South Africa Cities Network/ PPIAF/World Bank Municipal

Finance Project

Presentation Ekurhuleni Municipal Council Chambers, Kempton park

25 May 2011

The Mandate of the SACN

• Network of SA cities and partners– information generation

– information exchange • Non-profit voluntary organisation • Initiative of COGTA, nine city municipalities,

and SALGA • Thematic program areas: City

Development; Productive Cities; Inclusive Cities; Well Governed Cities; Sustainable Cities

2

Initial Project Concept • Credit Assessments – knowledge demand for

financing for infrastructure can partly benefit from borrowing – Good financial understanding of cities (basis of report)

• Capacity Building: attain impact through a focussed capacity building programme– Lead to improved credit-worthiness and borrowing– Based on infrastructure needs assessment – Design suitable loan instrument

• The latter quickly gained in significance – Creditworthiness is systems, processes, people,

policies – Need to create the capacity to deal with them

3

Choice of location

• Tempted to interact with as many cities

• Lilongwe chosen on basis of – Looked close to creditworthiness– Chief Executive confronted some financial

challenges with positive results– Other assistance programmes ongoing

provided (twinning Joburg City Could have carried it out in any of the cities

• Time and budgetary constraints

4

Structuring program for the future

• The results

–Lilongwe will tell

–Sense that good level of participation

–High level buy in crucial

–It can be too much ...

5

Thanks!