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
Expanding school feeding in Nairobi’s informal settlements
On 4 February 2026, LVCT Health and ACRC convened a validation workshop to review findings from a pilot study examining the potential of school feeding programmes in Nairobi’s informal school sector.
Empowering Mogadishu’s young people in civic activism and urban citizenship
Building on ACRC’s research in Mogadishu, the Heritage Institute for Policy Studies organised a three-day workshop on “Empowering youth for civic activism and urban citizenship”, in collaboration with ACRC and the Somali Gender and Equity Movement (SGEM).
Watch: Water, sanitation and dignity in Mukuru Viwandani
A new video showcases the power of collaboration between government, civil society organisations, development partners and local communities in delivering transformative and inclusive water and sanitation services to marginalised residents of the Mukuru informal settlements in Nairobi.






