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#AF7 The State of African cities 2016 Financial flows for urban development

Geci Karuri-Sebina, PhD
Jos Maseland


This report is a logical follow up to the inventory nature of the 2008, 2010 and 2014 State of African cities report that evaluates the role of foreign direct investment guidance as a major tool for financing urban development in African cities. To this end, The State of African cities 2016 : Financial flows for urban development is designed as a multi-year project analysing the roles of FDI and other financial flows with a view to identifying the interventions required for promoting diversification, growth and resilience of African urban economies. The project will focus on urban employment generation, improving urban food, water and energy security, strengthening rural-urban linkages and promotion of infrastructures that enhance regional economic cooperation, as well as review channels to increasing municipal revenue streams for strengthening local level governance capacities.

Given the broad range of actors needed to stimulate effective local urban intervention, Phase 1 (2015-2016) ; a two-year research proposal, will be realised under partnership between the African Development Bank (AfDB), the United Cities and Local Governments of Africa (UCLGA),UN-Habitat with the prospect of partnering with DfID. It is further envisaged that :
Phase 2 (2017-2018) of this project will provide urban investment modelling software through which cities can simulate virtual investment scenarios and derive information on the impacts to be expected.

In light of Africa’s current and unfolding developmental challenges, the project seeks to set in motion an entirely new process of engagement between the global private sector, the international donor community, and African local authorities to promote FDI that is not only better-targeted to African urban economies’, but stimulates partnerships between FDI providers and cities to improve urban development processes. Ultimately, well-guided FDI can bring knowledge and technology transfers ; establish and reinforce global supply chain linkages ; and enhance access to world markets besides many other catalytic benefits such as investments in infrastructure and the development of human resources and skills through knowledge and technological transfers.


President ; Ntombini Marrengane

S. Mbanga / G. Karuri-Sebina – on SA SoCR
T. Fekade – on Ethiopia SoCR
W. Kombe / J. Lupala – on Tanzania SoCR
A. Badiane / UN-Habitat – on State of African Cities

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