HABITAT III & AFRICAN CITIES GROWTH - AFDB'S DR FRANNIE LÉAUTIER ON: SOUTH AFRICA'S DRAMATIC LOCAL ELECTIONS - CGLU AFRIQUE/HUB DES ...
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THE NEW MAGAZINE OF UCLG-A No 2/2016 AfDB's Dr Frannie Léautier on: Habitat III & African CITies growth The road to Quito South africa's dramatic Local elections COP22 Preparations RSA: R45.00 - VAT inclusive
FOUNDER AND DIRECTOR Jean Pierre Elong Mbassi PUBLISHER Tomás Paquete #02 THE NEW MAGAZINE OF UCLG-A tomasp@markets-africa.com ASSOCIATE PUBLISHER Africa looking forward Copyright: ’http://www.123rf.com/profile_pxhidalgo’>pxhidalgo / 123RF Stock Photo Elisée Marie elisee@markets-africa.com EDITORIAL Editor to Habitat III at quito Kerry Dimmer kerry@markets-africa.com CORRESPONDENTS João Rosário Paa Swanzy Mpinane Senkane Kabelo Sennah Dianne Tipping-Woods Linda Cilliers Catherine Nambi Mildred Terese Issek SPECIAL CONTRIBUTORS Mariam Lady Yunusa Jacqueline Moustache-Belle Dr. António Gameiro Layout Directions +27 11 7921930 Sales Manager Edvaldo Naval | edvaldo@markets-africa.com Printer Foreword UNCDF Paarl Media Novus Holdings 5 Jean Pierre Elong Mbassi 42 The Bond issue 15 Jan Van Riebeeck Drive Paarl, 7646, South Africa Celebrating our cities Botswana infrastructure 6 Maputo 46 Delivering water African Cities is published by Markets of Africa Ltd on behalf Habitat III Infrastructure development of UCLG-A 8 Africa’s road to Quito 49 Monopoly for real UCLG-A 22, rue Essaadyine Hassan, Rabat, Kingdom of Morocco Cover story Kampala T: + 212 537 26 00 62 / + 212 537 26 00 63 12 Rapid pace of urbanisation 54 Kampala shows the way F: + 212 537 26 00 60 Interview with Dr Frannie Léautier W: www.uclga.org Angola UCLG 56 Urban and habitat challenges 17 Voice of the islands co-President of UCLG, Energy Jacqueline Moustache-Belle 59 Energy catastrophe or energy- secure futures? All correspondence and advertising enquiries should be Accra addressed to 22 Attractive real estate investment hub COP22 Markets of Africa 65 Ready and united for Marrakesh Suite 25 81, Lee High Rd Local Elections - South Africa London, SE13 5NS, UK 27 Free, fair and hung Luanda International Airport T: +44 (0) 20 8004 5556 E: admin@markets-africa.com 70 We have lift-off W: www.markets-africa.com Cape Town All material is strictly copyright and all rights are reserved. 32 Municipal Management Best PPP’s No part of this publication maybe reproduced in whole or Practices 72 Opportunity or risk? in part without written permission of the copyright holder. While every effort is made to ensure all data is correct at the time of publication, UCLG-A cannot be responsible for Cities Alliance 7th Africities editorial errors. Opinions expressed in African Cities are not necessarily those of UCLG-A and UCLG-A does not 37 Africa’s cities need strategies 73 Africities influence accept responsibility for advertising content. Any pictures or transparencies supplied are at the owner’s risk. 3
AFRICAN CITIES #02 African cities and local governments: this magazine is important Jean Pierre Elong Mbassi Secretary General, UCLG-A The global agendas negotiated by the no choice but to innovate, exchange practices; and to voice concerns should international community in the course notes, and engage in order to build implementation processes be delayed of 2015 and 2016 have confirmed a better life for all on the continent. or derailed from expected trajectories. the obvious: cities and territories are the places where the fight against At this historical juncture, a number The African cities magazine is intended to poverty and inequality will be won or of agendas have been, or are being, put African local and regional authorities lost; where the fight against global adopted by the international community: on the map so that their positions count warming and for low carbon societies the 2030 Agenda on Sustainable in the definition of development and will be won or lost; and where the fight Development Goals (SDGs); the Paris cooperation policies and strategies in for sustainable and resilient cities and Agreement on Climate Change; Africa and worldwide. It provides a human settlements will be won or lost. and the forthcoming New Urban comprehensive base for those who wish Agenda that will be signed in Quito, to work and partner with African local This centrality of cities and territories in Ecuador at the Habitat III conference. and regional governments. It is intended shaping the future of humanity puts a to be the rallying space for those who huge responsibility on local and regional These are agendas that will shape care about leaving no one behind. authorities that are compelled to adopt international relations in the field of innovative approaches to governance, development and cooperation for the next African cities magazine also provides a service delivery, and technologies. It is three decades. For these agendas to have conduit for those interested in reinventing such innovation that will enable them a meaningful and tangible impact on a world of solidarity, and in providing to cope with the requirements of the people on the ground, local and regional a better life for all; a world of viable, emerging new world, in which, for the authorities roles should be prominent sustainable and resilient cities and first time in history and from now on, the and recognised, as they are the ones best territories where all can contribute share of urban dwellers will surpass that placed given their closeness to citizens, and participate, as well as be able to of the populations living in rural areas. to ensure the implementation of such monitor and evaluate public policies. agendas within populations at grassroots. This global trend is even more African cities magazine empowers challenging in Africa where cities It is timely therefore that the UCLG-A local Africa to mark its presence, will have to accommodate, in the leadership is ensuring that African local own and build its future. next 20/30 years, the equivalent of and regional authorities are provided today’s entire continental population with an appropriate communication This magazine is the responsibility of its at 1.2-billion people. This is almost platform, the African cities magazine, prime target audience, those being the the entire 2015 population of China, in order to demonstrate the activities local and regional authorities of Africa and three times the population of the USA, they are undertaking pertaining to their partners. It is they that will keep this and four times the population of the the implementation of these global magazine alive and motivate its constant European Union. African local and agendas; to share lessons learnt from improvement. Their presence, inputs, regional authorities therefore have their experiences be those poor or best and contributions are highly welcome. • 5
