The African Development Bank (AfDB) will provide up to two billion dollars in lending in 2024 for the development of cities and municipalities across Africa. The funding will be used to modernize and strengthen city infrastructure and planning, thereby supporting anticipated population growth and economic development.
Leveraging urban and financial support already provided by the development finance institution (two billion dollars per annum), the AfDB has committed to facilitating new investment and project preparation pathways for cities and municipalities across the continent.
Additionally, the AfDB has approved several facilities, including a financing package spearheaded by the Urban and Municipal Fund (UMDF), which offers technical assistance and support for capacity building, urban planning, governance and municipal fiscal management for 15 cities.
The UMDF has mobilized $50 million between 2023 and 2027 for the development of cities in Africa. Of the total fund, 60% will be dedicated to urban project preparation, 20% to urban planning and 20% to municipal access to financial support ecosystems.
According to AfDB President Akinwumi Adesina, securing investment for the development of cities in Africa will help catalyze economic growth, and “while Majors [in Africa] are working hard to tap into this and other sources of public funding, greater priority needs to be given to attracting investments into cities.”
