Supporting the future of municipal bonds in sub-Saharan Africa: the centrality of enabling environments and regulatory frameworks

《Supporting the future of municipal bonds in sub-Saharan Africa: the centrality of enabling environments and regulatory frameworks》

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关键字: Dakar; Douala; Johannesburg; Kampala; municipal bonds in sub-Saharan Africa; municipal finance in sub-Saharan Africa

作者单位: [Gorelick, Jeremy] USAIDs WASH FIN Programme, Washington, DC USA. [Gorelick, Jeremy] Johns Hopkins Univ, Classes Dev Finance & Real Estate, Baltimore, MD 21218 USA. Gorelick, J (reprint author), 1515 Wilson Blvd,Suite 800, Arlington, VA 22209 USA. E-Mail: jgorelick@jhu.edu

摘要: This article explores the universal obstacles limiting sub-national governments from using municipal bonds. Specifically, it examines four case studies - Johannesburg, Douala, Dakar and Kampala - to understand their approaches to municipal bond issuance. The chief obstacle to municipal bond issuance for raising funds relates to the constitutional and regulatory systems in each country. This represents a significant departure from the commonly-held understandings that cities in the region are not eligible for long-term debt, lack capacity, or are not viewed as creditworthy by purchasers of municipal bonds. The success of municipal bond issuance appears contingent on strong interlinkages between central and sub-national governments. This article critically reviews the powers granted to local governments under the countries' constitutions, specifically the legislation that enables or prohibits municipalities from issuing bonds. Reform for a financially sustainable level of indebtedness for sub-sovereign governments is essential for the future growth of cities in sub-Saharan Africa.