Tamale leads in Municipal bond

Accra, Nov. 29, GNA - Tamale Municipal Assembly (TMA) is poised to set the pace for enlistment on the Ghana's capital market to raise additional capital for development of its area. By that Tamale would be the first to issue a Municipal Bond in Ghana.

Announcing this on Wednesday in Accra, Mr Stephen Asamoah-Boateng, Minister of Local Government, Rural Development and Environment, said the Temale Municipality has taken the initiative, which all others would soon follow.

Speaking at the signing in Accra of a Memorandum of Understanding between the Government and the United Nations Habitat Settlement Programme, Mr Asamoah-Boateng said: "Tamale has gone far to go public to mobilize funds for its development activities."

He said the Government recognized the benefit of the issuance of Municipal bond and would, therefore, ensure that the importance it deserved was attached to it.

He said a draft policy on municipal finance and management had been prepared and was awaiting cabinet consideration. Touching on the MOU, Mr Asamoah-Boateng said the Ministry was prepared and was looking forward to sharing ideas on municipal housing development and management with the UN Habitat in the country. He said the Government would welcome any technical support on policy formulation from the UN Habitat.

Signing the MOU on behalf of the Government, Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, said the document provided a framework of cooperation and understanding to facilitate slum upgrading in the country.

He explained that it was designed to lead and coordinate technical cooperation and financing initiatives to develop bankable projects that promoted affordable housing for low-income households, upgrading of slums and the provision of urban infrastructure.

Mrs Anna Tibaijuka, Executive Director, UN Habitat, who signed on behalf of the UN, noted that as far as housing was concerned the future concentration should be on urban areas.

She said more people were moving from the countryside to urban centres, which required the provision of social amenities to match up with their settlement. She said in meeting such needs there was the need to maintain a balance between the urban and rural areas adding; "we must prevail over chaotic urbanization in Africa".