Africa’s cities need the Loss and Damage Fund to survive climate shocks

Heatwaves, heavy rains, floods, tropical cyclones and prolonged droughts, which are some of the effects of climate change, are having devastating impacts on communities and economies, with increasing numbers of people at risk across the continent. Africa’s rapidly expanding cities are hotspots of this vulnerability and impact.

According to the OECD report, Africa is one of the world’s least urbanised continents, yet it hosts the most rapidly urbanising region — Sub-Saharan Africa.

The region has an urban population of 500 million people, accounting for approximately 40 percent of the continent's population, and an urban growth rate double that of the global average at 4.1 percent per year, compared to the global average of 2.1 percent. By 2050, it is estimated that over 60 percent of Africans will be living in urban areas.

This accelerated urban growth puts further pressure on existing challenges such as inadequate infrastructure, insufficient access to basic services, unemployment, and housing shortages.

About 56 percent of urban population in Africa reside in informal settlements, compounded by insecure land tenure and constrained access to essential infrastructural services such as sanitation, water and energy, according to the African Cities Research Consortium and Brookings - 2024 reports.

In UN Secretary-General António Guterres’ own words, "Africa is on the frontlines of the climate crisis. The time for action is now. We must invest in sustainable solutions to protect our people and planet."

But all is not lost. One of the recent global developments in climate policy has been the establishment of the Fund for Responding to Loss and Damage, which aims to provide financial support to vulnerable countries affected by climate disasters.

The Fund, established during the COP27 negotiations, holds significant potential for African nations, especially in the context of urban development and the challenges faced by rapidly growing cities across the continent.

It has the potential to serve as a powerful tool to address both the immediate impacts of climate disasters and the longer-term need for sustainable urban development in Africa, through the principle of “building back better”.

Firstly, the Fund could be channeled into immediate relief and rebuilding efforts, such as reconstructing homes, improving drainage systems to mitigate flooding, and ensuring access to clean water and sanitation.

Secondly, the Fund could be used to empower local communities, particularly marginalised populations in urban slums and informal settlements, who are often the hardest hit by climate disasters.

Finally, the Fund could be used to support capacity building initiatives such as training local leaders, strengthening disaster management systems and creating meaningful climate partnerships.

Supporting these actors to adapt and develop is crucial for sustained resilience. Also, the informal economy – which forms a significant part of Africa's urban economy – should not be left behind.

Reimagining African cities

That said, the Fund for Responding to Loss and Damage has the potential to play a transformative role in the urban development of African cities, particularly in mitigating and adapting to the impacts of climate change.

Whether this potential is reached depends on the setup of the Fund and the criteria used to assess projects – and whether those are in line with African realities in terms of data and capacity availability. It also depends on careful planning and effective collaboration to ensure that the Fund benefits those who need it most.

This is a unique opportunity to not only address the consequences of climate change, but also to reimagine African cities as models of sustainability and inclusivity for the future.

The writer is the Head of Policy, Research and Partnerships at Shelter Afrique Development Bank.