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
Governing contested markets: City authority, trader agency and SME policy in Harare
In this blog miniseries looking at urban markets in Harare, this fourth post reflects on contested market governance in the city.
Unlocking progress: Lessons on collective climate action from Harare
As part of a miniseries covering progress in the ISCCA project in Harare, this fourth blog post shares lessons on the importance of political alignment from two informal settlements.
WASH in urban markets: Governance lessons from Kuwadzana 4 Market, Harare
In this blog miniseries looking at urban markets in Harare, this third post takes a closer look at market sanitation.