AFRICAN CITIES #02 By: Mariam Lady Yunusa Recently retired from UN Habitat as Director of Parnerships and Manager of the African Urban Agenda Africa is ready for Quito – not in 54 disparate entities, but as one block, with a common position, with one voice. It is indeed cause for celebration and expectant jubilation. The mail came in from one of the two Africa's road to African Members of the Habitat III Bureau who was coordinating Africa’s position at the negotiations on the New with one voice. It is indeed cause for focus but they set the stage for global Urban Agenda. “We have a document celebration and expectant jubilation. awareness and regional policy debates. on which we are all agreed.” The relief The urbanisation phenomenon was not that followed was palpable among all the Why is this such a milestone? Although associated with Africa and some parts of African diplomats, professionals, experts, a new mandate for the United Nations Asia, which were considered rural. government focal points, and partner Centre for Human Settlements (UNCHS) networks who have toiled for over two was derived to support and monitor the During the Habitat I and Habitat II years to build up Africa’s position on implementation of the Habitat Agenda Conferences, Africa’s participation was Habitat III. Their joy was infectious even adopted at the Istanbul Conference, hardly relevant. The continent was still across the airwaves. Africa is ready for and approved by all regions of the basically rural and participated as a Quito – not in 54 disparate entities, but world, both the Vancouver and Istanbul continent that neither accepted that it as one block, with a common position, conferences had no regional or sectoral needed to worry about human settlements 8
The last two decades have seen a marked increase in Africa’s economic growth and productivity and with it a rise in the multiple challenges of rapid urbanisation and the growth of cities and human settlements. The consequent growing appreciation that it is impossible to deal with Africa’s growth and poverty challenges without managing urbanisation has provoked the establishment of the African Ministerial Conference on Housing and Urban Development (AMCHUD). Over a period of 10 years (2005-2015) they met in different cities of Africa bi-annually, discussing a wide range of themes on urbanisation. At its 4th meeting in Nairobi in 2012, the Ministers took a decision to “maximise the urban advantage”. This decision stood on four pillars: develop a transformative national urban policy; create a more compact city at human scale; undertake institutional and legal reforms and learning to do things together. At its session in Ndjamena, the AMCHUD took a decision to advance partnership Copyright: www.123rf.com/profile_pxhidalgo’>pxhidalgo / 123RF Stock Photo (learning to do things together) as the mechanism for preparing Africa for the upcoming Habitat III. In appreciation of the daunting challenge of building a consensus on urbanisation to reach a broad understanding of the common issues that confront the African continent, and as a response to the need for an early preparation and to have a unified voice for Africa at Habitat III, a group of African Member States took up the challenge and provided financial and technical support to facilitate country level preparations as well as support consultations required for quito forging a common position that has been achieved as a product of the national reports. At its 5th Session, African Ministers decided to further adopt the UN Habitat-led nor understood the implications of the State pronounced their determination to African Urban Agenda (AUA) as its main urbanisation dynamics to its predominantly “reap the potential benefits of cities and input into the ambitious and visionary rural-based primary exports as the towns as centres of economic growth Agenda 2063. The AUA was born as a backbones of their economies. and places of opportunity and prosperity partnership between government and for all African people in the course of non-state actors out of the need to raise The Building Blocks economic development and structural the profile of urbanisation as a force for transformation.” The AU called upon UN- structural transformation of Africa, as The first signs of continental consciousness Habitat to continue providing support to well as a vehicle to prepare Africa for of the challenges and potentials of the Commission of the AU to implement the Habitat III Conference. Subsequently, urbanisation for Africa was marked by this decision. This marked the opening of the transition of the AMCHUD into the African Union’s (AU) Decision 29 of space for attention to urbanisation at the AU’s Specialised Technical Committee 2003 in Maputo, in which Heads of highest level. No 8: Public Service, Local Government 9
Decentralisation Urbanisation and Local Government (STC No.8). The AUA‘s top-down and bottom-up approach, which emphasises partnership between government, civil society and Africa’s road to Quito is marked by early preparation the private sector, was integrated in the work plan of the STC No.8 and championed by Member States that committed the programme of work of the 10-Year resources to support national governments to prepare implementation plan of the Agenda 2063, was subsequently endorsed by reports in an inclusive, representative, consultative and the Heads of State in Johannesburg in integrated manner. These reports formed the inputs for 2015. In forging consensus to achieve a common position and frame of work, the African Regional Report on Habitat III, and inspired various strategies were adopted: the Common African Position on Habitat III. • T echnical and financial support to multi- level and multi-sectorally comprised National Habitat Committees to prepare their national reports; Department of Political Affairs, at which by African Heads of State at its Summit in concepts, processes and regional Kigali in June 2016, served as the main • S ponsoring civil society members to position on issues were defined. premise for Africa’s engagement and accompany government partners to negotiation for the NUA. regional and global conferences at The sub-regional economic commissions which they participated in various were also contacted, consulted and From New York to Nairobi to Abuja to events alongside their counterparts a some of them invited to the regional Kigali to Surabaya and back to New York, from other regions; meetings to participate in shaping the Africa’s main concerns, which it pushed Common Africa Position. to see reflected in the NUA, were mainly • C lose support to UCLG-A by providing woven around: finishing the business strategic inputs into all its regional Of special note is a side event that was of the MDGs on slum rehabilitation seminars designed to prepare organised in New York in Sept 2015 at and prevention; adequate shelter and associations of local governments to the SGD Summit, which was attended by affordable housing; basic services and understand their roles in the AUA, UNSG, Chairperson of the AU, President effective environmental management; the New Urban Agenda (NUA), the of the AfDB, Executive Secretary of the retaining the concept of cities and Sustainable Development Goals UNECA and the Executive Director of the human settlement as a continuum; (SDGs) and Agenda 2063; UNFPA. At this event the world witnessed strengthening of institutions and systems an Africa that had found its voice, and for transformative change; enhancing • T he outline of the processes for was decisively preparing to engage environmental sustainability and effective the Habitat III were discussed with the world as a continent with the most response to climate change