Innovative Financing and Local Development in Ghana

Development is a continuous process that requires new and additional ideas for financing systems. For this reason, the search for development finance in local and national development is necessary. This study seeks to investigate innovative financing to produce knowledge resource for improving local development in Greater Accra and Greater Kumasi Metropolitan Areas of Ghana. Panel data for ten years (2011-2020) were collected for the two Assemblies from Composite Budgets, Annual Reports, and others on Public-Private Partnership and Waste Management depositories through interviews and internet search. Data were processed using Microsoft Word and Excel 2013 and STATA SE 14 Versions. Data analysis techniques employed were narrative, standard deviation, correlation coefficient and regression. The findings and analyses of results are that the coefficient of variation of uncompleted projects for AMA and KMA is 37%. Hausman test is not significant since fixed effect model of panel data is the same as random effect model, both can perfectly model the pattern in the data and established statistical validation of the study. A unit increase in innovative financing would result in 47.7 percent increase in Assembly development. By implication innovative finance has a statistically significant positive effect on local development. Furthermore, an improved financing system recommended for MMDAs is waste to wealth conversion through revenue generation, jobs creation and clean environment on sustainable basis. Waste as seen as a threat to society would now become an opportunity. Additionally, the use of appropriate technology in local development is necessary.