Finance directors from roughly 40 African cities and local authorities have arrived in Abidjan, the commercial capital of Cote d'Ivoire for an intensive training in tapping capital markets to finance urban infrastructure development.
The African Development Bank and United Cities and Local Governments (UCLG) organized the training which takes place from the 19th to the 24th of September 2022. UCLG is a network organization that represents the interests of local and regional governments and municipalities around the world.
The workshop will aim to address pertinent questions through group discussion and review of case studies. They include questions such as how do municipal bond issues work? How do you develop credible financial forecasts? What criteria do ratings agencies consider? What does it mean to support intermediation and management companies to access the capital market? What are strategies to access green finance?
These themes are expected to provide participants a better understanding of the capital markets ecosystem. Participants will also learn about the African Development Bank's new guidelines for lending to cities and its financing instruments. An additional training will subsequently take place in Johannesburg.
Some 44 participants from 26 countries on the continent are taking part in the Abidjan session: Representatives of the local authorities of Plateau, Marcory, Cocody, the autonomous district of Abidjan and the Sud-Comoé region are also participating.
François Paul Yatta, programme director at United Cities and Local Governments of Africa, said,
"Some African municipalities are almost ready to enter the private financing markets, which would allow them to multiply their sources of financing. Unfortunately, they do not yet have a thorough understanding of how these markets work, which prevents them from accessing them."
"This kind of programme will have medium- and long-term benefits for the beneficiary cities, making them credible business partners in the eyes of lenders," said Alice Nabalamba, an expert in the Infrastructure and Urban Development Department at the African Development Bank.
The investment needs of African cities are increasing as urbanisation accelerates across the continent. However, access to financial resources remains difficult. Most municipalities have trouble inspiring confidence in private partners, who demand more efficient and transparent management of public accounts.
The training programme also includes a refresher accounting management course that is expected to help municipalities adopt management practices in line with international standards. This is expected to bolster their credibility and credit ratings, enabling them to borrow more cheaply from capital markets.
Contact:
Romaric Ollo HIEN I Communication and External Relations Department I media@afdb.org