in human all National Associations of Local challenges in urbanisation. settlements; enhancing Africa’s global Governments and this buttressed a competitiveness; addressing attendant strong buy-in to Agenda 2063; Key messages on the role of urbanisation consequences of massive movement in Africa’s structural transformation were of populations due to insurgency and • U N-Habitat took advantage of all articulated and disseminated at all global terrorism; urbanisation as a force major conferences to hold side events conferences and Heads of State summits. for economic growth and structural to which cross-section of African All the strategies outlined served to raise transformation; and as a catalyst for job experts, professional, diplomats and the awareness of Africa at all levels to creation for women and youth. civil society partners participated, and the challenges of urbanisation as well the concepts of the AUA and its drive as its potential as a force for structural Most of the issues of concern to Africa were for a common position was explained; transformation of African economies. captured in the draft NUA but a point of The buy-in and build-up to the Common critical importance to the continent, which • A n applied research was commissioned, Africa Position on Habitat III (CAPH3) proved tough, was the strengthening and the report served as an expert and that culminated with the endorsement by of UN-Habitat based in Nairobi as the intellectual compliment to the Africa African Ministers at the Africa Regional focal point for human settlements and Regional Report, which was produced Conference on Habitat III in Abuja in Feb sustainable urbanisation. The negotiations as a synthesis of the national reports; 2016, was indeed gratifying. were held off for four months and a couple of points revolving around the • S everal expert group meetings were The CAPH3 which stands on eight pillars implementation and review of the NUA. held, under the leadership of the AU and the Abuja Declaration was endorsed After 38 long hours of negotiation, the 10
final draft that has been agreed to is resolved diplomats, experts, professionals to shaping a new strategic global urban testimony to the commitment of the parties and technocrats who spared no night nor agenda with a human face. A global involved, and the willingness to give and day in keeping the momentum going. vision of the 20th century urbanism, which take. Africa has stood up to be heard. They kept in tow with emerging positions addresses the specifics of compact cities, at the negotiation table and consulted polycentric growth, mixed land uses and The Driving Force one another for redlines, amber lines city skylines, prevention of unplanned and green lines. Unlike its fragmented growth and sprawl and transit oriented Africa’s road to Quito is marked by early posture in previous conferences, Africa development, is not only refreshing but preparation championed by Member on this road is sure-footed as a committed a welcome development to Africa. The States that committed resources to member of the global community. Africa generality of Africans can relate with and support national governments to prepare negotiated hard while making its voice find meaning in the New Urban Agenda reports in an inclusive, representative, clear on its interest and issues germane – a thought without which the world could consultative and integrated manner. to the development and attainment of its not be said to be truly advancing. These reports formed the inputs for the Agenda 2063. African Regional Report on Habitat Needless to state that post-Quito will III, and inspired the Common African Africa is going to Quito’s Habitat III be critical as all eyes, so to speak will Position on Habitat III. with a stronger voice than hitherto, yet be on Africa as the last global frontier as a continent that is keenly aware of of urbanisation to uphold its loud and Africa’s road to Quito has been framed its challenges and, more than ever, the articulated voice into concrete sustainable by strong partnerships, alliances and need for building trust and alliance within programmes - programmes which will unflinching resolve. Member States itself and the people as well as the need give hope and confidence to the youth have been faithful to their resolve to do to cooperate with international partners of Africa and equip them to own their things together and with cooperation and in a mutually respectful and beneficial future … programmes that will stimulate collaboration. UN-Habitat, the Economic manner. economic transformation and promote Commission for Africa (UNECA), the regional integration in Africa. AfDB and the UCLG-A gave the requisite Africa is pleased to have overcome its support to the AU to formulate the CAPH3 traditional weakness of fragmentation Africa’s road to Quito has been tough, that was built on all of Africa’s previous and has learned value in sharing views exerting, challenging and engaging but commitments as already highlighted. and pooling resources on its way to Quito. absolutely rewarding and I believe, worth Backed by a team of dogged and firmly The continent is glad to have contributed it all. • 11
AFRICAN CITIES #02 Rapid pace of urbanisation By Kerry Dimmer 12
The way we think about urbanisation has changed dramatically since Habitat II, where it did not feature as strongly as it will at Habitat III. Dr Frannie Léautier, Senior Vice-President of the African Development Bank provides comment on the conference and the economic sustainability of African cities. For Africa this is going to be a conference “Nevertheless I do believe that the In being closely aligned to the Habitat III that will have much importance, and Habitat III discussions could go beyond conference, the AfDB is co-sponsoring couldn’t be better timed as the continent’s these elements to really explore ways a joint publication on African cities with cities face and tackle the challenges of to put urban development at the centre UN Habitat, and is also planning a joint the rapid growth of urbanisation. of Africa’s economic transformation AfDB/(UK) Department of International process. This would include highlighting Development/UN Habitat side event One of the most significant events will be and clearly setting priorities and around the findings of the publication. In the adoption of the New Urban Agenda, targets related to the materialisation addition there was a proposal made by the a document that in essence is an action- of urban development’s transformative AfDB’s Development Research Department, oriented blueprint, which ‘will set global economic opportunities and positive which was approved, to host a networking standards of achievement in sustainable externalities such as creationing more, presentation on State of African Cities urban development, rethinking the way and better, jobs (including for the youth), 2017, and another on Housing Dynamics we build, manage and live in cities industrialisation, productivity increase, in Africa as a side event. through drawing together cooperation with enhanced prosperity and quality of life.” committed partners, relevant stakeholders, “We are currently working with UN and urban actors at all levels of government African Urban Agenda Habitat in Nairobi for the presentation as well as the private sector.’ of the side events. We have also been Léautier also says that it is important to approached by our colleagues from the “The New Urban Agenda is,” says Dr clearly acknowledge the importance of World Bank Global Practice on Urban Frannie Léautier, Senior Vice-President the financing implications of the African Development for consideration to speak of the African Development Bank Urban Agenda and make efforts to come at their own side events, but this is yet to (AfDB), “a commendable vision that up with an estimate of the financing be confirmed,” says Léautier. has so far set the scene in preparation needs to support the Agenda. of the consultations for the Habitat Status quo III discussions. It has several merits “It is equally expected that the Habitat including the efforts to take stock III discussions will tackle the crucial Considering the timing of Habitat III, it and learn from the achievements of question of how to secure adequate and is pertinent to visit the issues currently the Millennium Development Goals, innovative financing to ensure that the facing African cities. Over the past 50 and most importantly builds on Goal Urban Agenda truly works for African years, Africa’s centres of economic activity 11 of the Sustainable Development people. have shifted markedly from the agrarian Goals (SDG) to propose a new global countryside to urban areas. Urban areas urban paradigm geared towards “I believe that it would add value now account for the bulk of economic achieving inclusive, sustainable urban that the African Urban Agenda activity given that more than a third of the development, which puts African people specifically includes advocacy and population now live in towns and cities. and the improvement of their livelihood capacity enhancement aspects geared at the centre of the agenda.” (Goal 11 towards pushing for collective efforts to For Léautier, there are many areas that of the SDG is to ‘make cities and human continuously support and bring countries need to be investigated and considered as settlements inclusive, safe, resilient and to realise the necessary transformative potential drivers of economic and social sustainable.’) changes and adequately insert urban development. “Domestic demand in urban development opportunities and areas is increasingly becoming important “The fact that the debates around challenges in their national development in supporting rural production and Habitat III will be focused on political and plans and strategies. agricultural productivity. Linked to this is substantial decentralisation, land policies that the urban sector currently accounts for and effective planning systems, and “Without strong commitment and buy- 40 percent of the total population, including integrated human settlements strategies in at national level, gathered through home production, and 60 percent of the that make housing and service rights work participative consultations and debates food market. We need to feed this market, for the poor, is most welcome as these culminating to national urban plans in through our own resources.” touch on the important building blocks most of the countries, the implementation of sustainable urban development,” of the African Urban Agenda may face Improvements to production value chains continues Léautier. significant challenges.” are needed. As Léautier points out, the 13
more densely populated an urban area is, the more support should be given to post-farm segments of food value chains beyond primary production. “These segments include wholesaling, processing, logistics, distribution, retail and food stalls, and the larger pool of urban customers enables firms to avoid under-utilisation and other seasonal effects.” The informal economy of Africa has worked remarkably well in producing entrepreneurs in the food sector particularly but this needs to be enhanced so that productivity can be improved through, suggests Léutier, increases in clustering and networking. With more productive informal and non-farm jobs flourishing in close proximity to towns and cities, farmers close to those areas can provide employment opportunities. Another aspect to consider is that urbanisation creates demand for industrial products and this contributes to structural transformation and industrialisation. “Rising incomes shift household demands towards industrial products, while the middle-class preference for diversity allows value-creation through differentiation. Moreover, by mending Africa’s infrastructure deficit and building new cities, housing and commercial properties generate significant demand for construction materials and supporting industries.” Supporting structural transformation requires inter-city and intra-city connectivity. Léautier says that investment in connective infrastructure, logistics and storage capacity is required. “By reducing trade costs among cities, and having such cities specialise in niche functions and complementary products, as well as improved transport and communication, the market catchment can be expanded for firms, which will further Dr Frannie Léautier reduce the transaction cost of sourcing intermediate inputs from specialised cities within a chain.” One of the most important aspects The New Urban Agenda is a commendable vision remains that by encouraging that has so far set the scene in preparation of the specialisation and shared services, cities also generate external economics, which consultations for the Habitat III discussions. can be classified into three functions: matching, sharing and learning. Léautier expands: “The concentrated pool of workers and supply industries allow 14
firms to specialise in their comparative advantage and outsource uncompetitive Informal growth activities. Subcontractors can take advantage of the group of potential While there may be steady economic growth in Africa, this has not been matched customers inside the clusters to scale up by proportional formal employment creation. The proportion of the labour force in their operations. vulnerable employment in Africa dropped by only two percent between 2000 and 2015, despite exceptionally robust GDP growth rates of over five percent a year “In addition, cities facilitate access fuelled by a long commodity boom. “Most workers thus stayed in the informal services to a wider range of shared services sector, for instance as street vendors, with no prospect of moving to more productive and infrastructure. The concentration activities and durably improving their livelihoods,” says Léautier. of users spreads the fixed cost of indivisible goods and facilities such The informal economy is estimated at 61 percent of urban employment and 93 percent as public mass transportation, of all new jobs created. Most people are trapped in vulnerable employment or are skill training centers, universities forced out of the labour force altogether. Léautier says that to be able to meaningfully and machineries. support, particularly youth progression, and create the right jobs, skills development is key to match youth skills with the available urban job opportunities. Employment “Investments in cities offer surrounding creation in a world shrinking through mechanisation is going to remain a problem regions better connectivity to national