A recent World Bank Group report, Sub-Saharan Africa’s Urban Awakening: Catalysing Economic Growth and Job Creation, suggests that Sub-Saharan Africa can create millions of jobs by directing investment towards cities and towns with the greatest economic potential. The report warns that rapid urbanisation must be matched with better planning, infrastructure, and governance. According to the report, the region will add 748 million urban residents between 2025 and 2050, presenting governments with an opportunity to expand employment and improve productivity.
The report highlights that cities already offer stronger economic prospects than rural areas, with urban households spending considerably more per adult than equally educated rural households. This is due to access to more and better-paid employment opportunities. However, the report argues that the benefits of urbanisation will depend on how governments manage expansion, particularly by directing investment towards areas where businesses can operate close to one another and workers can easily access jobs.
The World Bank Group Managing Director and Chief Knowledge Officer, Paschal Donohoe, emphasised that much of Sub-Saharan Africa’s urban infrastructure needed for Africa’s future cities has yet to be built. He said decisions on where and how cities expand could influence job creation, productivity, and private investment for decades. The report cites Dar es Salaam as an example, where long commutes and high transport costs are limiting workers’ access to employment opportunities.
In Dar es Salaam, low-income workers typically spend more than 90 minutes commuting by bus, while transport costs account for an average of 16 percent of women’s monthly incomes and 13 percent of men’s. The report argues that cities need to bring businesses, workers, housing, and essential infrastructure closer together to generate more employment and attract private investment. It recommends that governments in major cities prioritise transport networks, infrastructure, and affordable housing in locations close to employment centres.
The report draws on household data from 13 African countries, including Tanzania, to examine differences in living standards between urban and rural areas. It finds that urban households generally have higher expenditure per adult than comparable rural households, although the benefits vary by the size and economic performance of individual urban areas. Across the region, 56 percent of workers remain in informal employment, including unpaid informal work and self-employment undertaken for survival.
The report identifies three areas requiring different policy responses: established cities, their rapidly expanding outskirts, and smaller towns. For rapidly expanding urban peripheries, it calls for early planning, including the construction of road networks and the reservation of land for essential infrastructure before unplanned development takes hold. The report also highlights the economic potential of smaller towns, particularly those located along transport corridors and near existing commercial activities.
World Bank lead urban economist and the report’s lead author, Mark Roberts, said urbanisation would not automatically translate into better jobs without effective institutions and adequate financial resources. To strengthen local government finances, the report recommends using low-cost technology to modernise property tax systems, improve revenue collection, and enhance cities’ creditworthiness. These measures could help local authorities attract private investment, including through public-private partnerships in strategic urban locations.
Key points
- Sub-Saharan Africa can create millions of jobs by directing investment towards cities and towns with economic potential.
- The report recommends that governments prioritise transport networks, infrastructure, and affordable housing in locations close to employment centres.
- Effective institutions and adequate financial resources are essential to turn rapid urbanisation into better infrastructure, more investment, and ultimately more and better jobs.
