Structural transformation
Structural transformation involves the movement of workers from low-productivity sectors (such as agriculture), to high-productivity (industrial, urban-based) sectors, leading to job creation, improved labour productivity and poverty reduction.
In much of Africa, urbanisation has taken place without structural transformation, leaving high numbers of city dwellers trapped in low-productivity informal employment. To create growth and reduce poverty, it is therefore essential to disentangle the connections between cities and structural change.
ACRC will look at how key city systems – including urban planning, infrastructural service provision (such as transport, energy, water and waste management), productivity-enhancing policies and regulatory frameworks, and educational and technology accumulation strategies – need to be pulled together to facilitate structural transformation. Our approach considers how the political economy of cities affects the potential for structural transformation. Success requires ruling elites to commit to investing in the public infrastructure necessary for firms to operate productively, and to building productive state–business relations. This can stand in tension with the incentives to extract rents from firms and household enterprises and to enter into collusive relationships, such as offering subsidies and contracts in return for political and personal financing.
LATEST NEWS from ACRC
Is knowledge power? Reflections on water, sanitation and survival in informal settlements
When the ACRC Lagos water and sanitation (WASH) team visited Mukuru in Nairobi, for a learning exchange, we carried a simple question: how do informal settlements secure dignified water and sanitation access in cities that often overlook them?
From Mukuru to Okerube: Reflections from the Nairobi–Lagos WASH exchange
In early February, the Akiba Mashinani Trust (AMT) led a nine-person delegation from Nairobi for a weeklong learning exchange visit to Okerube informal settlement in Lagos.
Podcast: Building community-driven WASH solutions in Lagos
In the informal settlement of Okerube in Lagos, the community faces significant challenges in accessing clean water and sanitation, which disproportionately impact women and children. An ACRC action research project is aiming to address these issues through establishing a sustainable, community-driven social enterprise model.






