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
Podcast: The value of cross-city learning exchanges
ACRC city managers Jack Makau and Temilade Sesan join Tom Goodfellow to talk about the action research that’s underway in their cities, along with how urban communities in informal settlements can build power through their own forms of knowledge and data collection, and how two-way exchanges between cities can strengthen this process.
Supporting community responses to kush in Freetown: Next steps
Although ACRC’s funding of action research in Freetown on the synthetic drug, kush, came to an end in September 2025, its legacy continues. There is ongoing work to address the challenges of reducing kush use, building on the gains of the action research.
Unpacking the complexity of informal urban land governance in Kisenyi informal settlement, Kampala
During ACRC’s foundation phase, the Kampala land and connectivity domain research revealed how relevant and critical local councils (LCs) are in land transfers, especially in informal settlements. To deepen our understanding of this challenge, we are conducting action research in Kisenyi informal settlement in Kampala.






