The collaboration intend to help shape cities that are not only growth engines but also places of equity, resilience, and climate action for all residents.
The African Development Bank Group (AfDB) and the United Nations Human Settlements Program (UN-Habitat) have signed a new Memorandum of Understanding (MoU) to enhance their collaboration and accelerate sustainable urban transformation across Africa.
The agreement was formalized on July 1, 2025, during the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain.
It aimed to jointly develop action plans that combine technical assistance, policy support, capacity-building, and knowledge exchange for local governments in four key areas: urban governance, housing, municipal finance, and infrastructure development.
This renewed MoU updates an earlier agreement from 2006 that focused on water and sanitation collaboration between the two organizations.
Africa’s rapid population growth and urbanization — with projections estimating the continent will reach 2.4 billion people by 2050 — brings both opportunities and challenges.
Currently, more than half of urban residents live in informal settlements without basic services, adequate housing, or climate-resilient infrastructure, putting increasing pressure on local governments.
Through this strengthened partnership, AfDB and UN-Habitat aim to help cities respond effectively to these challenges and harness urban growth as a driver for sustainable development.
African Development Bank President Akinwumi Adesina said, “I believe that there are ways that we can use the capital markets to develop cities much better. I am delighted that the Bank and UN-Habitat are partnering on the development of cities — I am very excited about this partnership.”
He added, “Cities are the engine of growth, and we need to mobilize a lot more private capital in the development of cities, which will require a different approach from the conventional public sector capital.”
Anacláudia Rossbach, Executive Director of UN-Habitat, emphasized the importance of inclusive urban growth, saying;
“Urbanization in Africa can either be a driver of prosperity or a deepening of poverty and exclusion. Through this renewed collaboration with the African Development Bank, we aim to help cities become engines of resilience, equity, and climate action, leaving no one behind.”
The African Development Bank Group has significantly expanded its urban development portfolio in recent years, including establishing a dedicated urban development division and creating the Urban and Municipal Development Fund to support African cities in delivering transformative, climate-resilient urban solutions.
Recently, AfDB and UN-Habitat signed a service agreement to prepare the Eswatini EcoCity Masterplan.
This integrated urban and agricultural initiative aims to provide sustainable housing and create economic opportunities for over 100,000 people in Eswatini.
As part of their joint efforts, the two organizations also plan to coordinate to leverage key regional and global platforms — such as the World Urban Forum and the Africa Investment Forum — to mobilize resources for urban development in Africa.
Africa’s urban transformation is at a critical point. With this collaboration, AfDB and UN-Habitat intend to help shape cities that are not only growth engines but also places of equity, resilience, and climate action for all residents.
