By Kehinde Victor

KEY POINTS

• Sub-Saharan Africa is projected to gain 748 million urban residents between 2025 and 2050.
• The World Bank says the population growth could create jobs and support economic growth if governments invest in infrastructure, transport and affordable housing.
• More than 15,000 towns across the region offer opportunities for targeted investment and economic development.
• The report urges governments to improve urban planning, property tax collection and access to private financing.
• How cities manage expansion will determine whether rapid urbanisation creates better jobs and economic opportunities.

MAIN STORY

Sub-Saharan Africa is projected to add 748 million urban residents between 2025 and 2050, creating an opportunity for economic growth and job creation if governments invest in infrastructure, housing and transport systems that connect people to employment.

The projection is contained in a new World Bank Group report titled Sub-Saharan Africa’s Urban Awakening: Catalyzing Economic Growth and Job Creation, released on Thursday.

The report said rapid urbanisation could create more and better jobs for the region’s growing young population, but warned that governments must plan ahead and direct investments towards locations where businesses can operate close to workers and markets.

It identified infrastructure, public transport, affordable housing, land management and improved urban planning as critical to making cities more productive.

The report also found that urban households already spend considerably more per adult than equally educated rural households, reflecting their access to more and better employment opportunities.

World Bank Group Managing Director and Chief Knowledge Officer, Paschal Donohoe, said the region’s urban transition could transform its jobs market if governments introduced the right investments and reforms.

He identified infrastructure, land, connectivity and financing as areas where improvements could attract private capital, raise productivity and create formal employment for millions of young Africans.

THE ISSUES

Urban population growth does not automatically create jobs

The projected addition of 748 million urban residents represents a major shift in where people will live and work across Sub-Saharan Africa.

However, the World Bank’s central argument is that population growth alone will not deliver economic benefits. Cities must provide the conditions for businesses to expand and workers to reach employment opportunities.

When businesses and workers are located far apart, poor transport links, inadequate housing and weak infrastructure can make economic activity more difficult and expensive.

The report therefore recommends investments that allow firms to cluster in accessible locations, with workers able to reach jobs more easily.

This includes improving public transport, expanding affordable housing and reforming regulations that prevent businesses and workers from locating closer to economic opportunities.

Different cities need different investment priorities

The report said governments should not apply the same development approach to every urban area. Major cities, expanding urban outskirts and smaller towns face different challenges.

In major cities, it recommended developing accessible, job-rich clusters through investments in infrastructure, public transport and affordable housing.

For rapidly expanding city outskirts, the World Bank advised governments to establish road networks and reserve land for essential infrastructure before informal development becomes entrenched.

The report also highlighted the economic potential of more than 15,000 towns across Sub-Saharan Africa, many of which receive less attention in urban development planning.

It recommended prioritising towns along transport corridors and those close to existing economic opportunities for targeted infrastructure investment.

WHAT’S BEING SAID

“Stronger urban governance, more predictable financing, and greater accountability are essential to turn rapid urbanisation into better infrastructure, more investment, and ultimately more and better jobs.” – Mark Roberts, World Bank Senior Urban Economist and co-author of the report.

WHAT’S NEXT

The World Bank said governments would need to strengthen urban governance and financing systems to manage the expected population growth.

One recommendation is improved property tax collection, which could increase the ability of cities to raise revenue, strengthen their creditworthiness and attract private investment.

The report also called for greater use of public-private partnerships to finance infrastructure in strategic urban locations.

For smaller towns experiencing rapid growth, it recommended establishing appropriate governance structures and financing mechanisms to provide essential services and manage expansion.

The report stressed that decisions taken now would shape the region’s urban development for generations, making early infrastructure investment and stronger institutions important to the long-term outcome.

BOTTOM LINE

Sub-Saharan Africa’s projected addition of 748 million urban residents could expand its workforce, consumer markets and economic activity. But the opportunity depends on whether governments can build cities and towns where businesses can grow and people can access jobs. Without effective planning, infrastructure and financing, rapid urbanisation may increase pressure on already stretched urban services without delivering the employment gains the region needs.

Source: NAN