Concept Note Municipal Investment Finance
  • October 21, 2015


Demographic pressures, climate change and the promise for economic opportunity are driving increased urbanization in many parts of the world. Today, one half of the world’s population is living in cities. Urban growth is not limited to capital cities – it is having a profound impact on secondary cities too. The pressures of growing urbanization are acute as in the world’s least developed countries (LDC) where many of the world’s fastest growing cities are located. The proportion of people living in urban areas is expected to rise to 62% in Africa and 65% in Asia by 2050 (UN Habitat). In some countries, this means a doubling of the current urban population within a few decades. For LDCs that already struggle to meet the needs of the poor, this trend is likely to increase the pressure in terms of access to basic services because the mechanisms are not in place to finance the necessary investment.