This volume addresses the issues of financing urban growth of the African continent -- which has the highest urban growth rate on the planet -- in the next decades. Considerable investment will be needed to sustain this level of growth and to clear up accumulated backlogs. At the same time, decentralization has resulted in increased responsibilities for local government; but in most cases, institutional reforms were carried out without the transfer of a sufficient level of resources, and local capacities in governance and project management are weak. Which mechanisms will finance these extensive needs, and how will African local governments meet these needs? Specifics on how to finance African cities have not been studied. The actual scale of this market has not been fully grasped. A systemic approach to this market is difficult because of its diversity (country size; institutional context; characteristics of urban network; availability of capital market, currency, etc.) and a lack of data. Donors’ assistance methods in the sector are disparate, marked by disputes between different schools of thought; special-purpose vehicles created by donors operate according to a variety of methods and with wide-ranging and sparsely disseminated results. What is the best way to transform these systems, often antiquated in many respects, into modern financing systems that facilitate access to domestic markets, mobilize local savings and reinforce local government autonomy? There is no single answer to this question in regard to such a variety of institutional and economic contexts. The main objective of the study is to clarify the debates and to enlighten the choices of African decision-makers at local and national level.

Cities in Sub-Saharan Africa are experiencing rapid population growth. Yet their economic growth has not kept pace. Why? One factor might be low capital investment, due in part to Africa's relative poverty: Other regions have reached similar stages of urbanization at higher per capita GDP. This study, however, identifies a deeper reason: African cities are closed to the world. Compared with other developing cities, cities in Africa produce few goods and services for trade on regional and international markets To grow economically as they are growing in size, Africa's cities must open their doors to the world. They need to specialize in manufacturing, along with other regionally and globally tradable goods and services. And to attract global investment in tradables production, cities must develop scale economies, which are associated with successful urban economic development in other regions. Such scale economies can arise in Africa, and they will--if city and country leaders make concerted efforts to bring agglomeration effects to urban areas. Today, potential urban investors and entrepreneurs look at Africa and see crowded, disconnected, and costly cities. Such cities inspire low expectations for the scale of urban production and for returns on invested capital. How can these cities become economically dense--not merely crowded? How can they acquire efficient connections? And how can they draw firms and skilled workers with a more affordable, livable urban environment? From a policy standpoint, the answer must be to address the structural problems affecting African cities. Foremost among these problems are institutional and regulatory constraints that misallocate land and labor, fragment physical development, and limit productivity. As long as African cities lack functioning land markets and regulations and early, coordinated infrastructure investments, they will remain local cities: closed to regional and global markets, trapped into producing only locally traded goods and services, and limited in their economic growth.

For African cities to grow economically as they have grown in size, they must create productive environments to attract investments, increase economic efficiency, and create livable environments that prevent urban costs from rising with increased population densification. What are the central obstacles that prevent African cities and towns from becoming sustainable engines of economic growth and prosperity? Among the most critical factors that limit the growth and livability of urban areas are land markets, investments in public infrastructure and assets, and the institutions to enable both. To unleash the potential of African cities and towns for delivering services and employment in a livable and environmentally friendly environment, a sequenced approach is needed to reform institutions and policies and to target infrastructure investments. This book lays out three foundations that need fixing to guide cities and towns throughout Sub-Saharan Africa on their way to productivity and livability.

Coping with increasing water demand of rapidly-growing cities in Sub-Saharan Africa will require new and innovative planning and management solutions. This book presents Integrated Urban Water Management, an innovative and holistic approach for all components of the urban water cycle to better adapt to current and future urban water challenges.

The State of the African Cities 2010 goes above and beyond the first report, which provided a general overview of housing and urban management issues in Africa. With the subtitle: Governance, inequity and urban land markets, the report uncovers critical urban issues and challenges in African cities, using social and urban geography as the overall entry points. While examining poverty, slum incidence and governance, the report sheds more light on inequity in African cities, and in this respect follows the main theme of the global State of the World's Cities 2010 report. Through a regional analysis, the report delves deeper into the main urban challenges facing African cities, while provoking dialogue and discussion on the role of African cities in improving national, regional and local economies through sustainable and equitable development. The report has been drafted in cooperation with Urban Land Mark. Through an analytical survey of several African cities, the report examines urban growth, social conditions in slums, environmental and energy issues and, especially, the role of urban land markets in accessing land and housing.

Finance for City Leaders presents an up-to-date, comprehensive, and in-depth analysis of the challenges posed by rapid urbanization and the various financing tools municipalities have at their disposal.

This 10th thematic volume of International Development Policy presents a collection of articles exploring some of the complex development challenges associated with Africa’s recent but extremely rapid pace of urbanisation that challenges still predominant but misleading images of Africa as a rural continent. Analysing urban settings through the diverse experiences and perspectives of inhabitants and stakeholders in cities across the continent, the authors consider the evolution of international development policy responses amidst the unique historical, social, economic and political contexts of Africa’s urban development. Contributors include: Carole Ammann, Claudia Baez Camargo, Claire Bénit-Gbaffou, Karen Büscher, Aba Obrumah Crentsil, Sascha Delz, Ton Dietz, Till Förster, Lucy Koechlin, Lalli Metsola, Garth Myers, George Owusu, Edgar Pieterse, Sebastian Prothmann, Warren Smit, and Florian Stoll.