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Sub-Saharan Africa's urban population has surged from 170 million in 1975 to 913 million in 2025, and is projected to reach 1.7 billion by 2050. This rapid growth presents a prime opportunity to drive job creation, but governments must actively invest in infrastructure, urban planning, and private capital. The new World Bank report, Sub-Saharan Africa’s Urban Awakening, emphasizes the need for productive and better-paying jobs to address high unemployment among the region's young people.

While economic gains from this urban expansion are expected, productivity remains low, incomes have grown slowly, and many workers remain in informal, poorly paid positions. Average gross domestic product per capita has remained stagnant at around $4,400. To transform this urban growth into employment opportunities, the report identifies three key areas for government focus.

First, public investment should target locations where it can stimulate both job creation and private business growth. Developing clusters that integrate firms, workers, infrastructure, services, and transport links is recommended. Second, governments should plan urban expansion proactively, before unregulated development leads to higher infrastructure costs.

Currently, most land needed for future urban growth remains undeveloped, offering an opportunity to reserve space for essential infrastructure. Urban areas are expected to expand by 90% between 2025 and 2050, with most of this growth occurring outside existing city boundaries. Third, governments should prioritize smaller towns that could become centers of employment and enterprise, or serve as connections between communities and larger economic markets.

The report identifies unique challenges for major cities, their expanding outskirts, and smaller towns. In cities, inadequate transport infrastructure and restrictive land access regulations hinder the integration of businesses and workers. Unplanned growth on urban outskirts raises the cost of providing roads and services. Smaller towns with economic potential have received less attention despite their potential advantages.

The World Bank proposes targeted infrastructure investments and regulatory reforms for these locations to better support private development. The report cautions against trying to address all issues at once, instead advising governments to carefully select projects that can unlock private investment and generate jobs. Early planning is crucial to shape growth before costs rise.

Paschal Donohoe, Managing Director and Chief Knowledge Officer of the World Bank Group, stressed that the report draws on input from governments and private-sector partners across the region, and that the bank will continue working alongside them to shape Africa's urban transformation.