The City of Kumasi, under the leadership of Hon. Osei Assibey Antwi, has been selected as a beneficiary of US$250 million investment fund from the International Municipal Investment Fund (IMIF) at the just ended United Cities and Local Governments (UCLG) congress and the World Summit of Local and Regional Leaders held in Durban South Africa from the 11- 15 November, 2019. The KMA got selected among the first fourteen countries across the globe.
This was after the Mayor Honourble Osei Assibey Antwi made an enlivened presentation on the conceived projects to a large international audience in Durban. Kumasi is the only City in Ghana that made the list.
The two-fold package includes a Technical Assistance Facility (IMIF TAF), managed by UNCDF, which is designed to assist the selected countries build their capacity in the identification and effective design of bankable projects, carry out risk analysis among others. This technical support effectively comes into effect from the 2nd January 2020 to support the pipeline projects KMA submitted to the Fund. Under the second component, KMA gets over USD$250 Million to support the following projects: a multipurpose car park in the City centre, support for the redevelopment of the Asafo and Krofroum markets, and assist with aspects of the BRT system.
The establishment of the fund date back to 2018 following formation of the Malaga Coalition and the United Nations Capital Development Fund (UNCDF) by the United Cities and Local Governments (UCLG) together with their technical partner. The Global Fund for Cities Development (FMDV) created a coalition for “a global financial ecosystem that works for cities and local governments” –, because expanded sub national finance is crucial for sustainable development and our collective future. Cities and local governments are the key to accelerating implementation of Agenda 2030 and the Paris Agreement. From increased urbanization, to changing climate to plastic waste to peaceful streets, cities have the mandate, convening power, connection with the citizenry and comparative advantage to solve many global problems, and to advance national development agendas.
In December 2018, UNCDF launched a request for Expressions of Interest from Asset Managers for the International Municipal Investment Fund (IMIF) to serve as an instrument of the Malaga coalition. The IMIF will accelerate progress towards Agenda 2030 and the Paris Agreement by increasing available investment for local Sustainable Development Goals (SDG) oriented projects in developing countries. Following a competitive process, Meridiam of South Africa, the infrastructure investment and global asset manager, with USD 7 billion in assets under management was selected as IMIF fund manager.
Each IMIF investment support is meant to expand the scope of municipal finance such as, assisting KMA pioneer a new financial structure, contribute to a nascent municipal bond market, test a new type of PPPs as well as demonstrate how local government sponsored projects can accelerate the implementation of the global development agenda with measurable impact.
In addition to the above opportunity, the meeting brought KMA into contact with other potential investors who intend to invest in an international convention centre with a complimentary hotel facility and to support the development of Kumasi into an important tourism destination in Ghana. This is a feather in cup the Mayor and his team after recently winning the sanitation challenge.
The UNCDF together with KMA issued expression of interest to secure consultants to undertake detail feasibility studies to establish the viability of the proposed project. The proposals have been submitted and the evaluation is ongoing. Once the feasibility studies proved favourable the Assembly will access funds to execute the embarked projects includes the following:
• Multi- Storey Car Park (2500 Capacity) at the Central Market
• Re- development of Krofrom Market
• Provision of BRT infrastructure
• Construction of Kumasi City Hall complex with mixed use facilities
• Housing project at Dakodwom/Manhyia
• Establishment of an Abattoir and Poultry Feed Factory under the IDIF Policy in collaboration with private investor.