Unlocking climate finance for local governments in sub-Saharan Africa

Analytical foundations for a practitioner toolbox

Local governments in sub-Saharan Africa are at the forefront of climate change impacts, yet remain significantly under-resourced to respond effectively.
This working paper presents analytical insights, case-based evidence, and governance lessons on climate finance for local governments in Sub-Saharan Africa. It draws on literature, comparative cases, and ICLD facilitated workshops.

The paper serves as an analytical foundation for a forthcoming ICLD practitioner toolbox aimed at local civil servants and elected officials, highlighting the role of local governance, institutional capacity and inclusive participation in aligning climate finance with community priorities and supporting sustainable climate adaptation. It identifies key challenges to accessing and managing climate finance at the local level, including limited institutional and technical capacity, complex and centralised financing architectures, weak coordination across levels of government, and insufficiently inclusive decision-making processes.

Recommended pathways for local governments include strengthening local institutional readiness and fiscal governance, improving national–local coordination,
embedding democratic and participatory approaches, and leveraging innovative and blended financing mechanisms.