Urbanization and Inclusive Economic Growth in Africa

Abstract

Urbanization is a mega-trend with profound implications for Africa’s growth and transformation. Africa’s rapid urban growth presents considerable demands for employment, services and infrastructure, but also advantages for economic growth. While urbanization is necessary for structural transformation, it is not sufficient. The quality of cities can facilitate the growth of productive economic sectors or can constrict it. Despite the importance of cities for Africa’s inclusive growth agenda, there remain policy disconnects between spatial and economic planning. Currently, African national development plans consider urban issues as a sectoral issue, with a limited role in economic transformation and industrialization. Under national development planning, a cross-sectoral and strategic perspective is required to link urbanization and inclusive economic growth.