29th September 2021 - The United Nations Capital Development Fund (UNCDF) conducted a knowledge sharing webinar to sensitise stakeholders from the public and private sector how municipal bonds can accelerate local economic development and alleviate the burden to finance projects at the local level. African cities and local authorities face significant challenges to address critical urban infrastructure and services due to lack of funding. Currently, the dependency on fiscal transfers from most central governments is approximately 90% of their budgets.
Tanzania’s increasing population and annual national budget deficits has incentivised UNCDF to develop instruments such as municipal bonds to diversify and expand the financial base for local government authorities (LGAs) beyond the grants provided by the central government. ‘To accelerate local development and ‘leaving no one behind,’ UNCDF has prioritised alternative financing mechanisms to help cities increase their ability to access sustainable sources of capital by mobilising public and private capital investment, said David Jackson, UNCDF Local Development Finance Practice Director.
The webinar brought together seasoned global experts. Among the panelists, Dr Mwamwaja, the Commissioner for Financial Sector Development in the Ministry of Finance and Planning highlighted that ‘The Ministry has been working with UNCDF to explore innovative sources of financing will help the government broaden its mix of financial sources to address local challenges by supporting LGAs to invest in income generating projects for improved service delivery.’
The webinar is part of a series to raise awareness on the use of financial instruments to fund development and achieve inclusive economic growth by fulfilling the commitments in the 2030 Agenda.
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