and but the adoption of new technologies enables diversification into new industries and global markets,” continues Léautier. “and high-tech manufacturing, especially now with more foreign investors linking to local enable knowledge sharing and the cross- firms. Combined to this, the clustering of firms into inter-related groups is helping to fertilisation of ideas. Proximity facilitates reduce the cost of doing business and enabling the transfer of skills. communication and sharing complex ideas among firms, research hubs and “Urban authorities should be looking at providing more incentives, including tax related actors through a process of breaks, for firms that invest in local companies or providing skills transfer by training comparing, competing and collaborating. locals. Léauter says: “If urban cities provide seed capital and funds for research and innovation, firms are enabled to attempt new ideas and fulfill ‘nursery’ roles by Close contact generates the trust and developing new products and experimenting with business processes borrowed from formation of formal and informal networks different activities. This process of trial and error through deductive tinkering adds to of innovation. The innovation-generated the country’s know-how and complexity.” productivity gains attract mobile capital and talent to enforce a virtuous circle of More also needs to be done to protect street traders from being seen as undertaking endogenous growth.” illegal activities. Léautier remarks that supporting local traders in urban cities starts with recognising the role they play in the urban economy and the potential for them None of these are going to transform cities to graduate into formal entities that can contribute to the revenues of the urban into engines of growth however, unless authority. “A comprehensive reform package is necessary to bring these workers there is investment into sustainable public under some legal protection, ensure minimum wages and non-wage safeguards, infrastructure and services, without which train them, and match them with jobs for a gradual progression into higher-value, will impose huge costs on third parties that formal work. Participatory approaches can also help integrate informal firms into are not necessarily involved in economic the urban fabric and facilitate the development of an organised formal urban sector. transactions. “Congestion, overcrowding, Appropriate regulations and targeted incentives enable informal employers to move overloaded infrastructure, pressure on beyond merely subsisting to saving for and investing in productivity growth.” ecosystems, higher cost of living, and higher labour and property burdens As will be seen from the outcomes at Habitat III, the solutions and creativity in solving can offset the benefits of concentrating not just Africa’s but the world’s urbanisation issues, will advance change. For now economic resources in one place. And though massive urban growth is a challenge and opportunity for Africa. Léautier says: these negative externalities tend to “Africa must anticipate that rapid urbanisation will come with significant challenges increase as cities grow,” says Léautier. if proper planning doesn’t exist. Unplanned urbanisation will result in environmental degradation, rural urban migration leading to unemployment and crime, overloading Fortunately, urbanisation does present of physical and social infrastructure as well as widening skills mismatch and inequality. opportunities that can fast-track some of the challenges, such as the use of modern “To take advantage of the dividends of urbanisation, policy makers must ensure technology and innovation. The pooling that urbanisation policies address issues like human capital, entrepreneurship and of financial resources, particularly from industrialisation, as well as the core urban concerns of infrastructure and urban the private sector, is something that form. The emergence of sprawling, car-dependent cities for the next two- or three- governments are beginning to use more billion urbanites will require policies that favor transit-oriented development, green frequently to provide infrastructure. building design and sustainable land use and could help make the current wave of Such PPP initiatives must be devoted to urbanisation part of the solution to the world’s environmental challenges, rather than tapping into the potential for structural part of the problem.” • development. 15
AFRICAN CITIES #02 interview with Jacqueline Moustache-Belle Co-President of UCLG; UCLG-A’s Vice President for Eastern Africa and Mayor of Victoria Copyright: byvalet / 123RF Stock Photo voice of the islands In your role as a UCLG co- at the centre of all key decisions in terms Africa’s destiny is inextricably linked to President, how did you promote of the development of our continent and that of the whole world. Africa’s failure and contribute to the Africa agenda our cities. would be the world’s tragedy: and which and how valuable is it to UCLG? has long been on the sidelines, is now Africa is now widely recognised as the increasingly establishing itself as a major Africa is definitely growing and all continent of the future. Our opportunities player in international life. pointers indicate that this growth can be are infinite and our potential boundless. sustainable as long as our most precious The continent is experiencing profound With an increasing growth rate, resource - our human resource - remains changes but what is very clear is that substantial reserves of natural and energy 17
The UCLG has a key role to play in the sustained growth of Africa, working in close collaboration with other partners like the African Union in building partnerships for innovative solutions to Africa’s main challenges. resources and a young vibrant population, Africa has great opportunities to transform itself into one of the leading economic regions of the world. The UCLG has a key role to play in the sustained growth of Africa, working in close collaboration with other partners like the African Union in building partnerships for innovative solutions to Africa’s main challenges. As the platform for local authorities, we have an indistinct responsibility in strengthening the capacity of our African countries to develop and manage their human capital. UCLG, and more specifically, UCLG-A are well placed to feel the pulse of the people at the grassroots level and ensuring that their challenges are addressed in the most comprehensive way. We have been a key factor in ensuring that socio–economic development programs such as education, employment creation Jacqueline Moustache-Belle especially for youth, skills development, and health aiming at poverty alleviation and inclusiveness make a difference in the lives of people at the local level. What will the African goals be for the World Summit of local and regional leaders to be held in Bogota during October? And how If we want to transform Africa and bring it to even higher levels will this meeting impact on Habitat III? of development, we must start with our cities. No actor should be left behind in this endeavour. The African agenda is therefore UCLG is holding its World Summit in Bogota on 12-15 October critical in the work of UCLG. immediately before the Habitat III Conference. In