Co-creating a Sustainable Framework for Financing Community Infrastructure in a Sub-Saharan African City

Abstract

Over the years, the financial sector has evolved to occupy a central role in the world's economies by expanding in scope and remuneration—a phenomenon called financialisation. As the African continent continues to grapple with the effects of globalisation, technological advances, for example, blockchains & digital currencies, and the emergence of new economic powers, the financial landscape is likely to become increasingly complex. The critical issue is that, due to the growing population in urban centres, African cities are facing an increasing infrastructure gap estimated to reach US$68 billion annually by 2040. However, there is a constraint in the government's ability to fund, and it is expected that 30% of the required funding will be provided by private investment. On the other hand, communities are key to the strengthening and functionality of African cities. However, research shows that in Lagos, the level of physical and social infrastructure is low. While many approaches have been implemented/adopted to cope with these challenges, ranging from individual to household to community and City levels, the study focused on how low-income neighbourhood communities can better respond to shocks and stresses and how they raise funds for supportive infrastructure during these occurrences. The study was done by involving all relevant stakeholders in a people-first, public, private partnership (PPPP*) and using a coproduction design (bottom-up approach) that includes analysis and participation. The study seeks to advocate for policies that support lower-level participation thus, promoting a more inclusive and equitable urban development in Lagos and similar megacities.