African Cities Pioneer Innovative Financing to Unlock Urban Potential

Addis Ababa, 25 September 2025 (ECA) - Confronted by rising populations and strained budgets, a group of African cities is leading a collaborative charge to find new sources of revenue and finance critical urban services.

The initiative, driven by the United Nations Economic Commission for Africa (ECA) in partnership with UN-Habitat and the UN Capital Development Fund (UNCDF), is helping municipalities expand their "fiscal space" to build more inclusive, resilient, and sustainable cities.

A recent regional webinar brought together officials from six focus cities-Addis Ababa, Dar es Salaam, Kigali, Lusaka, Nairobi, and Yaoundé-to share successful strategies following in-depth assessments of their financial health.

"Cities are embracing innovative ways to expand fiscal space as a strategic move toward sustainable urban development," said Atkeyelsh Persson, Chief of the Urbanization and Development Section at ECA, in her opening remarks.

The peer-learning session highlighted a range of practical solutions being deployed across the continent. Key innovations shared include:

• Leveraging Public-Private Partnerships and exploring the issuance of municipal and green bonds to fund infrastructure projects.

• Adopting digital technologies to improve revenue collection and streamline services.

• Introducing unified business permits and strengthening asset management to boost local revenue.

• Enhancing accounting and reporting systems to improve transparency and citizen engagement.

By creating a dynamic platform for policymakers and practitioners to exchange best practices, the project aims to build a foundation for stronger regional partnerships. This collaboration is seen as vital for unlocking the potential of African cities to drive national development, even in the face of growing fiscal constraints.

Issued by:Communications SectionEconomic Commission for AfricaPO Box 3001Addis AbabaEthiopiaTel: +251 11 551 5826E-mail: [email protected]