this regard, we greatly value and welcomed the seven The New Urban Agenda, which is expected to be agreed at Habitat aspirations elaborated under the African Union’s Agenda 2063 III, is a critical opportunity to support the achievement of the SDG and the accompanying plan of action to realise the ambitious, agreed in New York in September 2015, and in particular Goal yet very clear, goals and targets set for the transformation of our #11 that ensures that cities and human settlements are inclusive, continent. Agenda 2063 and the 2030 Sustainable Development safe, resilient and sustainable. Goals (SDG) are key roadmaps that are vital. Expanding urbanisation is a global phenomenon affecting all We believe that all African countries can recognise the challenges countries, particularly in emerging and developing economies. and opportunities presented in Agenda 2063 and will therefore It presents challenges and opportunities – both of which can be be in a position to take ownership of a crucial process that will managed if all actors concerned are well prepared and have a break the mould that has for so long prevented us from writing framework for urban development. our own narrative. Local Governments have a pivotal role to play in this process and The ambitious targets are a clear reflection of the great promise both the Bogota and Quito meetings are essential in the sharing that Africa holds, and Seychelles, as the smallest member of the of best practices, in developing synergies, and partnerships African family will spare no effort in actively playing its part in that can put countries in a position to establish the connection ensuring that we create “an integrated, prosperous and peaceful between the dynamics of urbanisation, demographic changes Africa, driven by its own citizens and representing a dynamic and the overall process of national development. force in the global arena”. This has been by motto throughout my mandate at the UCLG and I spared no effort in ensuring that Promoting good urban governance will also be a key issue at we fully accomplish this goal. both conferences. Urban governance has a substantial impact on 18
the performance of urban areas, and influences overall national development and the consolidation of democracy in a country. islands. An Africa that recognises that when battling climate change, the survival of island states, that are on the front line of We should never lose sight that we can advance global agendas this on-going struggle, is intrinsically linked to the survival of all. in the cities. Cities are well-positioned to help achieve global agreements such as the SDG, the Sendai Framework, and the An Africa with increased connectivity through maritime links and Paris Agreement. investment into maritime corridors for trade will allow us to not only be our own closest and biggest trade partners, but also At a time when much emphasis is on innovative financing, focus allow us to be global players. will also be placed on developing new sources of financing for key projects being pursued in the cities especially in terms I have made it the focus of my work at the UCLG to ensure of infrastructure development. Public Private Partnerships are that the voice of the islands remains strong. To ensure that the increasingly being adopted in many cities and there is a need uniqueness of the islands of Africa is recognised. To ensure that for this new form of partnership to be structured so that it truly our challenges are recognised and partnerships developed to becomes a win-win for all. unlock our true potential. Such goals need to be endorsed by various stakeholders. Who We may be small but this does not mean that our challenges in are those, and what will African leaders need to do to ensure urban development are equally small. On the contrary, small that those goals are achieved? capitals make excellent case studies in terms of how various key challenges like climate change, limited resources and revitalising The whole point of these conferences is for us to develop trade are being addressed and this could be emulated by bigger common positions, share our experiences and collectively capitals. There is still much work to be done but I believe we find solutions that will enable us to address the issues being have a reached a point where we can no longer leave out the identified. Partnerships are pivotal in this common endeavour, preoccupations of the islands in global discussions especially for the UCLG and others. those that concern urbanisation. We will need the buy-in of all stakeholders including governments, Habitat III is being held at a time when the “Africa Rising” concept local authorities, NGOs and various international partners as we is being promoted. What for you are the most significant issues all have a role to play. Once we commit to the declaration of that the conference will discuss in terms of an African scenario, both summits, we need to honour our commitments. or that Africa can learn from? No efforts should be spared by African leaders in our common Fifty years ago, the dream of the founding fathers of the OAU was efforts of building resilient cities. This requires focus and clarity in that of a unified Africa where African States could intensify their terms of the various national development plans while ensuring cooperation and efforts to achieve a better life for the people of that local authorities are empowered and given the resources that will enable them to make cities prosper. Strategies are required to help cities deliver quality public services and education, link people to jobs through accessible transport, At a time when much emphasis and facilitate and sustain an affordable housing supply. is on innovative financing, focus You are also the Mayor of the African island Seychelles. What will also be placed on developing trends are you noticing in terms of city and urban African development? Have you played a role in pushing that agenda new sources of financing for at global events? key projects being pursued in While we each have our unique culture and heritage, island the cities especially in terms states intrinsically share some fundamental commonalities. I am of infrastructure development. the Mayor of one of the smallest capitals in Africa and the world. Public Private Partnerships are I highlighted the importance of Agenda 2063 to UCLG. As island increasingly being adopted in nations, we believe very strongly that Agenda 2063 vision for Africa is a forward-thinking aspiration that all of Africa should many cities and there is a need for see itself reflected in. Island states must see themselves, and the this new form of partnership to be dreams of our nations, reflected within this modern dream for our continent. structured so that it truly becomes a win-win for all. For Seychelles this dream is one of a cosmopolitan Africa that treasures and appreciates its smaller, but no less valuable, 19
