Innovative approaches to funding sustainable urban transformation in Sub-Saharan Africa
Cities across Sub-Saharan Africa are increasingly vulnerable to climate change, with two-thirds considered at “extreme risk”. Yet, these same cities, particularly smaller and secondary urban areas, also hold significant potential to drive sustainable development. Through the Covenant of Mayors in Sub-Saharan Africa (CoM SSA), local governments are acting by developing Sustainable Energy Access and Climate Action Plans (SEACAPs) and seeking ways to finance their implementation.
Building on years of support, the CoM SSA initiative is now focused on helping cities move from planning to implementation, particularly by unlocking access to climate finance. This includes support in understanding the finance landscape, preparing robust projects, and building partnerships with funders and investors.
A recent publication highlights solutions adopted by cities to finance SEACAPs, from reducing planning costs through inter-municipal cooperation to using public-private partnerships, risk-sharing mechanisms, and community-based funding models.
Key lessons include:
- Diversifying financial sources improves resilience and reduces dependency. This includes crowdfunding, climate funds, local capital markets, and private investment.
- Empowering communities through pooled resources, microfinance, and participatory planning ensures sustainability and buy-in.
- Using digital technologies helps cities manage climate action more efficiently and affordably.
These examples illustrate that while challenges remain, Sub-Saharan African cities are making progress in creating bankable, inclusive, and resilient climate solutions, paving the way for sustainable urban futures.
For more information, contact:
Project Lead – Climate, Energy & Urban Development
