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The World Bank Group is calling for targeted investment in SubSaharan Africa’s cities to unlock economic growth, attract private capital and create employment opportunities as urban populations expand.
A report by the institution estimates that the region will add 748 million urban residents between 2025 and 2050, creating an opportunity to strengthen productivity and support its growing workforce.
The report, Sub-Saharan Africa’s Urban Awakening: Catalyzing Economic Growth and Job Creation, argues that urbanisation can become a major driver of economic development if governments make strategic decisions about infrastructure, transport, housing and urban planning.
It highlights the economic advantages of cities, where households spend considerably more per adult than equally educated rural households, reflecting access to more and better employment opportunities. Much of the infrastructure required to accommodate Sub-Saharan Africa’s future urban populations has yet to be built.
The report identifies this as an opportunity for governments to influence how cities develop and ensure that economic activity, businesses and workers are located closer together. Paschal Donohoe, World Bank Group Managing Director and Chief Knowledge Officer: “Much of the urban infrastructure needed for Sub-Saharan Africa’s future cities has yet to be built.
This creates an important opportunity: decisions made now about where and how cities grow can help create jobs, raise productivity and attract private investment for decades to come.”
The report recommends different approaches for major cities, expanding urban peripheries and smaller towns, recognising that each faces distinct development challenges.
In major cities, governments are encouraged to invest in infrastructure, public transport and affordable housing in locations that support business clusters and improve access to employment. Regulatory reforms should also make it easier for businesses and workers to locate closer to economic opportunities.
For rapidly expanding urban peripheries, the report recommends early planning to prevent unstructured development. Establishing road networks and reserving land for essential infrastructure before settlements become established can help governments manage expansion more effectively.
The report also draws attention to the economic potential of more than 15,000 towns across Sub-Saharan Africa. Rather than distributing investment equally, governments are encouraged to prioritise towns with stronger economic and geographic prospects.
Transport corridors and proximity to existing economic opportunities are identified as important factors when determining where infrastructure investment could generate the greatest returns. Targeted infrastructure and improved urban planning could help smaller towns attract businesses and create employment.
The report also highlights the importance of education and healthcare investment in towns with fewer economic opportunities, enabling residents to connect with stronger labour markets. Rapidly growing towns will also require appropriate governance structures and financing mechanisms to plan for future expansion.
This approach recognises that urban development strategies need to account for differences in economic potential rather than applying the same investment model across all locations. The World Bank Group also identifies institutional capacity and municipal financing as essential to translating urban growth into economic benefits.
Without effective governance, predictable funding and accountability, cities may struggle to provide the infrastructure and services required to support businesses and residents.
Mark Roberts, World Bank Lead Urban Economist and lead author of the report: “Africa’s urban transformation will deliver on its promise only if cities have the institutions and resources to manage growth effectively. Stronger urban governance, more predictable financing, and greater accountability are essential to turn rapid urbanization into better infrastructure, more investment, and ultimately more and better jobs.”
Among the recommendations is the use of affordable technology to modernize property tax systems. Improved revenue collection could strengthen municipal finances, increase creditworthiness and make cities more attractive to private investors.
The report also points to public-private partnerships as a potential source of investment in strategically located urban areas. The World Bank Group argues that decisions made during the current phase of urban expansion will influence the region’s economic prospects for decades.
Combining targeted infrastructure investment with effective urban planning, stronger institutions and improved access to private capital could help governments turn population growth into productive economic activity.
As Sub-Saharan Africa’s urban population expands, the ability of cities and towns to attract businesses, connect workers to employment and finance essential infrastructure will be central to creating more and better jobs.
