Page 65 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

Prior to project implementation, and despite the market’s business volume, products and services
were exchanged in an open place without any sheds, storage facilities, toilets, water supply or other
key facilities prior to the implementation of this project. Women were significantly affected due to
regular trading with their infants in unhygienic areas that were prone to diseases. Due to the lack
of permanent market facilities, the district councils and villages were unable to collect a sizeable
amount of fees and levies, resulting in a significant loss in economic and trade opportunities. The
project was designed to address these challenges and transform the village into a genuine regional
centre for cross-border trade.

Sustainable Development Goals impacts

SDG 1 and 8: Poverty reduction and sustained growth through the creation of productive and
decent employment.

SDG 5: Women empowerment by providing greater economic opportunities to women in the
community.

SDG 9: Use of modern financial technologies to improve financial transactions.

SDG 17: Partnership between the UN, local authorities and private enterprises to build the market.

People-first elements

• Localization of the SDGs: The project addresses SDGs – especially economic growth and women
economic empowerment – because of the increased participation of women in the economic
activities. Seventy-one per cent of funded stalls were allocated to women entrepreneurs
(supporting 150 youth and women), contributing to increased security and a rise in household
income. Furthermore, the Womens’ Association was allocated shares to take up ownership of
the market SPV.

• Support to the border communities: Surrounding communities benefit significantly and enjoy
locational comparative advantages, especially in the case of women who cannot travel long
distances because of other family care work and have insufficient capital to engage in formal
business.

• Maximized economic potential: The market has a transformative effect on the Muhange villages,
emerging as a vibrant cross-border economic town within the rural Kakonko district. The village
has transformed from having one government building to more than 24 buildings, offering
market users and residents a wide range of products, including agricultural products and fast-
moving consumer goods.
• Structural transformation of the local economy: The market has created additional demand and
boosted the supply of production and services in an area characterized by subsistence farming.
Construction of facilities such as warehouses for storage has improved operational efficiency
through reduced transportation, handling and storage costs. KDC own-source revenues from

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