CITIES WITHOUT SLUMS Financing Africa’s Cities The StakeThe of LocalCities Investment Alliances in Mozambique By Dr. Thierry Paulais (AFD) A Decade of Partnerships and Results authorities. Despite the variety of scale and scope, they have successfully catalysed further activities The publicationThe Cities Financing Alliance Africa’s has been Cities active has in beenMozambique realised Financing Africa’s Cities is organised into five parts and through a four-year project to address the issues of financing and helped spur meaningful partnerships. since 2002, awarding three full grants and five includes an appendix with eight concise case studies: the urbanpreparatory growth in Africagrants andwith througha total valuethe secondment of $1,633,000. of Thierry Paulais (AFD) as a senior urban finance specialist to the These grants have covered a wide range of issues, PartCountry I: The Programmefundamentals in Mozambique CA Secretariat.including The projecturban vulnerability,was jointly financed slum upgrading, by AFD and the Cities AllianceCity throughDevelopment non-core Strategies funds. and State of the PartThe ICountry addresses Programme fundamentals (CP) is at :the the centre techniques of the and Cities Reports. They also cover a wide geographic principlesnew Cities Alliancegoverning business the model.field It ofis a longerfinancing local fricanarea, rangingcountries from theare capitalconfronted city of Maputowith tovast investment.term programme It starts that byaims defining to enable what a country the toterm “local economic,the secondary social cities and of environmentalChimoio, Chokwe, challenges. Tete, better manage urbanisation by supporting activities investment”that help build means partnerships and describes and bring a coherence set of themes and TheQuilemane, continent Vilankulo is experiencing and Nampula. the wo rld’s highest A methodsamong nationalcentral policy,to operational local governments practice – and notions such as rate of urbanOver expansion;time, these grantsthe next have 20 beenyears executed will see more collectivecommunities. action and collective project sponsorship and than 300by million UN-HABITAT, new inhabitants the World inBank, Sub the-Saharan National cities. Association of Municipalities in Mozambique management,At its July 2011 an meeting, agglomeration’s the Cities powers,Alliance Executivevarious ways of Accommodating(ANAMM) that and scale the citiesof population themselves. increase The would financingCommittee local unanimously investments, selected st Mozambiquerategic planning, to and be comparableinterventions to building have empowered– within two and decades engaged – thenew financialbe the fifthforecasting. Country Programme.Financing techniques Similar programmes and relatively cities largelocal enough communities to house as the well entire as sensitised current nationalpopulation are already underway in Uganda, Ghana, Vietnam newand or Burkina recent Faso. special financial products, such as those of the United States. related to climate change issues, are reviewed. “The Country Programme Africa’s massiveItalian-Brazilian urbanisation Triangular will necessarily Cooperation increase the The book supplies a synthesis of public investment importance ofProgramme urban issues (IBTCP) and -their The Federativefinancing in public provides an opportunity to Republic of Brazil and the Italian Republic economics and a summary of the debates surrounding the policy. Yet, while urban issues bear upon many of these signed a Memorandum of Understanding relationshipleverage between Cities economic Alliance growth and local challenges, they(MoU) have to undertake remained cooperation a secondary priority for investment,experiences and how ineconomic Mozambique theories legitimi se and governmentsactivities and the with internationalthird countries. community. This MoU The justify local-government borrowing. It reviews investment resulted in the Italian-Brazilian Triangular growing gap between infrastructure and services already analysis,and selectionto build and astrategic strategic programming principles, Cooperation Programme, which has built and those needed justifies a drastic change in the prioritised the upgrading of degraded city theframework elements that constitute that alignsgovernance at the local level, scale of urbanneighbourhoods. financing. In Asthis context,national the and city oflocal andnational the operational policy, aspects local of a contractual approach. governments,Maputo, along Mozambique with their was supporters identified asin a the Part I further surveys the various forms of local internationalpriority community, area for pursue joint intervention. efforts to increase local governmentgovernment financial analysis capacity and compares and their relative governments’ solvency and infrastructure capacity, they relevanceurban in pooreach context. communities.” It concludes with some lessons must also rethink their forms and systems of financing from the financial and economic crisis of 2008 that urbanisation. directly relate to local investment issues.

