Cladding the wall will be a solution, depending on how you plan to construct it, ensure that a dpc is installed before fixing any battens on. Tanking the wall would also be a solution, black jack helps prevent damp and mould coming through. If you fix battens to it, ensure they are pre treated. Also check the strength of the wall, if the damp is severe then the bricks will be soft and possibly crumbling. This will determine what fixings and what kind of weight the wall can take with the material you plan on using.
have you thought of putting a fencing just inside your boundary to cover it and hide their issues?