Development finance institution the Development Bank of Southern Africa (DBSA) and African local government organisation United Cities and Local Governments of Africa (UCLG Africa) have committed to establish the African Territorial Trade and Investment Agency (ATIA), which is a special purpose vehicle dedicated to financing projects that will enhance the resilience, infrastructure and overall well-being of African cities.

ATIA will serve as a dedicated financial entity designed to mobilise resources for critical projects, leveraging the combined expertise and networks of DBSA and UCLG Africa. ATIA is poised to play a pivotal role in unlocking opportunities and overcoming barriers to sustainable urban development by pooling financial resources and fostering collaboration, the organisations said.

The memorandum of understanding marks a significant milestone in their collaborative efforts to support sustainable urban development across the African continent. This strategic partnership aims to address the evolving challenges faced by urban areas and to catalyse economic growth and social development.

ATIA has four key objectives, including financial innovation and introducing innovative financing mechanisms tailored to the needs of African cities to accelerate the implementation of sustainable urban development projects.

Further, it is aimed at building capacity and strengthening the financial and technical capacities of local governments to enable effective project planning, execution and management.

Another objective is to share knowledge and facilitate the exchange of best practices, expertise, and knowledge between DBSA, UCLG Africa and participating cities to enhance the impact of urban development initiatives.

Additionally, it will support the United Nations Sustainable Development Goals and promote projects that prioritise environmental sustainability, social inclusivity and economic resilience, aligning with global sustainable development goals.

"Our collaboration with DBSA represents a strategic alignment of our goals and values. Together, we can amplify our impact and address the unique challenges faced by African cities. ATIA is a testament to our collective dedication to the prosperity of urban areas across the continent," said UCLG Africa secretary-general Jean Pierre Elong Mbassi.

"This partnership between DBSA and UCLG Africa underscores our shared commitment to fostering sustainable urban development in Africa. By establishing ATIA, we aim to provide cities with the financial tools they need to build resilient, inclusive, and thriving communities," said DBSA CEO Boitumelo Mosako.

"This collaboration represents a major step forward in advancing the shared vision of DBSA and UCLG Africa to create vibrant, resilient and sustainable urban centres that enhance the quality of life for all citizens," she said.