Magicians, powerbrokers and workhorses

The article discusses the disconnect between rapid urbanisation and the lack of structural transformation in sub-Saharan African cities. While urbanisation typically coincides with a shift of workers into more productive sectors like manufacturing and services, this transformation has not materialised in the region, leading to a shortage of well-paid, formal jobs. Through research in six African cities, the authors identify three types of enterprises—“magicians” (productive, export-oriented firms), “workhorses” (informal local businesses), and “powerbrokers” (dominant domestic firms with political ties).

The growth of magicians is crucial for structural transformation, but they remain scarce due to inadequate infrastructure and limited political support. Powerbrokers, meanwhile, benefit from closed relationships with elites, often resulting in corruption and poor service delivery, while workhorses face unstable relationships with authorities. The article argues that to achieve economic transformation, African cities must foster conditions that support the growth of magicians and ensure more inclusive and accountable governance structures.

Abstract based on original source.