AfDB, UN-Habitat Partner to Accelerate Sustainable Urban Growth in Africa
The African Development Bank Group (AfDB) and the United Nations Human Settlements Programme (UN-Habitat) have signed a landmark agreement to fast-track sustainable urban transformation in Africa, amid growing urban challenges and opportunities across the continent.
The Memorandum of Understanding (MoU) was formalized on July 1, 2025, on the sidelines of the Fourth International Conference on Financing for Development (FFD4) in Seville, Spain. The new pact builds on a 2006 partnership between the two entities in the water and sanitation sector and now expands their joint focus to include urban governance, housing, municipal finance, and infrastructure development.
AfDB President Dr. Akinwumi Adesina emphasized the importance of unlocking capital markets to finance urban growth. “Cities are the engine of growth, and we need to mobilize more private capital. This partnership with UN-Habitat will help rethink how we build cities,” he said.
UN-Habitat Executive Director Anacláudia Rossbach echoed the sentiment, noting that Africa’s urban future stands at a crossroads. “Urbanization in Africa can either drive prosperity or deepen poverty. Our renewed collaboration will support cities to be hubs of resilience, equity, and climate action,” she stated.
The partnership outlines joint action plans to deliver technical assistance, policy support, and capacity building to local governments. It also includes a shared commitment to mobilize financing through regional and global platforms such as the World Urban Forum and Africa Investment Forum.
The AfDB has scaled up its urban initiatives in recent years, including the launch of a dedicated Urban and Municipal Development Fund and a division specifically focused on urban solutions. Notably, AfDB and UN-Habitat recently teamed up to develop the Eswatini EcoCity Masterplan, aiming to deliver sustainable housing and economic opportunities for over 100,000 people.
With Africa’s population projected to reach 2.4 billion by 2050, and more than half of urban dwellers currently living in informal settlements, the pressure on infrastructure and services is mounting. The renewed AfDB–UN-Habitat partnership is poised to help African cities address these challenges head-on and harness urbanization as a driver of inclusive, climate-smart development.
