LAC study tour: Slums Upgrading - sector note 5

This publication is part of a series of five notes reviewing the trends and challenges associated with urban development in Latin American cities (LAC) in five key sector. All of these notes identify the specific challenges that the cities have encountered in managing urban development and the impact of climate change. African cities can draw valuable insights from Latin American cities, which have successfully implemented innovative solutions to tackle the challenges of urban development while keeping environmental and fiscal sustainability standards.

Informal settlements present a significant challenge to African cities, with over 200 million people living in precarious conditions. To tackle this issue, this paper draws on valuable experiences and insights gained from Latin American countries, which have faced similar challenges with varying degrees of success.

The first section of the paper outlines the pressing need for comprehensive urban integration and development strategies. It highlights the multifaceted challenges faced by informal settlements in Latin America, providing an in-depth understanding of the depth and complexity of the issue at hand. Moving forward, the section on “Experiences from Latin American Cities” showcases successful Neighborhood Upgrading Programs (PMBs). These programs have not only improved living conditions but also effectively tackled informal settlements, serving as inspirational models for African cities seeking sustainable solutions. The paper also provides insights from these successful programs in Latin America, which can be applied to similar challenges in African cities. Subsequent sections delve into critical dimensions, such as the economics of informal settlements, financing structures for upgrading programs, and the role of the private sector in housing provision. Throughout the final section, emphasis is placed on the importance of proactive policies over-reactive interventions. By prioritizing preventive measures, cities can mitigate the adverse impacts of informal settlements and foster long-term resilience against environmental adversities. Concerning this, the section addresses new challenges about climate change, green infrastructure, energy efficiency, and water consumption in informal settlements.

In conclusion, this paper offers actionable recommendations and strategies to support sustainable Neighborhood Upgrading Program efforts. By leveraging the experiences and lessons learned from Latin America, it aims to cultivate innovative approaches and collaborative partnerships to create resilient and inclusive cities across the Global South.