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
Unravelling a complex web: Electricity subsidy experiences in Kampala’s informal settlements
Electricity subsidies may seem like a straightforward solution to the challenge of supplying electricity to Kampala’s informal settlements. However, the contextual realities of the electricity supply chain paints a slightly different story.
Mapping electricity access in Kampala’s informal settlements: Kamyufus, subsidies and community perceptions
Through our research into the electricity supply and distribution value chains in Kampala’s informal settlements, we are trying to learn more about why electricity subsidies fail to reach those in most need – and the alternatives that residents turn to, in order to gain access to power.
Equity and digitisation in the property tax system in Lagos: A win-win for all?
Equitable taxation is about building fairer systems which align with a much-needed path to inclusive urban development. The Lagos property tax system can be improved to facilitate a win-win for all urban residents.






