Nairobi, June 8, 2023 - The newly established Advisory Council of the EFSD+ Guarantee Facility for Sustainable Cities convened today in Nairobi, marking the beginning of an important initiative aimed at supporting innovative infrastructure financing solutions in secondary cities and river basins in Sub-Saharan Africa and Southeast Asia.

Chaired by the United Nations Capital Development Fund (UNCDF), represented by the Director of Local Transformative Finance Practice, the Council brings together prominent global stakeholders to guide and advise on the successful implementation of the Guarantee Facility. The Advisory Council is privileged to count on United Cities and Local Governments and UN Habitat as its distinguished members. Their invaluable expertise and leadership will significantly contribute to the advancement of sustainable urban development and the realization of SDG 11, the New Urban Agenda, and best practices in financing urban growth. An EU representative attended as an observer to the inaugural meeting.

The primary objective of the Advisory Council is to provide high-level guidance to ensure the effective implementation of the Guarantee Facility for Sustainable Cities. The Council will play a role in aligning investment policies with international development agendas on cities, advocating for increased capital financing to address urbanization challenges, and advising UNCDF on the strategy of the Guarantee Facility.

"The European Commission's positive decision towards UNCDF's proposal for a Guarantee Facility for Sustainable Cities, to be funded by the European Fund for Sustainable Development, is a recognition of the work of the Malaga Coalition, of our partnership with UN Habitat, and of UNCDF's financial expertise. The Advisory Council ensures that the investment policies and operational modalities of the Facility are harmonized with SDG 11, the local and regional government constituency, the New Urban Agenda, and best practices in financing sustainable urban development.” said UNCDF Officer-in-Charge Mourad Wahba.

“UCLG is looking forward to taking on the role of Advisor to steer this mechanism led by UNCDF. With the Cities Guarantee Facility, we are witnessing a great milestone towards increased mobilization of funding and secured revenue streams to localize the global agendas. De-risking actions led by local and regional governments and leveraging private investment for transformative territorial infrastructure through blended finance acknowledged in the UCLG Pact for the Future of Humanity, which will help to address the ecological crises, reduce inequalities, capacitate governments and forge a new development paradigm that protects and foments local and global commons.” Emilia Saiz, UCLG Secretary General

“UN-Habitat is delighted to be a member of the Advisory Council for the Guarantee Facility for Sustainable Cities. This will further strengthen our collaboration with UNCDF on the fused offering on financing for local and regional governments and for sustainable urbanization,” said UN-Habitat Executive Director Maimunah Mohd Sharif.

The Advisory Council expressed its enthusiasm and commitment to advancing sustainable cities and ensuring the success of the Guarantee Facility. With its collaborative approach, the Council aims to leverage its collective expertise, advocate for resources, and promote transformative financing solutions to address the unique challenges faced by cities in achieving sustainability.