the continent. This was at a time when Africans were on the very Quito also provides us with another opportunity to break the brink of overthrowing colonisation and independent sovereignty perception that Africa is a continent of only challenges. We need African States were becoming realities. to bring innovative solutions to the table and forge stronger south-south cooperation to bring about the change and future More than 50 years later this dream is still very much alive. We we want. want a unified continent, where our people remain inspired, innovative and are masters of their own destiny. The global You are the first woman to have a co-Presidency role within context and political paradigm in this past half century has UCLG. What has this meant to you, and how does this impact changed considerably but we have been able to adapt to the on African women? changes and become more than ever committed to our goal of working together for the same end. It has been an honour for me to serve Africa on UCLG and I believe it was a victory for all African women when I was This unity, in the aspiration of our continent, will be important elected for this post. I truly appreciate the opportunity that I was at Habitat III so that the African agenda and priorities occupy given in promoting the African agenda on UCLG and I am of an important place at the Quito deliberations. The strategy the opinion that my election will add to the unwavering efforts document Optimising the Urban Advantage, which emerged deployed by many African women and men working towards from the fourth edition of the African Ministerial Conference gender equality in Africa while ensuring that the women of on Housing and Urban Development (AMCHUD4) in 2012, Africa are empowered. African women is a strength of our encapsulates the various issues of importance to our continent continent which is often overlooked. The time has come for and it will be our responsibility to ensure that we acquire the us to valorize our strengths, if we are to move forward as a necessary support to ensure its effective implementation. continent. • 20
AFRICAN CITIES #02 Attra Estate 22
Precipitously, the ctive Real horizon of the city of Accra is changing. The Capital is now Investment West Africa’s hub of real estate. From government housing projects to roads Hub and highways to redevelopment of the country’s main entry and exit points by air, to private real estate development, Ghana is seen to be paying attention to building the necessary infrastructure for accelerated development. by PAA SWANZY Timeworn lorry parks are being neglected for modern office blocks. Tumbledown colonial government bungalows that served past dignitaries are being pulled down to make way for world class residential estates. Estate developers are rushing to buy large tracts of land on the fringes of Accra at bargain prices to keep in their portfolios for future real estate development. A drive from Accra Central on Independence Avenue all the way to Tetteh Quarshie reveals huge billboards announcing all manner of real estate projects currently under construction. The beaches are also getting their share of the rush to build and sell property. Someone thought Labadi Beach might one day become something similar to the beaches of Palm Beach, Florida, Rio de Janeiro or Waikiki, Hawaii and Viola! A new project is born by the name, La Beach Towers: this 18-story apartment complex is being built in three phases with 23
phase 1 having 66 units. Beach lovers are opulent business centres in West Africa, falling over themselves to stake their turf. this ambitious project by Dream Realty is Wonda World Estate has also secured a It is the area of Accra a mixed-use property comprising luxury site along the beach for its beach front development project, which they say will called Airport City office and hotel suites and retail space, all offering leisure, food, business or be one of a kind. that truly reflects the hospitality services. It is the area of Accra called Airport amount of investment The Centre comprises a 200 hotel room City that truly reflects the amount of dollars, from both local block, 13 floors of office space, five floors investment dollars, from both local and foreign sources, pouring into real estate and foreign sources, of parking, a food court, five cinema theatres, world-famous branded shops development activity in Accra. The speed pouring into real estate and supermarkets, and space for clinics, at which construction projects are taking off in this part of Accra is remarkable. development activity in banks and world-class tenants. Next door, at what was the Accra Race Course, Accra Kempinski Hotel Gold Coast City has an all Marina Mall, a shopping mall and office new five-star 269-room hotel to compete complex owned by the Marina Group of with the Moevenpick Ambassador Hotel Burkina Faso, was completed barely two and Novotel (now Accra City Hotel) in the and a half years ago. Shortly after came Walking distance away is Atlantic Tower, vicinity. South Africa’s RMB Westport that a year a modern 13-story architectural office ago completed its flagship mixed-use edifice, sited on a two-acre land owned by The banking industry is not excluded from property named Icon House in the same the Meridian Group. the fray either. Agricultural Development Airport City, with Stanbic Bank already Bank erected its new corporate signed up as anchor tenant. The African Sun Hotel, in this same enclave, headquarters (Accra Financial Centre) was built by Trassaco. Other name-brand next door to the Moevenpick Ambassador Next door is Nester Square, another mixed- international hotels are gunning for space Hotel, while Societe-General has moved use office tower and retail development, in the same vicinity because of its proximity into its new headquarters along the Ring being built for Ernest Chemists by the to the Kotoka International Airport; the Road, a walking distance from the famous construction firm DeSimone Ltd. The eight- main entry and exit points to the country Busy-Internet. floor building is designed to accommodate by air. Nester Square, SSNIT Emporium, a balance of commercial offices, retail and Manet Towers are among the new Other banking structures are rising shops and services. It has houses chic and edifices in the airport region. and it is definitely a sign of the positive upscale eateries and shopping centres. economic trends in the country currently. The retail and commercial areas are also In the Oxford Street area of OSU on The very first office park project in Ghana, environmentally managed to comply with Kuku Hill, a 1.2-acre piece of land has Capital Place is being built by Mobus international standards. been turned into a 120-unit apartment Property Development in the Airport complex called Chateau Towers. This Residential Area. This office park is a Tony Sekyere is the Head of Property project is being developed by Hollywood cluster of buildings with multiple offices Management at facilities management International Developers; their very first offering various professional services in a firm, Broll Ghana Limited. He asserts that in Ghana. Preceding this development commercial park setting. the recent oil and gas boom in Ghana is a year before, GLAHCO had completed part of the reason why there’s been this a beautiful 13-storey shopping mall and It is in the Cantonments, Airport surge in high rise building complexes. hotel complex on Oxford Street called The Residential and Ridge areas that the He says that the oil and gas discoveries Oxford Street Mall, whose anchor tenant fiercest competition for high-end have not only increased