Smart Urban Economy in Africa

Studies have shown that the association between the level of urbanization and GDP per capita is positive. Countries with higher GDP growth experienced faster urbanization, and rapid urbanization came hand-in hand with higher growth in industries and services. This is primarily because urbanization and structural transformation are two processes going hand in hand and mutually reinforcing each other. Urbanization is a powerful force for transformation as it enables agglomeration that facilitates industrial productions and economies of scale. This chapter aims at investigating the urban opportunities in traditional pattern of growth with the urbanization process in Africa. It then highlights the flip side of rapid urbanization and how national economies might miss out to gain from the urban advantage. It also examines the phenomenon of ‘consumption cities’ and absence of industrialization in urban centres. Finally, the chapter provides recommendation to seize the urban advantage in Africa in order to achieve liveable Smart Cities that undergo inclusive sustainable economic growth and development.