The OECD Development Centre and UN-Habitat formed a strategic alliance in 2018 to investigate the role of intermediary cities in development. The first step was an expert meeting held in Paris comprising a diverse set of stakeholders including international organisations, local and national governments, and academics from around the world to discuss the main challenges and opportunities facing these cities. The meeting resulted in a set of strategic insights including the untapped transformational potential of these urban centres. It also identified three interrelated gaps that systematically affect intermediary cities in developing countries: gaps in knowledge, policy and financing. It was agreed that these gaps are interrelated and should be addressed simultaneously. To do so, local governments, national authorities and development partners need to work together to develop coherent development strategies.
Cities Connect was created to respond to this call. The OECD Development Centre and UN-Habitat contribute to this initiative, which was made possible through the financial support of the Swedish International Development Cooperation Agency (SIDA). This collaboration aims to advance policy dialogue on intermediary cities and their transformative potential in the international arena.
To achieve this, the initiative supports both local and national authorities in sub-Saharan Africa, Southeast Asia and Latin America in addressing the key constraints faced by intermediary cities and provides guidance on how to leverage their potential for local and national development. Cities Connect elevates the profile of intermediary cities by providing a platform for international policy dialogue, conducting empirical analysis and drafting policy-oriented reports.
This report builds on the findings of Intermediary Cities and Climate Change, which made clear that intermediary cities have a unique opportunity to avoid high-carbon development pathways. It responds to the need for a practical methodology to help cities shape low-emission futures while improving well-being. Drawing on systems thinking, the approach presented here helps local authorities understand how today’s decisions shape tomorrow’s outcomes. It was applied in four cities – Nakuru and Kiambu in Kenya, and Beira and Quelimane in Mozambique – through a participatory process involving planners, transport operators, civil society and local officials.
In Kenya, city stakeholders worked together to imagine what a sustainable Nakuru and Kiambu might look like by 2050. These long-term visions became the basis for identifying steps to shift urban systems in that direction. Local challenges – such as traffic congestion, fragmented transport, and expanding housing developments – were analysed in terms of how they interact and reinforce one another. This helped actors understand how policies on land use, roads, housing and mobility can be better aligned to support more inclusive, accessible and climate-resilient cities.
In Mozambique, the methodology was adapted to the specific contexts of Beira and Quelimane. Beira is managing legacy infrastructure vulnerable to climate shocks, while Quelimane stands out for its strong cycling culture. The systems approach helped local actors explore how to protect existing strengths and address challenges such as informal growth, weak governance and exposure to flooding. It also supported decision-making in settings where financial and technical resources are constrained.
Across the four cities, the experience highlights the value of thinking in systems to guide climate and urban policy. By understanding how infrastructure, institutions and behaviours interact, policymakers can better align near-term action with long-term goals. This report offers practical guidance on how cities can invest in public space, co-ordinate land-use and mobility planning, and strengthen governance to avoid carbon lock-in, while improving the quality of life for their residents.