the number is Shoprite, a supermarket brand from residential real estate development is of businesses in the country but also South Africa. currently occurring. As the most desirable inspired the desire by corporate entities part of Accra, particularly favoured by to have decent offices, which will serve Another addition is No. 1 Oxford Street, foreigners, apartments, condominiums their comforts as well as their clients. a high-end luxury residential, commercial and town-home projects are fiercely being Mr. Sekyere’s outfit Broll, which is owned and recreational development property erected. The rush to build in this area is jointly by Social Security and National that is being constructed by Wonda World not surprising, considering the high rents Insurance Trust, State Insurance Company Estates. properties command. and the Broll Group of South Africa, manages properties in the $100 million- Not to be surpassed, the central Expect to buy a 3- to 4-bedroom plus bracket, with most of them located in business district of Accra is hosting apartment in such an area from $450,000 Accra. The A and C Shopping Mall, West some construction activity. The sprawling to $600,000, with rentals around $3500 Hills Mall, the Achimota Retail Centre, 13-story Octagon Business Centre in to $4500 unfurnished. A one-acre piece the Accra Mall, are some of the other big the heart of Accra is almost complete. of land in this area costs between $2.5 malls being managed by Broll Ghana. Dubbed as one of the most expansive and and $3-million and a developer need only 24
build apartments or condos sky-high to residential properties in the Cantonments high in the country today, just as make a profit. and Ridge areas. It may surprise many demand for high-end residential real people that it is possible to find a estate continues to be brisk. Accra Meridian Apartments II, Kwarleyz, Sloan $2-million penthouse apartment to buy Mall, A&C Mall, Marina Mall, Oxford House and Villaggio Vista are all projects in today’s Ghana. Visit the Villaggio Vista Street Mall and the all new Achimota that have been completed at the Airport and La Beach Towers to explore. Retail Centre are not proving enough Residential area, while the Switchback to satisfy the growing demand for Park Project, Aurora Apartments, Goldkey It is obvious that the demand for office, retail space in a city with a population Properties and Devtraco are building hotel and retail space is extremely of five-million. Infrastructure renaissance reflects the needs of the people The capital Accra is seen to be in the lead for an infrastructure The government has wide open arms for welcoming foreign renaissance. A quick stop around the main airport city area is a investors into the housing sector. The huge concessions granted testament to such ongoing development in infrastructure. Estate by government to the South Korean investor STX to build 200,000 development is fast on the ascendancy in the city, one key centre houses, before the project collapsed under boardroom wrangling, of attraction - The Kwame Nkrumah Circle, which is a hub for is ample evidence of the open-door policy of government to attract informal and formal business activities - is experiencing a facelift foreign participation in this sector. with the Brazilian construction company Queiroz Galvao. This key intersection in the major road networks, and its relevance and This policy is given an acronym PPP (Public Private Partnership) prime location in carrying goods and passengers, has become a and foreign companies like Brazilian Construtora OAS, Nairobi bottleneck in the business district carrying some 84,000 vehicles based Shelter Afrique and the Addoha Construction Company of a day. The Euro 74-million project, scheduled to be completed in Morocco are taking advantage of this huge opportunity. June 2015, has been bumped for completion in September 2016 but progress indicates that even that deadline will be missed. The Accra’s development reflects the needs of the rest of the country, Brazilian government loan-facilitated project will save Ghana and what is being achieved in that city can be replicated in some US$25-million annually according to the President of the Takoradi, the oil city, Kumasi, the garden city, Sunyani, Tamale, Ghana Institution of Engineers, Magnus Lincoln Quarshie. Ho, Cape Coast, and so on. With a vibrant economy, a rising populace, a sophisticated and well-read professional class, the One sector literally begging for investors to explore but which has demand for a myriad of real estate development hugely outstrips largely been ignored is the warehousing industry, in desperate supply. need of storage for imports and exports as a result of the expansion of the ports and harbors. “It is a sector desperately waiting to be explored, and the Ghana Investment Promotion Center (GIPC) is doing everything humanly Another overlooked sector is low-end real estate. Even though possible to attract foreign investment into this sector,” says Mrs. demand for middle-income and low-end residential real estate Mawuena Trebarh, CEO of GIPC. is extraordinarily high, supply in this sector is extraordinarily short because of the lack of construction financing and the high costs of “If you are an investor with a shopping list of emerging countries building materials. to plough your investment dollars, Ghana should be on the top of that list,” says Dominic Akwetey Monney, Managing Director of Property developers in this sector have to settle for the practice Newmoncreek Properties Limited. called “build-on-request”, in which houses are only built when a request is made by a potential buyer; the buyer pays for the house For a country widely acknowledged to have moved from low- in installments as construction progresses. The industry practice is income to lower middle-income grade (according to The World then for builders to buy large tracts of land, subdivide and sell as Bank classifications), with a reputation for economic and political serviced plots, from which they derive income to start the build-on- stability, Ghana is becoming the go-to investment destination as request process. well as a springboard for investors from all over the world, seeking a safe haven to place their investment dollars on the African Apart from RegimanuelGray Ltd, RSS Developers, Devtraco and continent. a handful of others, several members of the Ghana Real Estate Developers Association (GREDA) can only survive in business If this trend continues, the confidence, peace and tranquility mainly through building on request, due to the reluctance of local the country has chalked over the years should bring in more banks to grant construction loans and mortgages. This lack of investment, some of which should trickle into the real estate sector. construction financing has created a huge gap between demand This trend has happened in so many other countries all over the and supply in the middle-income and low-end residential real world, the US being a classic example, so the question is: can the estate sector. Consequently, it is in this regard that some creativity investor community can stay away from a country like Ghana with is most needed. a housing deficit of 1.7 million housing units? • 25
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