The planned gazetting of municipal bond issuance regulations this month will come as a major step forward in the country's bid towards self-reliance as underlined in the growth blueprint, EDPRS II.
The bonds are an innovative tool designed to help districts raise funds on the stock market to finance development programmes, which will ease pressure on the central government budget. Districts can raise funds for, say, infrastructure projects and other community-based development initiatives through bonds.
The beauty of this approach is that it involves communities in the development of their areas both as investors and project implementers. This means more jobs, increased household incomes and improved livelihoods since local authorities will more likely fund projects that empower residents and facilitate trade.
When districts start issuing bonds, the local bourse will be revitalised, thanks to the increase in investor figures.
However, as we wait for the legislation, concerned authorities should sensitise the masses and local governments to prepare them to participate. It's important to note that some district leaders do not know anything about bonds or how they can use them to raise development capital. The onus is now on the
Local authorities will also have to look for credible collateral to benefit from the initiative and prevent such scenarios as the fate of US city of
Let's have safeguards against such risks to benefit maximally.
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