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Ghana – Facing Its Urban Future |
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A major new urban development initiative has been launched by the Government of Ghana. The initiative features the introduction of legislation aimed to help the country’s local authorities access long-term financing for infrastructure and service delivery.
The Municipal Finance and Management Initiative (MFMI) will “enhance the power of the local governments to own, control and manage important expenditure decisions,” said Prof. George Gyan-Barfour, Deputy Minister of Finance and Economic Planning.
In remarks delivered at a workshop for parliamentarians and other development partners on 12 February 2008, the deputy finance minister noted that the initiative aims “to build the capacities and strengthen the financial base” of Ghana’s local authorities “by developing a formidable local government credit market.” It includes the establishment of a financial intermediary organization – the Municipal Finance Authority – which will borrow from domestic and international markets and then on-lend to Ghana local authorities (metropolitan, municipal and district assemblies).
The need for major infrastructure investments at the local level is part of Ghana’s Growth and Poverty Reduction Strategy (2006-2009), which is the country’s updated PRSP. The huge investment requirements have increased the need to “shift more towards mobilizing resources from the private sector,” according to Gyan-Barfour. |
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