African Cities Deepen Fiscal Reforms to Drive Sustainable Development

By The African Chronicle

As urban populations across Africa surge, city governments face mounting pressure to deliver essential services and infrastructure with limited fiscal resources and constrained access to capital.

Yet, amidst these challenges, several cities are making significant strides in strengthening their financial systems to support ambitious development agendas.

Nairobi and Lusaka stand out as leading examples of this progress. Speaking at a high-level side event co-hosted by the UN Economic Commission for Africa (ECA), UN-Habitat, and the United Nations Capital Development Fund (UNCDF) during the Fourth International Conference on Financing for Development (FfD4) in Seville, city leaders shared encouraging updates on their fiscal reform journeys.

Progress Amidst Fiscal Constraints

James Muchiri, Deputy Governor of Nairobi City County, highlighted tangible gains.

“In the last financial year alone, Nairobi’s local revenue increased by one billion Kenyan shillings, and the year before, by nearly the same amount.”

Similarly, Lusaka Mayor Chilando Chitangala acknowledged past struggles with revenue leakages but expressed optimism about new systems being put in place.

“We are learning how to collect more effectively and manage what we collect with greater accountability.”

These improvements come as part of a broader initiative known as the DA-15 Project, a joint effort led by ECA in partnership with UN-Habitat and UNCDF. The project supports six African cities: Nairobi, Lusaka, Addis Ababa, Dar es Salaam, Kigali, and Yaoundé, in assessing their financial health, identifying reform priorities, and building capacity to enhance public finance management at the local level.

Uncovering Gaps and Opportunities

The first phase of DA-15 involved comprehensive financial assessments across the participating cities. The findings revealed persistent challenges in revenue collection, expenditure oversight, and investment planning. However, they also uncovered promising reform opportunities.

James Muchiri noted the value of an independent evaluation.

“By using ECA’s methodology, we received a report independent of our own systems. It helped surface issues we hadn’t seen before and gave us concrete actions to pursue.”

To aid ongoing reforms, ECA developed the Fiscal Space Performance and Monitoring Dashboard, a digital tool thatenables city officials to monitor key indicators such as liquidity, solvency, and revenue collection efficiency in real time.This innovation aims to enhance transparency, accountability, and evidence-based decision-making.

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Hana Morsy, Deputy Executive Secretary of ECA, emphasised: “The dashboard strengthens transparency and supports smarter financial decisions, helping cities stay on top of their fiscal health.”

The Importance of Capacity and Political Will

While digital tools and diagnostics are vital, both Nairobi and Lusaka stress that local capacity building and political commitment are equally crucial.

Mayor Chitangala said: “We now have the skills and structures to move forward. We hope this knowledge benefits other cities across Zambia as well.”

Deputy Governor Muchiri added: “Ultimately, we want to reduce our dependency on central government transfers. That means building strong, reliable systems to collect and manage our own revenue with confidence.”

A Call for Broader Support and Recognition

ECA officials urge national governments, development partners, and the private sector to broaden their support beyond infrastructure investments to include strengthening financial institutions and governance at the local level.

“What if we stopped viewing cities as mere beneficiaries and started empowering them as leaders?” Hana Morsy posed.

Atkeyelsh Persson, Chief of Urbanization and Development at ECA, highlighted the importance of scaling capacity gains:

“It’s encouraging to see impact on the ground. The knowledge and skills developed through this work should extend beyond Nairobi and Lusaka to other cities in Kenya, Zambia, and across Africa.”

The Bigger Picture: Fiscal Reform as a Pillar of Sustainable Urban Development

Africa’s urban future depends heavily on cities’ ability to mobilise domestic resources and manage finances effectively. Strengthened fiscal systems enable local governments to invest in infrastructure, deliver quality services, and respond to shocks such as climate change and economic downturns.

The DA-15 initiative exemplifies a growing recognition that sustainable urban development requires not only funding but also robust financial governance, transparency, and local autonomy.

As African cities continue to grow rapidly, these fiscal reforms will be critical in turning urbanisation into an engine of inclusive growth and resilience, supporting the continent’s ambitions under the Sustainable Development Goals and Agenda 2063.

The DA-15 project and related fiscal reform efforts mark a promising chapter in Africa’s urban transformation, demonstrating that with the right tools and political will, cities can unlock the resources needed to build a prosperous and sustainable future.