Advancing access to finance for urban infrastructure in Africa
Published: 24 Apr 2026
Climate Finance
General
Across Sub-Saharan Africa, demand for resilient urban infrastructure and services is high. This represents major investment needs and significant opportunities to shape sustainable development trajectories, provided projects are prepared early, structured well, and aligned with wider investment pathways.
In this context, the EU Regional Business Forum held from 30 March to 1 April 2026 in Abidjan, Côte d’Ivoire, brought together finance institutions, European investors, and public sector stakeholders, strengthening connections between the EU Global Gateway investment agenda and African government priorities, with African governments as partners and co-creators.
GIZ, under the CIVIC Platform - Climate Resilient Infrastructure Investment in Cities, is one of the implementation partners of the Covenant of Mayors in Sub-Saharan Africa (CoM SSA), and joined the forum to showcase how locally grounded urban priorities can connect to the EU’s policy and investment mobilisation agenda.
GIZ CoM SSA used the event as an engagement platform to strengthen visibility for its work on investment readiness while gathering intelligence and supporting alignment around the Lagos Metropolitan Area Transport Authority (LAMATA) Purple Line Urban Rail Project, to help move next steps forward.
From donor funding to investment: A shift in EU financing approach
Global Gateway is reinforcing an investment-focused approach in Africa, moving beyond traditional aid-based models towards advancing mutually beneficial priorities and economic transformation.
Exchanges at the forum reinforced this investment-driven approach with growing emphasis on blended finance, commercial capital mobilisation, and increased participation from the European private sector.
By working with local governments, CoM SSA strengthens investment readiness through early financial diagnostics and improves market-facing positioning through coordination across international and regional partners. This helps create partnership opportunities that can progress faster once financing windows open.
GIZ CoM SSA participated in a high-level bilateral meeting involving senior officials from Nigeria, the EU Delegation, including the Head of Transport (F4), DG INTPA, and the European Investment Bank (EIB). The Nigerian delegation presented a pipeline of priority projects, including in off-grid renewable energy and maritime and rail transport infrastructure, and recommended accelerating decision-making processes to secure timely financing commitments.
"We (EU) understand the challenges of competitiveness and are now coming up with a new ‘toolbox’ to speed up processes where there is secured European investment.”
Lénaïc GEORGELIN, Team leader Transport, INTPA.F.4 Sustainable Transport and Urban Development
Addressing the bankability gap in urban infrastructure
While the forum spotlighted a strong pipeline of projects across sectors such as transport, energy, and maritime development, it emphasised the persistent bankability constraints.
Throughout sessions, investors emphasised factors that make it possible to compare projects, price risk, and move from interest to transaction, including quality of preparation, regulatory predictability, realistic risk allocation, and revenue visibility.
These conditions shape whether projects advance and underpinned the importance of CoM SSA’s value proposition in building continuity from planning to investment through cooperation formats that strengthen local capacity, ownership, and delivery.
“Long discussions kill the interest of investors and stakeholders. In Africa, if you want to secure investments, you need to move fast.”
Abimbola Akinajo, Managing Director, LAMATA
Abimbola Akinajo, Managing Director, LAMATA
CoM SSA’s role in bridging cities and finance
In this evolving financing landscape, CoM SSA plays an important upstream investment preparation role in the overall delivery chain, acting as a bridge between municipal ambition and investment capital. At the forum, this was reflected through GIZ CoM SSA’s support to the LAMATA Purple Line Urban Rail Project.
Positioned in the West Africa Abidjan-Lagos corridor, the project is designed to connect with the existing transport networks to provide a high-capacity, low-carbon alternative to road-based transport in one of Africa’s fastest-growing urban regions. The current project cost is estimated at around US$2 billion, with a proposed financing structure of 10% Lagos State equity and 90% debt financing from DFIs and other lenders.
From a co-created project pitch session with LAMATA, followed by a closed-door financiers’ round table, GIZ CoM SSA representative Sanjeet Kumar, Technical Advisor (Energy and Infrastructure Finance), used the Forum to engage as a technical assistance facilitator and supported LAMATA to strengthen institutional alignment.
The project pitch session was part of the official Forum programme, delivered by Ms. Abimbola Akinajo, Managing Director of LAMATA, with the support of GIZ CoM SSA. She underlined Lagos State’s track record in delivering modern rail services, including the operational Blue Line electric rail, and positioned the Purple Line as a flagship investment and partnership opportunity to advance low-carbon urban mobility in Africa’s largest megacity. This was a clear call for partners to engage with the delivery approach and a financing model centred on DFI and concessional lending.
To keep the momentum, GIZ CoM SSA hosted a financiers’ roundtable after the project pitch. Attended by DFIs, Commercial Banks, European stakeholders, and LAMATA leadership, it focused on advancing financing opportunities for LAMATA’s Purple Line Urban Rail Transit System.
These dialogues echoed the importance of government support mechanisms, particularly guarantees, legal and regulatory framework, and viability gap funding. Environmental and social compliance was highlighted as a critical priority and the need for with a strong emphasis on inclusive stakeholder engagement and adherence to international standards.
“Early engagement of DFIs, financiers, and investors during project preparation is critical to securing faster investment and accelerating project delivery.”
Sanjeet Kumar, Technical Advisor (Energy and Infrastructure Finance), GIZ CoM SSA
Strengthening partnerships to unlock investment
The discussions in Abidjan accentuated the importance of continuous coordination with development partners, and private investors will be essential to improve efficiency and scaling impact.
By fostering structured engagement before and during the Forum, GIZ CoM SSA was able to test investor appetite, bankability considerations, and define continuity for the Purple Line project.
This EU Regional Business Forum reaffirmed that while capital is increasingly available, effective project preparation remains the key condition for turning interest into investment.
This reinforces the relevance of CoM SSA’s approach in designing project pathways that address market demands and equip cities to access and deploy investment, serving shared interests for both Europe and Africa. This positions African cities as partners and co-creators in delivering climate-resilient urban transformation.
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