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
From the inside out: Why Africa’s development must be built with its people
On Wednesday 6 May, ACRC colleagues met with the former Nigerian President Olusegun Obasanjo at his Presidential Library in Abeokuta. The meeting was timely and insightful, and it turned out to be far more than a courtesy visit.
New research: What does progress look like for household microenterprises in African cities?
A new paper, led by Stephen Gelb, outlines key findings from ACRC’s neighbourhood and district economic development domain research, which looked at HMEs in five African cities: Accra, Ghana; Lagos, Nigeria; Dar es Salaam, Tanzania; Lilongwe, Malawi; and Harare, Zimbabwe.
Insights from the World Urban Forum 13: Co-producing knowledge for climate-resilient African cities
African cities are changing fast. They are expanding, absorbing new populations, confronting climate risks, and struggling with long-standing gaps in housing, infrastructure, health, sanitation and basic services. This was the central message of a WUF13 Urban Library session convened by the Centre for Housing and Sustainable Development, University of Lagos.






