Structural transformation

This domain report presents a cross-city analysis of the spatial distribution of economic activities and the political economy drivers and constraints shaping structural transformation in six African cities (PDF, 3.11MB): Accra, Addis Ababa, Dar es Salaam, Harare, Lagos, and Nairobi. The main finding is that urbanisation in these cities has largely involved a shift from agriculture into low-productivity activities, with economic activity highly uneven across urban spaces. Productive transformation tends to be limited to a few key municipalities, where location significantly influences business productivity.

The report highlights how different political settlements, except in Nairobi, have fostered collusive state business relations that favour non-productive services over industrial growth. Infrastructure and basic service delivery are also shaped by political incentives, often resulting in poor provision that discourages high-productivity investment. Nairobi stands out as an exception, where a strong transnational elite has pushed for growth in productive sectors like IT, suggesting that political power configurations play a critical role in shaping urban economic outcomes.

Abstract based on original source.