Local Strategies and Policies Sessions

SOU-65 | PUBLIC PRIVATE PEOPLE PARTNERSHIPS (PPPs) AND SOLID WASTE MANAGEMENT AS VEHICLES FOR PRIVATE SECTOR INVESTMENT IN INFORMAL SETTLEMENTS: PRESENTING AN INNOVATIVE PPPP FROM KISUMU, KENYA

19 May

19 May

14:30 to 16:00

Venue: Room 13

LEAD ORGANIZER

United Cities and Local Governments of Africa

Tel: +212(0)537 260 062

Email: info@uclga.org

Web: https://www.uclga.org/

PRESENTATION OF THE SESSION

UNITED NATIONS HUMAN SETTLEMENTS PROGRAM ( UN-HABITAT) &THE DEPARTMENT OF ENVIRONMENT (CITY OF KISUMU)
It is predicted that over half of the global population will be living in cities by 2050, of which already 60% of the urban population in Africa lives in informal settlements [1]. In Kenya, more than 50% of the urban population lives in unplanned settlements [1] . However, the economic importance of this large market remains largely untapped by formal actors, with companies and investors lacking the enabling environments to support business cases targeting informal areas. In addition, limited effective programming is carried out by development partners to help formalize the informal sectors, but engaging the business community to address the informal sectors is critical to realizing sustainable development goals in African cities. To understand the opportunities for private sector engagement in slum upgrading and to upscale interventions and financing and technical partnerships, UN-Habitat, through the Participatory Slum Upgrading Programme [2]. facilitated four market studies in Senegal, Nigeria, Kenya and Cameroon [3]to analyze the investment opportunities in informal settlements and slums. For Kenya, the study puts the purchasing power of households in informal settlements at USD 6 billion, 7% of GDP, which proves the significance of the informal markets' untapped potential. The market studies also found that the demand and purchasing power in slums will continue to grow, and that there is a broad range of opportunities and already available innovative solutions by the private sector for housing and urban basic services, which constitute bankable and investment-ready projects. It is widely accepted that the private sector is needed and better suited for sustaining rapid growth and is a powerful weapon in the fight against poverty. Private sector growth creates jobs that use labor, which is the main asset of the poor. Thus, facilitating and promoting the entry of private sector as a partner in urban development unlocks the potential of the informal sector and its labor market which is essential for strategies to promote pro-poor growth and reduce poverty in African cities. While often private sector has their niche market and resource base based on potential profitability, the role of international frameworks and policies and finance, to facilitate and forestall potential risks associated with investments into the informal sectors and settlements, cannot be understated. The session will therefore bring perspectives from different angles and identify strategic policy, financial and technical entry points for partnerships that can be tapped into in addressing urban service delivery and job creation for the urban poorest, at scale. The session objectives are: 1)      to illustrate some of the existing policy, program development and financing models that support strategic partnerships with the private sector toward development of informal settlements, and 2)      to stimulate new development initiatives for slums in Africa through sharing proven methods and partnerships for engaging local authorities and private sector entities in city-wide urban service delivery. The session will demonstrate the importance of pilot projects as stimulators for the development of enabling government strategies, policies and initiatives that support private sector investment through strategic partnerships and it will present an innovative partnership model [4]for a community-based municipal solid waste management (MSWM) system through a PPPP in slums in Kisumu. This partnership facilitates an entry point for private sector investment for urban service delivery within a replicable partnership on a city-wide scale and, therefore, relevant for all African cities in support of the SDG 11.1.  
settlements in the City of Kisumu in Kenya. The project is designed to showcase how to establish a financially sustainable Public Private People Partnership (PPPP) as a replicable model. The model uses MSWM to create livelihood opportunities for the urban poor, thus enhancing living conditions in informal settlements and slums. The key lessons learned on the linkages between waste recovery and job creation will be presented and how a waste recovery center can serve communities by creating jobs and improving the social dimension of waste workers, the municipality by providing the architecture for a partnership with the private sector which, in turn, provides skills transfer and material investment through a fair-trade platform, the private sector, by opening up new investment opportunities and market access and necessary policy support, and the environment, by building on the principles of a circular economy that benefits all. Lack of evidence-based data hinders the development of strategies and constrains investment in infrastructure and service expansion, leading to insufficient or absent basic urban services, especially in informal settlements. The session will present the importance of data for job creation from waste recovery and introduce tools developed by UN-Habitat to address the data gap in the waste sector. The Waste Wise Cities Tool assesses a city's solid waste management performance through SDG 11.6.1 indicator monitoring and data supporting investment decisions. The tool involves the actors of the solid waste chain, formal and informal, to plan interventions addressing policy and infrastructure gaps. The session will present how the tool was applied in Kisumu and other municipalities and how it informed urban waste sector strategies and the development of the business case for the Turning Waste into Jobs partnership. The session will also present a ready methodology and strategy for private sector engagement to interested government partners who are ready for replication of Public-Private People Partnerships (PPPP) at the city-wide level and who are prepared to develop a pipeline of bankable and investment -ready projects.
The case study to be presented to demonstrate a replicable partnership model is the 'Turning Waste into Jobs' [5]multi-partner project that utilizes private sector investment and skills transfer toward a community-based waste management in low-income urban areas in informal [1] Reference Data : Share of urban population living in slums in 2018, by region [2] The Participatory Slum Upgrading Program (PSUP) was initiated by the Secretariat of the African, Caribbean and Pacific (OACPS) Group of States , the European Commission and UN-Habitat in 2008 to recognize the widespread and chronic urban poverty in slums and informal settlements. [3]The market studies have analyzed urban data and identified business opportunities in informal Settlements. Download the market studies here . [4] Private Sector Investment in Informal Settlements : Partnerships for Innovations and for Creating Investment Opportunities – Paper presenting the case study in Kisumu on page 9 [5] Turning Waste Into Jobs is a multi- partner project initiated by UN-Habitat, through the Participatory Slum Upgrading Programme, and implemented in partnership with the Department of Environment of the City of Kisumu and the private sector partner Mr. Green Africa  

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