New Form of Urban Regeneration Financing in Ghana: A Case of the Kotokuraba Market Infrastructural Facility in Cape Coast

Lewis Abedi Asante

AfRES from African Real Estate Society (AfRES)

Abstract: This study scrutinizes the financing approach that the municipal authority in Cape Coast adopted in funding the regeneration of its main market, the Kotokuraba market. The study employs in-depth interviews to gather primary data from bureaucrats, appointed and elected officials of the Cape Coast Metropolitan Assembly as well as the market queen, commodity leaders and traders at the Kotokuraba market. Findings revealed that, contrary to the emergence of public-private partnership in financing urban regeneration in Africa, the municipal authority in Cape Coast contracted a 25-year loan from the Exim Bank of China, guaranteed by the central government, to fund the regeneration of the Kotokuraba market. However, upon completion of the market, the determination of the rents of stores was not based on the loan amount and term; rather, rents were determined by rental values of comparable stores and stalls in the central business district and the socio-political dynamics in Cape Coast. Consequently, officials in Cape Coast are skeptical about the ability of the municipal authority to pay back the loan within the stipulation period. The municipal authority is already planning to notify the central government to absorb the loan. The implication is that this new form of urban regeneration financing is unsustainable for funding projects in relatively poor cities, where municipal authorities may have difficulties charging realistic rates.

Keywords: Cape Coast; Financing; Ghana; Market; Urban Regeneration (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2018-09-01
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Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:afres2018_120

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