A Collection of Shortlisted Initiatives of the 2nd Guangzhou International Award for Urban Innovation
3．How the innovation is related to other experiences and parties As part of the initial scoping, the DMFP conducted study tours to the City of Johannesburg and the City of Douala to learn about their experiences in the capital markets. In addition, members of the DMFP management team have professional experience in bond issuance in more developed markets and have exchanged with other development finance experts at international conferences |City Hall
and forums (including the World Urban Forum, Metropolis, AfriCities, etc.). Through its partnership with the Cities Alliance, the DMFP will disseminate its
Innovative aspect(s) of the initiative 1．Revolutionary innovations
tools to share with other cities.
The DMFP should be considered as a revolutionary initiative—although there is a
4．Obstacles or resistance
global tradition of bond issuance to fund capital-intensive projects, this represents
The leadership of the City of Dakar has been extremely supportive of the DMFP,
the first usage of bonds for a city in sub-Saharan Africa (outside of South Africa) that is executed without the full guarantee of the central government. Amongst its many risks, the DMFP faced initial risks (including selecting an appropriate project balancing investor and developmental expectations, attracting a sufficient number of investors through demonstrating creditworthiness) and ongoing operational risks (including meeting its debt service obligations to avoid default).
2．Characteristics The innovations of the DMFP are in the sector of financing (testing a new fund-raising tool), social (constructing a new marketplace for street vendors
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experiences to other cities across sub-Saharan Africa and will develop replication
and has been instrumental in encouraging its success. A challenge that the management team faced was in selecting an appropriate investment project that met the twin goals of the social side of development/the needs of the urban poor and the economic side of project finance/the expectations of investors. After months of consideration and focus group sessions bringing together members of civil society and elected politicians, the team proposed the long-considered marketplace as an appropriate project for the municipality's consideration.
Desired change or outcome and how it is measured
in a strategic location in accordance with the city's long-term development
1．Achievements
strategy), planning (it is part of a long term strategic plan named 2025 vision)
As a result of the DMFP, the City of Dakar now has access to a new financing
and governmental and administrative (building capacity in city staff to enhance
mechanism that can be instrumental in helping the city to achieve its social
creditworthiness through good governance, financial management, and public
and financial goals for capital-intensive investments. Additionally, in terms of
participatory processes).
this issuance, the DMFP plans to track the impact of the construction of the
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