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

Cities can be engines of sustainable development but only if they leverage their full potential through effective planning, governance, and finance. Trillions of dollars in additional investment are needed for infrastructure and service delivery in developing countries annually to 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 identify key prerequisites for unlocking external finance through the use of a new UN-Habitat tool, the Local Finance Framework, which helps prioritize and sequence financing for sustainable development. The session will incorporate this framework with lessons learned from resource mobilization reform in Qena, Egypt.

Part 1: Introduction of the Local Finance Framework (LFF): a tool to efficiently allocate global resources towards sustainable urban development

In addition to mobilizing own source revenues, local governments need a 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 the LFF, which helps to guide local governments 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 in developing regions and 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.

Part 2: 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.