ECA and partners launch capacity initiative for developing resilient urban fiscal space as part of national building
ECA and partners have launched an initiative aimed at strengthening the capacities of city governments in Africa to develop and implement policy reforms and strategies to expand and build resilient urban fiscal space.
Referred to as Expanded and resilient urban fiscal space for an inclusive and resilient COVID-19 recovery in Africa-DA-15 Project, the initiative was launched in Nairobi on May 22, 2024 and is being spearheaded by the UN Economic Commission for Africa (ECA) in collaboration with implementing partners, UN-Habitat and UNCDF, and the Nairobi City County.
According to Atkeyelsh Persson, Chief Urbanization and Development Section at the ECA, the project will be implemented in four cities in 2024- Addis, Nairobi, Kigali, and Lusaka. Two more cities -Dar es Salaam and Yaoundé will benefit from the project over the coming three years.
She noted that the project will support the selected cities through a chain of interventions, ranging from generating evidence to the design of actual interventions for improved fiscal space. Emphasis will be placed on the capacity of city authorities to carry out these functions whilst promoting fiscal transparency and accountability.
Ms. Persson said the project will focus on five financial indicators namely liquidity, autonomy, operating surplus, collective efficiency, and solvency. These areas help to define financial performance and in turn fiscal space to fulfil city government mandates while responding to shocks, such as climate change and conflicts.
Mr. Patrick Akivaga, County Secretary and head of Public Service, Nairobi County, Nairobi said, DA15 is relevant for Nairobi City Council’s adjustment to fiscal policy, particularly with regards to modernizing taxation in the context of transforming businesses and expanding fiscal space. SMEs and start-ups are important actors in addressing urban challenges.
“This Project is timely and the inclusion of other cities, locally and regionally, is an added benefit, due to the relevance of the regional economic discussion, highlighting the role of cities in sustainable development and the need for peer learning,” he said.
Acknowledging the importance of the project to cities, Mr. Akivaga said Nairobi City Council is excited to be a part of the DA15 project on local fiscal space as local finance is important for financing emerging climate related shocks, such as recent flooding in Nairobi, which caused damages to infrastructure, bridges, schools.”
Additionally, he said urban economy is important, especially as related to climate resiliency and shrinking municipal budgets.
Ms. Persson explained that fiscal autonomy of local governments is key in local financing, particularly in a post COVID-19 and global recession environment which has seen some major shifts in the financial landscape.
“It is important to link research and practice for disseminating lessons to counties and other institutions,” she said.
Source: ECA