…New World Bank Group report sets out priorities to turn the region’s rapid urbanization into more productive cities and better jobs
Sub-Saharan Africa’s cities could become powerful engines of economic growth and job creation if governments focus investment and policy attention on places where firms can cluster and workers can easily reach them, according to a new World Bank Group report.
The newly released Sub-Saharan Africa’s Urban Awakening: Catalyzing Economic Growth and Job Creation report projects that the region will add 748 million urban residents between 2025 and 2050. It finds that this growth offers a time-bound opportunity to create more and better jobs for the region’s expanding young workforce. Cities already offer stronger prospects: urban households spend considerably more per adult than equally educated rural households, reflecting more and better jobs.
“Sub-Saharan Africa’s urban transition can transform the region’s jobs market,” said Paschal Donohoe, World Bank Group Managing Director and Chief Knowledge Officer. “With the right investments and reforms in infrastructure, land, connectivity and financing, cities can attract private capital, boost productivity, and create the formal jobs that millions of young Africans are looking for.”
The report finds that realizing this potential will require targeted action to address the different challenges facing cities, their rapidly growing peripheries, and smaller towns. In major cities, governments should prioritize the creation of accessible, job-rich clusters by investing in infrastructure, transport and affordable housing, while improving regulations that enable firms and workers to locate closer to economic opportunities. On city peripheries, governments need to plan ahead for rapid expansion, particularly by establishing road networks and reserving space for essential infrastructure before development becomes entrenched.
The report also highlights the often-overlooked potential of Sub-Saharan Africa’s more than 15,000 towns. For smaller towns, the report recommends a selective approach to investment, focusing resources on places with strong economic and geographic potential, particularly towns along transport corridors and near other economic opportunities.
In these high-potential towns, targeted infrastructure and stronger urban planning can help unlock growth and job creation, while investment in education and health can help residents in towns with fewer economic opportunities connect to stronger labor markets. The report also calls for rapidly growing towns to have the appropriate urban governance and financing tools they need to better plan for future expansion.
“Africa’s urban transformation will deliver on its promise only if cities have the institutions and resources to manage growth effectively. Stronger urban governance, more predictable financing, and greater accountability are essential to turn rapid urbanization into better infrastructure, more investment, and ultimately more and better jobs,” saidMark Roberts, World Bank Senior Urban Economist and co-author of the report.
The report recommends practical, cost-effective measures, such as using low-cost technology to modernize property tax systems that can raise local revenue, improve city creditworthiness, and help attract private investment, including through public-private partnerships in key city locations.
With Sub-Saharan Africa’s urban future taking shape now, the choices made today will shape the region’s cities for generations to come. The report emphasizes the need to act early and strategically, combining targeted infrastructure with stronger institutions, better urban planning and financing, and greater mobilization of private capital. Together, these measures can help ensure the region’s rapid urban growth translates into greater economic opportunity and more and better jobs.
