habitat revenue assessment was conducted. Findings of the assessment set forth the direction for subsequent technical support and a program for short and long term interventions.
The county government of Homa Bay sought specialized support for revenue enhancement and local economic development from UN-Habitat. UN-Habitat took on a role of a technical advisor and conducted a rapid financial assessment of the county in collaboration with local government officials of Homa Bay.