Local Resource Mobilization and Local Finance Strategies to Support Urban Development Lessons from Qena Governorate, Egypt and the Local Finance Framework

Cities have the potential of being engines of sustainable development but only if they can leverage their full potential when they are effectively planned, governed, and financed. Trillions of dollars in additional investment are needed for infrastructure and service delivery in developing countries each year to fill the existing gap and keep up with population growth and urban expansion. This event aims to spark discussion and forge partnerships among key stakeholders within the local finance ecosystem. The goal of this session is to learn from the experience of resource mobilization in Qena, Egypt and identify key prerequisites that are necessary for unlocking additional external financing and explore a new innovative Local Finance Framework that provides local governments with strategies on how to prioritize and sequence financing for sustainable development.

Part 1: Empowering Urban Development Lessons from Qena Governorate on Resource mobilization
The Egyptian government's objective to achieve financial decentralization is paramount in empowering local administrations to effectively manage their budgets based on program and performance metrics. A national roadmap has been devised to enhance the state's revenue sources through a collaborative effort between the Ministry of Local Development and the Ministry of Finance and technical support from the World Bank. Through case studies and insights from Qena, the event will explore strategies to develop and sustain local revenue sources, emphasizing the need for explicit legal frameworks and participation mechanisms. Discussions will also address the interim measures required until comprehensive legislation is enacted, ensuring equitable resource distribution and fiscal autonomy for local administrations. The event will showcase Qena's journey toward financial empowerment and decentralized governance to achieve sustainable urban development.

Part 2: Introducing the Local Finance Framework (LFF) for a more efficient allocation of global resources towards sustainable urban development
In addition to mobilizing own source revenues, local governments need a more strategic and coordinated approach to local finance that effectively contextualizes, prioritizes, and sequences existing funding/finance interventions at the local level to ensure sustainability and value for money. This can be achieved through LFF which will help guide local government and development partner decisions’ toward more efficient funding and financing strategies. The event will provide an opportunity for input on how LFF can directly contribute to achieving the SDGs, especially critical in developing regions where the SDG investment gap has widened to $4 trillion and are concentrated in key urban sectors, such as energy, water, and transportation. This event will showcase the key aspects of the LFF and outline steps for its effective implementation, focusing on actionable, scalable solutions that enhance urban sustainability.