Industrialization could help Africa’s cities
Cities in sub-Saharan Africa are growing fast. Yet urban economies across the region are markedly different from those of other cities around the world: they are more expensive to live in and less industrial.
One estimate suggests that food and drink cost 35% more in real terms in sub-Saharan African cities than in other countries, while housing is 55% more expensive. The average urban household in sub-Saharan Africa spends 39% to 59% of its budget on food alone.
The high price of basic goods and services means that people living in African cities have little money to spend on reducing risk, such as upgrading their homes, preventative health care or buying insurance.
Urbanization has historically been closely linked to industrialization. In sub-Saharan Africa, urbanization is taking place without industrialization. This means that jobs and livelihoods too often remain low-skilled and poorly paid. Without the opportunity to develop skills and organize collectively, workers exert little influence over working conditions.
There are ways around these problems. Manufacturing jobs offer income security and skill development. Local employers in the public and private sector benefit from new knowledge and skills, while workers can accumulate capital. This offers a path out of poverty.