Municipal Investment Finance (MIF)
The programme aims to address the severe shortfall of infrastructure and services especially in the secondary cities of LDCs, where the problem is compounded by growing urbanization and migration. These cities do not have the capacities or the access to resources that capital cities have, and their growth is critical to both inclusive growth and LDC graduation. The MIF programme will initiate a new line of business in municipal investment finance.
The goal is to increase the ability of local governments and other sub-sovereign entities to address key urbanization challenges through access to sustainable sources of capital financing through innovative financial instruments and mechanisms, such as loans, bonds, pooled financing or investment funds. This includes improving access to capital for investment in critical urban infrastructure and services in LDC cities, creating or strengthening financial markets and market intermediaries so that they can facilitate capital access for cities, and establishing policies, standards, and practices that improve the efficiency and effectiveness of the capital financing process in these countries.
The theory of change involves addressing infrastructure investment needs through facilitated access to domestic private sector finance and capital markets resources. During the five years of implementation, the program will be rolled out in four countries (two in Asia and two in Africa). The pilot countries are Uganda and Bangladesh.
- June 2016