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Municipal Finance and
Management Initiative
bill readying for passage
Accra, Aug. 28, Ghanadot/GNA - A Local Government (Finance)
Bill is being processed into law to guide the Municipal
Finance and Management Initiative (MFMI) in raising private
capital and other resources for sustainable development of
rural communities.
The bill will also establish a Municipal Finance Authority
with the mandate of mobilizing resources, channel them into
productive development ventures and transfer knowledge to
the Metropolitan, Municipal and District Authorities (MMDAs).
This was contained in a speech read for the Minister of
Finance and economic Planning, Mr Kwadwo Baah-Wiredu at the
opening of the Second Annual inter-District Forum and
Exhibition in Accra.
The two-day meeting organized by the Ministry of Local
Government, Rural Development and Environment in
collaboration with African Connections, a development and
business consultancy firm, is aimed at providing a platform
for local government officials to discuss matters of common
interest to the development of their respective districts
and municipalities.
The meeting has the theme: “Sustainable Development for
Rural Communities: Utilizing Innovative Strategies to
Accelerate Development towards Middle Income Status.”
Participants would discuss poverty reduction, infrastructure
development and finances of education, healthcare and
private investment and develop strategies for the
advancement of their various constituencies.
Mr Baah-Wiredu noted that the country’s domestic revenue
mobilization was weak because of over reliance on central
government transfers which were under very intense pressure
from all quarters of the economy, hence the creation of the
MFMI to offer affordable and sustainable sources of
financing.
To access capital markets and attract private capital, the
Finance Minister noted that there were preconditions such as
effective and efficient financial management and record
keeping, adequate capacity to appraise and select projects
for implementation, ability to structure financial needs
into the requisite debt vehicles targeted at the right
investor segment in the markets.
He explained that the over subscription of Ghana’s 750
million dollars debt instrument to over three billion
dollars showed the potential and level of confidence
international investors had in the country’s economy.
Mr Baah-Wiredu called for the need to put in place the
requisite structures and systems to ensure the right levels
of capacity through the Municipal Finance Authority to
execute the modus operandi required to take advantage of the
capital markets for cheaper long term capital for
development.
Dr Ayesha Hakeem, Managing Director of African Connections,
advocated sustained commitment to develop infrastructure and
encourage domestic and international private sector
investment in rural agro-business projects.
Dr Esther Oduraa Ofei-Aboagye, Director of Institute of
Local Government Studies, said assemblies had been hampered
by lack of independent resources to undertake the
interventions that were required.
GNA
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