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
Reflections from the ACRC Kampala cross-project learning workshop
ACRC held a cross-project learning workshop in Kampala during the last week of April 2026., bringing together the Kampala city team, representatives from the action research projects, and members of the senior management and central uptake teams.
Navigating different approaches to urban reform in Harare
Urban reform in Harare is approached by the ACRC action research team from the recognition that the city is shaped less by formal plans and policies than by everyday practices of negotiation, self-provisioning and incremental adaptation across multiple systems.
What is urban development? Reflections from Zimbabwe and Harare
“Urban development” is a term that is widely used but rarely unpacked. It often evokes images of new roads, housing estates and expanding city skylines. Yet, when viewed from the perspective of cities like Harare, urban development is far more complex, contested and dynamic than conventional definitions suggest.