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[email protected] | www.citiesalliance.org Cities Alliance Activities in Mozambique Agency (DANIDA), the Mozambican Government’s The Cities Alliance has supported a series of Water Supply Investment and Assets Fund activities in Mozambique over a nine-year period. (FIPAG), UNICEF and WaterAid, a British NGO. These activities, combined with the active As a result of the activity, service delivery was involvement of Cities Alliance members, have improved, primarily through decentralised urban laid the foundation for the Country Programme in management based on sharing of responsibilities Mozambique. with the community. Slum Upgrading and Vulnerability Reduction in Preparatory Grant for the Development of a Flood-Prone Cities and Towns in Mozambique. CDS for Vilankulo and Preparatory Grant for In partnership with UN-HABITAT and UNDP, the Development of a CDS and Slum Upgrading the Cities Alliance supported four City Councils Strategy for Chimoio. In partnership with USAID, in Mozambique – Maputo, Chokwe, Tete and the Cities Alliance awarded two preparatory grants Quelimane – to reduce the vulnerability of to develop full-scale funding proposals: one to the communities living in flood-prone areas. Each fast-growing coastal town of Vilankulo to develop city devised a flood mitigation strategy that a CDS, and a second to Chimoio – an emerging emphasised preparedness as part of a broader town on a major transport route – to develop a settlement upgrading approach. Based on CDS and a slum upgrading strategy. their experience, the cities subsequently Joint Work Programme (JWP) on City Futures made recommendations for a national disaster First and Second Phase. A partnership between management framework under discussion by the the Cities Alliance and United Cities and Local Government. Governments (UCLG) to further the agenda of Improving Water and Sanitation in Quelimane urban strategic planning, that motivated cities City. Built on a previous Cities Alliance activity in Mozambique to advance their planning in the city, this project supported the Quelimane agendas, primarily through ANAMM. As a result, Municipal Council in implementing a participatory many Cities Alliance partners are now assisting approach for upgrading in peri-urban areas. local development processes in Mozambique, In addition to the Cities Alliance, a number and the city of Maputo has prioritised CDS for of partners also supported this activity – UN- the coming years. HABITAT, the Danish International Development This served as a starting point for a State of Mozambican Cities Report and a CDS for Nampula. During the second phase of the activity, Mozambican cities expressed their interest in participating in UCLG’s City Mentoring programme. UCLG has established a task force for mentoring in Mozambique, including 2 Brazilian cities (Porto Alegre and Belo Horizonte) and the City of Maputo (Mozambique). Preparatory Grant for the Development of a State of Mozambican Cities Report. The Cities Alliance supported ANAMM to develop a full- scale application for the preparation of a State of the Mozambican Cities Report, an internationally

Community exchange, Quelimane, Mozambique established system of reporting on progress,

1818 H Street, NW | Washington, DC 20433 USA | T 202.473.9233 F 202.522.3224 2 [email protected] | www.citiesalliance.org challenges and issues faced by cities in achieving Support for upgrading the Chamanculo-C their developmental objectives. Neighbourhood in accordance with the Global Slum Upgrading and City Development Strategy for Urbanising and Reordering Strategy for Nampula City. This activity aimed Informal Settlements in the Maputo to foster partnerships between local stakeholders Municipality. Since 2001, the Cities Alliance and international partners. The Cities Alliance has supported the highly successful Integrated supported Nampula Municipal Council, the Urban Development Programme in Bahia, implementing agency, to design a citywide Brazil, a slum upgrading initiative with strong slum upgrading plan and a city development community participation from planning through strategy. The Nampula Municipal Council received implementation. The Cities Alliance gave the technical support from UN-HABITAT as well as the Municipality of Maputo a preparatory grant to Centro de Estudos para o Desenvolvimento do develop an activity in Mozambique based on the Habitat (CEDH), a centre located at the Faculty Bahia experience. of Architecture and Physical Planning of Eduardo The preparatory activity resulted in the joint Mondlane University in Maputo. Chamanculo-C proposal that brings together Slum Improvement Demonstration Project for Cities Alliance members, Brazil and Italy, with Maputo City. This Cities Alliance-funded project the Municipality of Maputo under IBTCP. As part was conceived as an adjunct to the Maputo of the initiative, the Cities Alliance is supporting Municipal Development Programme funded by the Municipality as it actively engages in this the World Bank. It supported the development pioneering example of South-South exchange. of an incremental, integrated approach towards This is the first project under the Country participatory upgrading in Chamanculo-C, one Programme in Mozambique. of Maputo’s many informal neighbourhoods. This activity formed the basis for discussions on development cooperation between Brazil and Italy with third countries.

