Integrated urban services can boost regional development in Africa

South Africa’s export base remains narrow and dominated by natural resources and commodities. A more diverse export basket would improve economic stability and expand employment. Africa’s fast-growing urban population affords abundant opportunities for South Africa to boost trade with its neighbours in all kinds of consumer and producer services. Yet, the country needs to avoid extractive trading patterns that foster consumerism without improving the real economy of these countries. Stronger relationships involving the exchange of knowledge and expertise would be mutually beneficial in enhancing the trajectory of African urbanisation and thereby unlocking gains for productivity and jobs. In other words, South African service providers should help to design and develop functional cities and not simply supermarkets and shopping malls.

This article is based on a paper titled ‘Building Malls or Metros?’ produced for the SA-TIED programme (Southern Africa: Towards Inclusive Economic Development). It examines the reasons why South Africa should encourage the providers of urban services to trade elsewhere in Africa and review the experience of companies that have tried to do so. It also identifies examples of relative success and failure and concludes by considering what government policies could do to support the provision of better coordinated urban services across the region.

Abstract based directly on original source.