Sub-Saharan Africa’s cities face opportunity as 748 million more urban residents arrive

The report, Sub-Saharan Africa’s Urban Awakening: Catalyzing Economic Growth and Job Creation, finds that cities already provide stronger economic prospects than rural areas.

Sub-Saharan Africa's cities could generate more jobs and stronger economic growth if governments concentrate investment where businesses can cluster and workers can reach employment easily, according to a new World Bank Group report. The region is projected to add 748 million urban residents between 2025 and 2050, creating a limited window to shape how expanding cities serve a growing young workforce. Decisions about infrastructure, housing and transport will influence whether this population growth translates into higher productivity and greater private investment.

The report, Sub-Saharan Africa's Urban Awakening: Catalyzing Economic Growth and Job Creation, finds that cities already provide stronger economic prospects than rural areas. Urban households spend considerably more per adult than rural households with similar education levels, reflecting access to more and better jobs. Making those opportunities available to more people requires policies that bring firms, workers and essential services closer together.

Much of the infrastructure needed for the region's future cities remains unbuilt, giving governments room to guide development before costly settlement patterns become established. World Bank Group Managing Director and Chief Knowledge Officer Paschal Donohoe said present-day decisions about where and how cities grow could support employment, productivity and investment for decades. The report recommends different approaches for major cities, expanding urban outskirts and smaller towns, recognising that each faces distinct challenges.

Connect workers with business clusters in major cities

Large cities need infrastructure, reliable transport and affordable housing near employment centres so businesses can recruit workers and residents can reach jobs more easily. Regulations also need improvement to allow firms and households to locate closer to economic opportunities, helping accessible business clusters develop and expand. These measures would make urban investment more productive by strengthening connections between places of work and the people seeking employment.

On rapidly growing city outskirts, governments should establish road networks and reserve land for essential infrastructure before development becomes difficult to reorganise. Early planning can guide expansion and preserve space for the connections and services that new neighbourhoods will need. The report places particular emphasis on acting before settlement patterns become entrenched, when authorities have greater scope to influence future growth.

Direct town investment towards stronger economic opportunities

Sub-Saharan Africa has more than 15,000 towns, whose contribution to economic development often receives less attention than that of major cities. The report recommends concentrating infrastructure investment in towns with strong economic and geographic potential, particularly those along transport corridors or close to other sources of economic activity. Better planning and targeted infrastructure in these locations could help businesses expand and create employment.

Residents of towns with fewer economic opportunities would benefit from investment in education and health that improves their ability to connect with stronger labour markets. Rapidly growing towns also need suitable urban governance arrangements and financing tools to prepare for expansion and manage development effectively. This approach links spending decisions to local prospects and residents' access to opportunities beyond their immediate surroundings.

Stronger city finances can support infrastructure and private investment

Mark Roberts, World Bank Lead Urban Economist and the report's lead author, said effective urban growth depends on stronger institutions, predictable financing and greater accountability. Practical measures include using low-cost technology to modernise property tax systems, helping local governments raise revenue and improve their creditworthiness. Stronger municipal finances could attract private capital, including public-private partnerships for investment in key city locations.

The report calls for early action that combines targeted infrastructure spending with better planning, stronger institutions and more reliable financing. Mobilising private investment forms part of that effort, supported by local authorities equipped to manage growth and deliver infrastructure. With urban development taking shape now, these choices will influence economic opportunity and access to better jobs for generations.