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Financing Sources for Urban Water Resilience in African Cities
This page provides an overview of financing examples and sources available to African cities seeking to advance urban water resilience, including climate adaptation, water supply, sanitation, stormwater management, and nature-based solutions.
Multilateral Development Banks
African Development Bank Group (AfDB)
The AfDB is the primary multilateral development bank for Africa and offers multiple financing windows for urban water resilience.
Urban and Municipal Development Fund (UMDF)
Focus: Urban planning, infrastructure, and climate resilience
Instruments: Grants, technical assistance, project preparation support
Windows:
African Cities Program: 2-year intensive support for action planning and project preparation
Project Preparation Window: Financial/technical assistance for high-impact urban projects
Municipal Access to Finance Window: Technical assistance for cities to improve creditworthiness
Contact: AfDB Urban Development Division
Website: afdb.org/en/topics-and-sectors/initiatives-partnerships/urban-and-municipal-development-fund
Direct Subnational Lending
- Example: ZAR 2.5 billion ($139 million) loan to City of Johannesburg (2025) for water, sanitation, electricity, and waste infrastructure
- Eligibility: Creditworthy metropolitan municipalities
- Note: First-ever direct AfDB lending to a subnational entity in Africa
African Water Facility (AWF)
- Host: AfDB (initiative of AMCOW)
- Focus: Project preparation for water and sanitation
- Projects Funded: 138 projects in 52 African countries to date
- Key Initiative: Africa Urban Sanitation Investment Initiative (AUSII)
- Target: $320 million over 10 years for 50 sanitation projects
- Goal: Connect 15 million people to safely managed sanitation
- Partners: Nordic Development Fund (€12 million initial funding)
- Contact: Mary Ajayi, [email protected]
- Website: afdb.org/en/topics-and-sectors/initiatives-partnerships/african-water-facility
World Bank Group
Eastern and Southern Africa WASH Program
- Approved: September 2025
- Amount: Up to $1.58 billion
- Target: 12 countries (Angola, Burundi, Comoros, DRC, Ethiopia, Malawi, Madagascar, Mozambique, Somalia, South Sudan, Tanzania, Zambia)
- Beneficiaries: 30+ million people
- Pillars: National platforms, governance reforms, service delivery, climate-resilient infrastructure
- Partner: AUDA-NEPAD
South Africa Metro Trading Services Program
- Type: Program-for-Results (PforR) – first in South Africa
- Focus: Water supply, sanitation, electricity, solid waste in 8 metropolitan municipalities
- Beneficiaries: 22 million people (85% of SA’s economic activity)
- Approach: Disbursement linked to verified results
Global Water Security & Sanitation Partnership (GWSP)
- Type: Multi-donor trust fund and knowledge platform
- Focus: Policy changes, capacity building, scaling delivery
- Products: Technical assistance, analytical tools, implementation support
- Website: worldbank.org/en/programs/global-water-security-sanitation-partnership
World Bank Group
Urban and Municipal Development Fund (UMDF)
Focus: Urban planning, infrastructure, and climate resilience
Instruments: Grants, technical assistance, project preparation support
Windows:
African Cities Program: 2-year intensive support for action planning and project preparation
Project Preparation Window: Financial/technical assistance for high-impact urban projects
Municipal Access to Finance Window: Technical assistance for cities to improve creditworthiness
Contact: AfDB Urban Development Division
Website: afdb.org/en/topics-and-sectors/initiatives-partnerships/urban-and-municipal-development-fund
Direct Subnational Lending
- Example: ZAR 2.5 billion ($139 million) loan to City of Johannesburg (2025) for water, sanitation, electricity, and waste infrastructure
- Eligibility: Creditworthy metropolitan municipalities
- Note: First-ever direct AfDB lending to a subnational entity in Africa
African Water Facility (AWF)
- Host: AfDB (initiative of AMCOW)
- Focus: Project preparation for water and sanitation
- Projects Funded: 138 projects in 52 African countries to date
- Key Initiative: Africa Urban Sanitation Investment Initiative (AUSII)
- Target: $320 million over 10 years for 50 sanitation projects
- Goal: Connect 15 million people to safely managed sanitation
- Partners: Nordic Development Fund (€12 million initial funding)
- Contact: Mary Ajayi, [email protected]
- Website: afdb.org/en/topics-and-sectors/initiatives-partnerships/african-water-facility
Rooted in Collaboration, Driven by Purpose
The ACWA Platform is grounded in the 2030 Joint Agenda for Urban Water Resilience in Africa, a bold roadmap developed through deep collaboration with institutions and thought leaders across the continent.
