Open letter to African Ministers of Finance by mayors and governors of African cities

Mayors and governors have signed the following open letter directed at African Ministers of Finance during the Green & Resilient UrbanShift Africa Forum in Nairobi, Kenya:

Dear Honourable Ministers,

As mayors and governors of cities across Africa, we are issuing a collective call for urgent and collaborative action to unlock the finance we need to drive sustainable urban development and build our resilience to the escalating climate emergency.

Cities are the economic engine of Africa, contributing up to 70% of the continent’s GDP. However, they face the twin challenges of rapid urbanisation and the climate crisis. By 2050, Africa’s urban population will nearly triple to 1.5 billion. With 92% of the fastest growing cities in Africa already considered at extreme climate risk investment in climate resilient infrastructure and housing is urgently needed. African countries are estimated to lose between 2–5% of GDP per annum to extreme weather events. Investing in adaptation is critical and financially prudent; every $1 spent now could potentially return $4 in avoided future climate related damages and losses, according to the World Bank. Chronic underinvestment only adds to poverty and inequality.

Our cities urgently need investment in nature-based solutions to help us manage extreme heat and flooding, especially for the most vulnerable populations; decentralised renewable energy to improve air quality, energy access and reliability; sustainable housing to accommodate our booming populations with affordable solutions for the poor; public transportation to boost productivity, quality of life and get the dirtiest vehicles off the road; waste and wastewater treatment to safeguard public health and improve public services.

To address these challenges and deliver impact on the ground, we need an immediate and significant change in how finance from public and private sources flows to our cities. African cities face a growing financing gap to address development and climate challenges. Climate finance needs in sub-Saharan African cities alone are estimated $155 billion per annum, but the region attracted only $5.5 billion in 2021/22, less than 4% of what is needed. Meanwhile, an average of $24 billion per year was invested in fossil fuel companies and projects in Africa between 2017 and mid-2021, highlighting the imbalance between those fighting for a positive climate future and those seeking to maintain the broken status quo. Directing these funds towards renewables would allow for more decentralised, inclusive, localised, affordable ways of producing and consuming energy for people who are most in need.

Despite this urgency, as mayors we face distinct barriers and constraints on our ability to mobilise public and private finance. Some of our cities face arbitrarily low debt limits, lack of regulatory clarity on how revenue can be raised and managed and restrictions on who can provide finance to cities. According to the OECD, African subnational governments have the lowest fiscal capacity of local governments around the world, the lowest levels of investment as a proportion of public investment and lowest levels of intergovernmental transfers, even when compared to countries with similar income levels. For cities with stronger financial maturity, global capital markets have yet to respond with the volume and types of financing required to meet their needs, leaving critical gaps in infrastructure investment.

As city leaders we are committed to ensuring our cities become more resilient, inclusive, and sustainable. We are actively enhancing financial management and budgeting processes, improving creditworthiness, and focusing on transparency, and integrating climate risk assessments into our decision-making.

We acknowledge the vital role that national governments play in supporting us by shaping the policy landscape and regulatory environment to enhance finance for urban development. Many African countries have already signed onto the Coalition for High Ambition Multilevel Partnerships (CHAMP) and many of you are members of the Coalition of Finance Ministers for Climate Action. We also acknowledge that in the current economic context, national budgets are under unusual pressures raising complex and challenging resource allocation decisions.

Therefore, we respectfully propose the following actions to enhance finance flows into our cities:

Mainstream climate and nature urban priorities into national budgeting and planning

• Embed urban needs and priorities within national policy, country strategies with development finance partners, cooperation agreements, and climate and nature commitments
• Strengthen climate-sensitive and nature-positive budgeting to ensure major urban capital investment projects are appraised with a climate and nature lens and embed measures to mitigate climate risk

Establish robust frameworks for municipal finance

• Strengthen municipal finance governance frameworks reflecting cities’ capacities and investment needs; clearly establish and strengthen the financial mandate of cities; and establish the conditions and mechanisms under which local governments can adequately and sustainably finance and fund costs for climate change action
• Enhance the predictability of intergovernmental transfers. As these transfers represent one of the most critical revenue sources for cities, greater predictability not only enhances cities’ ability to plan and deliver climate-resilient projects but also strengthens their creditworthiness.

Expand access to sustainable finance

• Expand and equip national financial intermediaries so they can build local capacity and mobilise, pool and scale finance to local governments for climate and development projects.
• Establish clear enabling frameworks that facilitate private sector and community investments in climate action projects, including, where appropriate, defining clear guidelines for public-private partnerships (PPPs), municipal bond issuance, and other innovative finance vehicles as well as taxonomies for sustainable investment.

We stand ready to collaborate with you and hope you can join us to build our financial and institutional capacity to play a pivotal role in Africa’s sustainable development.

Sincerely,

• Minister Governor of Abidjan, Côte d’Ivoire – Ibrahim Cissé Bacongo
• Deputy Mayor of Accra, Ghana – Douglas N.K. Annoful
• Mayor of Bulawayo, Zimbabwe – David Coltart
• Executive Mayor of Cape Town, South Africa – Geordin Hill-Lewis
• Mayor of Chefchaouen, Morocco – Mohamed Sefiani
• Executive Mayor of Durban (eThekwini), South Africa – Cyril Xaba
• Governor of Embu County, Kenya – Cecily Mbraire
• Mayor of Freetown, Sierra Leone – Yvonne Aki-Sawyerr
• Governor of Kajiado, Kenya – Joseph Jama Ole Lenku
• Mayor of Keur Massar Kord, Senegal – Adama Sarr
• Deputy Governor of Kisumu, Kenya – Dr Mathew Owili
• Mayor of Kloto I, Togo & President of the Regional Mayors Forum of CoMSSA – Yawo Winny Dogbatse
• Governor of Lagos, Nigeria – Babajide Olusola Sanwo-Olu
• Mayor of Lusaka, Zambia – Chilando Chitangala
• Governor of Nairobi, Kenya – Sakaja Arthur Johnson
• Mayor of Pikine, Senegal – Aboulaye Thimbo
• Mayor of Quelimane, Mozambique – Manuel Antonio Alculete Lopes de Araujo
• Executive Mayor of Tshwane, South Africa – Cllr Dr Nasiphi Moya

(Signatures updated as of 17 February 2025)