EIB Announces €1.2 Million to Boost Climate-Resilient Urban Development in East Africa

The European Investment Bank (EIB Global) has provided over €1.2 million (over UGX 4.8 billion) in technical assistance support to cities in East Africa for the preparation of climate-resilient urban development projects.

The cities set to benefit from this technical assistance are Kericho, Nyamira, Kisumu, Embu, Eldoret, and Malindi in Kenya, as well as Zanzibar in Tanzania and Makindye in Uganda.

EIB Global’s support for cities is financed through the City Climate Finance Gap Fund – a multi-donor trust fund supported by Germany and Luxembourg and implemented jointly with the World Bank, in close partnership with German Development Cooperation (GIZ). The technical assistance programme focuses on early-stage project preparation, aiming to facilitate access to finance for urban projects that might otherwise remain at the idea stage.

Most of the support for the cities in the region will focus on assessing options for managing solid waste and faecal sludge, waste-to-energy solutions through the production of biogas, and wastewater treatment. Preliminary proposed solutions recommend integrated solid waste management plans that include waste segregation at source, separation of waste collections, waste recovery, and proper disposal.

Further technical assistance promotes active mobility by evaluating non-motorised transport options, implementing urban flood-proofing measures to mitigate flood risks, and enhancing environmental sustainability through the establishment of green public parks, as well as the expansion of urban forestry and biodiversity.

In Makindye, the support revolves around reviewing municipal organic solid waste treatment options and identifying potential sites for waste management.

EIB Vice President Thomas Ostros stated, “Cities and local governments play a key role in combating climate change because they experience its effects the most. However, they often struggle to develop climate-resilient infrastructure, primarily due to a lack of resources and expertise to create solid, investment-ready projects. Through its support for the Gap Fund, the EIB helps cities bridge these gaps and prepare effective climate projects.”

Technical assistance for project preparation plays a vital role in facilitating the implementation and financing of climate action projects by providing bankable opportunities. This is particularly true at the urban or sub-national level, where local authorities sometimes lack sufficient in-house capacity to prepare robust projects that can attract public and private finance providers at an international level.

The European Investment Bank is very active in urban climate finance, especially through the City Climate Finance Gap Fund. The Bank collaborates with other partners to advise on projects that will place cities on a path to net-zero.

Background information

About the European Investment Bank:

The EIB is the long-term lending institution of the European Union, owned by the Member States. It finances investments that align with EU policy objectives.

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance, and it is a key partner in Global Gateway. It aims to support €100 billion of investment by the end of 2027, approximately one-third of the overall target of this EU initiative. Alongside Team Europe, EIB Global fosters strong, focused partnerships with fellow development finance institutions and civil society. EIB Global brings the Group closer to people, businesses, and institutions through its offices worldwide.

Photos of EIB headquarters for media use are available here.

About the City Climate Finance Gap Fund:

Cities are pivotal in creating a climate-smart future. Over half the global population resides in cities, generating 80% of total economic output and responsible for 70% of global CO2 emissions. While urbanisation is a key driver of growth, unplanned, rapid urbanisation and urban sprawl threaten to exacerbate greenhouse gas emissions and vulnerability to climate change and other shocks. As many cities and local governments take steps to become low-carbon and climate-resilient, they encounter barriers in accessing finance and face difficulties in planning and project preparation, due to insufficient capacity or resources — particularly in the early stages of the project cycle. The Gap Fund supports cities in addressing these specific challenges.

On 20th September 2023, the governments of Germany and Luxembourg announced new funding of €50 million for the City Climate Finance Gap Fund (Gap Fund), a multi-donor fund implemented by the World Bank and the European Investment Bank alongside their partners. These resources will bolster the development of low-carbon and climate-resilient urban investments and will nearly double the fund’s capitalisation, raising it to €105 million, making it one of the largest early-stage technical assistance funds for cities and climate.

It provides much-needed funding for early-stage technical assistance and capacity building, enabling cities from low- and middle-income countries to operationalise their climate action plans, develop solid project concepts, and access climate finance resources. Since its establishment in 2020, the EIB has supported 137 cities in developing and emerging economies through the Gap Fund.