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Proposal for the establishment of a Multi-Donor Trust Fund : The Urban and Municipal Development Fund (UMDF)


In 1992, the Board of the African Development Bank Group approved an Urban Development Policy to provide guidance for Bank Group operations in the urban sector, build a foundation for dialogue with counterparts and promote cooperation with other development partners. In October 2011, the Board approved an Urban Development Strategy, which aims to enhance the scale and efficiency of Bank operations in urban sectors of Regional Member Countries (RMCs). The strategy is anchored on three main pillars: (1) infrastructure delivery, (2) governance, and (3) private sector development. Activities under each pillar will be implemented within the broader national development agenda of RMCs and will be aligned with country strategy papers (CSPs) and other key Bank Group initiatives. The Urban Development Strategy seeks to boost the viability and competitiveness of African cities and towns, enabling them to act as real drivers of sustainable economic growth and social development. Since 2011, the Bank has implemented urban development projects. The investments in transport and urban mobility are increasing steadily, from about US$ 125 million in 2009-2015 to an unprecedented US$ 500 million in 2016-2017. In 2018, the Bank established a new division dedicated to Urban Development, which will oversee the preparation of a new Urban Development Action Plan, its implementation, as well as the UMDF operationalization.

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