On Thursday 7 and Friday 8 July 2022, partners and donors of the African Development Bank’s Urban and Municipal Development Fund (UMDF) met in Brussels at a meeting hosted by the Wallonia Export and Investment Agency. At this annual meeting, the oversight committee examined the UMDF’s results and strategy and how to mobilize new funding to support African cities. The donors include the Nordic Development Fund, the Swiss State Secretariat for Economic Affairs, and the Wallonia Export and Investment Agency. The Danish Ministry of Foreign Affairs and Spain attended as two prospective donors.
The committee reviewed the Fund’s first three years, including its interim report for 2022 and its partnership activities, and discussed experiences in urban development from Asia, Latin America, and Europe, which will serve as inputs to the Fund’s work. In addition, the committee was briefed on the progress of the Fund’s evaluation that is being done at the request of the donors to draw lessons and produce forecasts for the future.
Hosted and managed by the African Development Bank, the Urban and Municipal Development Fund provides support in 18 projects in cities across 15 countries in Africa to improve urban planning, good governance, and infrastructure project preparation. Its City Program provides long-term technical assistance to municipalities to bring about transformative investment projects and channel their financing. The meeting resulted in new financial commitments from existing contributors that will increase the budget from $5 million to $35 million in the coming months and ensure ongoing operations until 2026.
Mike Salawou, Acting Director of the African Development Bank’s Infrastructure and Urban Development Department, said: “With increased resources, the Urban and Municipal Development Fund will be able to scale up its assistance to African cities and municipalities. The Bank will be in a position to successfully implement the Sustainable Urban Development Action Plan and effectively support African cities in addressing the significant infrastructure deficit, situations of vulnerability linked to the demographic boom and impacts on climate change in urban areas.” He thanked the donor countries for their unwavering support to the UMDF with the increased replenishment, the announced contribution, and the strategic advice they provide as oversight committee members.
Donors encouraged the Bank and the UMDF to maintain its emphasis on an integrated approach to urban development, adaptation and resilience to climate change, job creation, and the capacity of the urban fabric to promote productive activity and improve people’s living conditions. Aage Jorgensen, representing the Nordic Development Fund and chairing the oversight committee, said: “In particular, the Fund is called upon to also focus on promoting the development of the circular economy and on gender issues.”
The Bank committed the UMDF to continue supporting African Development Bank regional member countries to achieve the United Nations Sustainable Development goals, the Paris Climate Agreement and the Bank’s five strategic priorities (the High 5s). Its commitment is well encapsulated in the Sustainable Urban Development Action Plan that is expected in the last quarter of 2022.
“The UMDF is consolidating a network of reform-oriented cities, boosting very diverse projects at different scales, from project preparation to capacity building programs. Every African city is potentially eligible,” said Marcus Mayr, who invited cities to submit requests to the Fund.
African Development Bank Group
