Document: LED Funding Database and Baseline LED Project Funding Strategy

In order to provide the LED support that leads to growth in jobs, income, and tax base, the City must find ways to fund LED initiatives. At present, Johannesburg funds its LED and infrastructure projects primarily through bank loan financing or direct municipal general fund budgets. This is not the most effective or even the most common approach to funding such initiatives. The City is paying a far higher price to finance its infrastructure in this fashion than if it were able to use its municipal bonding capacity. At the same time, direct financing from the general budget only serves to tie-up large quantities of City budget that could be used for investment and for direct delivery of municipal services. 

The Department of Economic Development (DED) is seeking alternative sources of funds to help finance LED projects and initiatives that support economic development in the city. There are a variety of mechanisms that municipal governments use worldwide to fund LED projects and leverage private investment. Those mechanisms are not the focus of this study, but they are nevertheless described as part of the solution. The focus of this study is rather to develop a database of external funding sources and partnerships, and to establish a strategy for accessing these external funds.