Maputo, Mozambique

1818 H Street, NW | Washington, DC 20433 USA | T 202.473.9233 F 202.522.3224 3 [email protected] | www.citiesalliance.org Relevant Publications south: Cairo, Ekurhuleni, Lagos, Manila, Mumbai, and São Paulo. As a learning alliance, the Cities Alliance promotes Available in English and Portuguese. www.citiesalliance.org/ca/sites/citiesalliance.org/files/ learning between cities and among cities, governments, su-up-close_0.pdf international development agencies and financial institutions. Some of the relevant Cities Alliance Alagados – The Story of Integrated publications that share knowledge and disseminate Slum Upgrading in Salvador (Bahia), lessons learned include: Brazil (2008 to be revised in 2012) The publication captures the lessons Financing Africa’s Cities: The Stake of Local learned in the slum upgrading project Investments (2012) This upcoming publication is the supported by the Cities Alliance, result of a four-year undertaking to address the issues Government of Italy and the state of financing urban growth in Africa. The project was government of Bahia. jointly financed by AFD and the Cities Alliance through Available in English and Portuguese. non-core funds. To be Available in English and French. www.citiesalliance.org/ca/alagados Distance Learning Course on Integrating the Poor: Urban Integrated Slum Upgrading Upgrading and Land Tenure Actions (2010) This book provides a Regularisation in the city of comprehensive overview of the key São Paulo (2004) An overview of ideas drawn from the award-winning the process and outcome of the distance learning course “Integrated Alliance’s collaboration with the Slum Upgrading Actions.” Municipality of São Paulo from 2001 Available in English and Portugese. to 2004, when the city initiated the www.citiesalliance.org/ca/node/1970 Bairro Legal programme, an initiative The City Statute of Brazil: A providing security of tenure and improved living Commentary (2010) A collection conditions for slum dwellers. of papers analysing Brazil’s Available in English and Portuguese. groundbreaking City Statute (Federal www.citiesalliance.org/ca/node/728 Law 10.257), enacted in 2001 to regulate the chapter on urban policy in Brazil’s constitution. Available in CIVIS Notes English, Portuguese and Spanish. The CIVIS notes series shares knowledge and learning www.citiesalliance.org/ca/node/1947 arising from Cities Alliance projects and other activities Social Housing in São Paulo: in slum upgrading and city development strategies. Challenges and New Management It serves as a platform for policy debate among city Tools (2009) The publication highlights development stakeholders, including national and the second phase of the partnership local governments, donors and slum dwellers to impact between the Cities Alliance and change in the lives of the urban poor and advance the the São Paulo Municipal Housing urban development agenda. Secretariat (SEHAB), including the www.citiesalliance.org/ca/civis development of HABISP, a centralised The Case for Incremental Housing database with information about the city’s precarious Available in Portuguese settlements that has become a valuable tool for urban www.citiesalliance.org/ca/sites/citiesalliance.org/files/ development. Available in English and Portuguese. CIVIS_3_Portuguese.pdf www.citiesalliance.org/ca/sh-sp Climate Change: What does this mean for your city? Slum Upgrading Up Close (2008) Available in Portuguese The publication captures some of the www.citiesalliance.org/ca/sites/citiesalliance.org/files/ knowledge and shared learning from a CIVIS_1_Portuguese.pdf 2008 international policy dialogue on the “Challenges of Slum Upgrading: Can adapting to climate change also meet Sharing São Paulo’s Experience” development goals in cities in developing countries? co-hosted by the Cities Alliance and Available in Portuguese the city of São Paulo. It features the www.citiesalliance.org/ca/sites/citiesalliance.org/files/ experiences of six major cities of the CIVIS_2_Portuguese.pdf

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