Structural transformation
Structural transformation involves the movement of workers from low-productivity sectors (such as agriculture), to high-productivity (industrial, urban-based) sectors, leading to job creation, improved labour productivity and poverty reduction.
In much of Africa, urbanisation has taken place without structural transformation, leaving high numbers of city dwellers trapped in low-productivity informal employment. To create growth and reduce poverty, it is therefore essential to disentangle the connections between cities and structural change.
ACRC will look at how key city systems – including urban planning, infrastructural service provision (such as transport, energy, water and waste management), productivity-enhancing policies and regulatory frameworks, and educational and technology accumulation strategies – need to be pulled together to facilitate structural transformation. Our approach considers how the political economy of cities affects the potential for structural transformation. Success requires ruling elites to commit to investing in the public infrastructure necessary for firms to operate productively, and to building productive state–business relations. This can stand in tension with the incentives to extract rents from firms and household enterprises and to enter into collusive relationships, such as offering subsidies and contracts in return for political and personal financing.
LATEST NEWS from ACRC

Unlocking land rights for communities in Mathare, Nairobi
ACRC has partnered with Strathmore University and Akiba Mashinani Trust to equip the residents of Mathare with the tools and strategies they need to secure greater recognition of their land tenure.

Transforming informal settlements in Lagos through community-driven WASH innovation: The Okerube project
The “Informal Settlements as Spaces of Transformative Agency” project focuses on the Okerube community in Lagos to challenge dominant narratives and demonstrate how bottom-up, community-led governance models can deliver sustainable and inclusive water, sanitation and hygiene (WASH) solutions in informal urban settlements.

Creating the conditions for change in Mathare informal settlement, Nairobi
SDI Kenya, through ACRC, is aiming to co-develop solutions with Mathare community members, by devising a holistic waste management system in the area.