Financing Sustainable Urban Development

Presenting policy messages of initiative requested by the European Parliament, implemented by European Commission, UN-Habitat and EIB, supported by the International Growth Centre, identifying relevant measures to help mobilize financing for sustainable urban development

Fuelled by population growth and rural to urban migration, urbanisation in Sub-Saharan Africa is rapidly increasing – entailing massive needs for investments in urban infrastructure. Africa urbanises at lower income levels and without the same productivity increases as seen in other regions. More than half of residents in these cities live in informal housing, and three-quarters of people working there are unemployed or rely on informal jobs. Thus, the society is facing a huge challenge in providing infrastructure and basic services for liveable and productive cities accommodating the rapidly growing urban population. 

The initial phase of this initiative has been dedicated to exploring the crucial issues to address the above. Whilst the study identifies areas where more work is needed, evidently there is a nexus that connects trajectory of economic transformation, multi-level governance, and financing urban development. The policy brief centres on three core issues: improving investment planning, raising local revenues, and enhancing access to external finance.