The World Bank has warned that Sub-Saharan Africa risks missing a historic opportunity to create millions of jobs unless governments overhaul urban planning and improve transport networks. According to the bank, the region's urban population is projected to increase by 748 million people between 2025 and 2050, reaching 1.7 billion. This transformation presents an opportunity to expand manufacturing, services, and trade, but the World Bank cautions that rapid urbanization alone will not deliver higher productivity, better incomes, or decent employment.
The World Bank report highlights that African cities generate nearly 50 percent less economic activity than similarly sized cities at the global productivity frontier. This is due to inadequate infrastructure, fragmented development, and weak connections between workers and employers. The report identifies the poor spatial organization of cities as a major obstacle to job creation, arguing that governments must prioritize locations where businesses can cluster and workers can reach employment centers affordably.
The challenge is particularly pressing in Sub-Saharan Africa, where approximately 15 million young people enter the region's labor markets annually, requiring a substantial expansion of productive employment. The report notes that about one-quarter of firms in the region identify transport as a major or very severe constraint, while only around 32 percent of Africans live within walking distance of public transport. Poor connectivity raises the cost of doing business, limits access to markets, and makes it harder for workers to reach available jobs.
The World Bank recommends coordinated investment in roads, mass public transport, and affordable housing in strategically selected urban areas. Governments should also reform land-use regulations to make it easier for businesses and workers to locate close to economic opportunities. The report emphasizes that much of the infrastructure needed for the region's urban expansion has yet to be built, allowing policymakers to establish road networks and reserve land for essential services before unplanned settlements become entrenched.
Beyond major metropolitan centers, the report highlights the economic potential of more than 15,000 towns across Sub-Saharan Africa, many of which remain overlooked in national development strategies. The World Bank urges governments to prioritize towns with strong economic and geographical advantages, particularly those along transport corridors and near established commercial activity. Targeted infrastructure and improved planning could help these towns attract businesses, strengthen agricultural value chains, and create employment closer to rural communities.
The World Bank also recommends modernizing property tax systems using affordable digital technologies, improving the predictability of transfers from central governments, and strengthening accountability in local authorities. Stronger municipal revenues would improve cities' creditworthiness and ability to attract private investment through public-private partnerships, reducing reliance on strained public budgets to finance roads, housing, and essential services.
World Bank Group Managing Director and Chief Knowledge Officer Paschal Donohoe emphasized that decisions about how cities grow could shape job creation, productivity, and private investment for decades. He warned that Africa cannot rely on population growth and urban migration alone to deliver economic transformation, and that governments must build cities that connect people to productive work, rather than allowing settlements to expand faster than infrastructure and employment opportunities.
Key points
- Sub-Saharan Africa's urban population is projected to reach 1.7 billion by 2050.
- African cities generate nearly 50 percent less economic activity than similarly sized cities at the global productivity frontier.
- The World Bank recommends coordinated investment in roads, mass public transport, and affordable housing in strategically selected urban areas.
