Researchers from ACRC’s structural transformation domain have published a new working paper, looking at the effect of climate change on city-wide labour productivity in Accra, Ghana.
Authored by Michael Danquah, Bazoumana Ouattara, Williams Ohemeng and Alfred Barimah, the study was conducted in partnership with UNU-WIDER. The paper focuses on the interplay of urbanisation, climate change and structural transformation in the Accra city region, which is home to around 28% of Ghana’s business establishments.
In comparison to most African countries, Ghana has been relatively effective in harnessing the benefits of urbanisation. This has produced some agglomeration effects and economies of scale in the Accra city region, which have enhanced productivity in densely populated urban areas. However, the city has a lower level of development than is expected, given its level of urbanisation, and its unemployment rate is almost double the national average.
Climate change has led to increased frequency and magnitude of weather and climate events in Accra, including floods, rainstorms and heatwaves. The city’s location at the mouth of the Odaw River, along with its low-lying coastal landscape and poor infrastructure, means that it is especially vulnerable to flooding. Seasonal flooding brings widespread destruction in its wake, disrupting economic activities and leading to significant losses of life and property.
Barriers to structural transformation
Multiple, interlinked challenges hinder African cities from achieving economic transformation. In many cases, investment in key urban infrastructure and services – including connectivity, transportation, water, waste management and housing – has not kept up with rapid urbanisation.
A lack of inclusive growth and failure to create productive jobs is also leading to rising rates of urban poverty in African cities. In many, the shift from low to high productivity in sectors such as manufacturing and services has proven difficult. Instead, there has been movement from low-productivity agricultural activities towards low-productivity, informal and unorganised economic activities, signalling a lack of structural transformation.
The climate crisis has only exacerbated existing obstacles to structural transformation. A greater frequency of climate-related shocks – such as floods, droughts and heatwaves – can have significant effects on economic activities. Along with significant disruption, including damage to public and private assets, severe climate events can result in devastating human losses and may ultimately render some cities unliveable.
How do climate shocks impact urban productivity?
Many studies have been undertaken that look at the broader impacts of climate change on areas such as urbanisation, agriculture and migration, usually based on country or cross-country data. However, there has been a lack of research examining the relationship between climate and city-level labour productivity or structural transformation in Africa.
Recognising this gap, this paper seeks to understand the relationship between climate-related shocks and labour productivity in Accra.
The research involved analysing business and climate datasets, along with conducting key informant interviews with representatives from city enterprises, authorities and agencies. It emerged that rainfall contributes substantially to vulnerability and risk in Accra, with rainstorms and floods considerably reducing labour productivity and hindering the growth of high-productivity sectors. The effect of temperature, however, was not found to be significant.
“Climate proofing” African cities
The authors highlight an urgent need to invest in adaptation to mitigate the impacts of climate shocks in Accra, and to create a city that is more liveable, sustainable and able to facilitate economies of scale and thriving high-productivity sectors.
They argue that the city government needs support in building capacity and finance to drive forward urban planning policies that support climate resilience. They also recommend strengthening data monitoring systems, investing in more research to improve understanding of climate impacts, and adopting green and low-carbon initiatives.
With its focus on the interplay between climate impacts and structural transformation in Accra, the paper’s findings are pertinent to discussions around how African cities can integrate climate change considerations into urban planning strategies and policies. Better understanding of the relationship between climate and structural transformation could be significant in developing strategies to “climate proof” the city to enhance resilience, productivity and prosperity.
Header photo credit: aroundtheworld.photography / Getty Images (via Canva Pro). Fisherman’s Wharf in Accra, Ghana.
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