West African Studies Africa’s Urbanisation Dynamics 2022 The Economic Power of Africa’s Cities

OECD · United Nations Economic Commission for Africa · African Development Bank

pri 2022 · OECD Publishing

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This report provides a new perspective on Africa’s urban economies that is unique in its breadth and level of detail. Based on data from more than 4 million individuals and firms in 2 600 cities across 34 countries, it presents compelling evidence that urbanisation contributes to better economic outcomes and higher living standards. It shows that across most socio-economic dimensions, cities significantly outperform the countries in which they are located. In Africa, urbanisation accounts for approximately 30% of the growth in per capita gross domestic product (GDP) over the past 20 years. Importantly, the gains from urbanisation on economic performance and quality of life extend beyond city boundaries, also benefiting rural areas. The report also shows that transnational clusters of cities are emerging along coasts as well as inland, offering new opportunities for economic development. Based on these findings, the report sets forth policy priorities at national and local levels that are essential to realise the potential of urbanisation. Among these, it argues that the role of cities should be fully anchored in national development planning. Moreover, local governments need greater fiscal and administrative capacity to become key actors in economic development.