DRIVERS OF POVERTY REDUCTION IN SUB-SAHARAN AFRICA IN THE WAKE OF RAPID URBANIZATION

Back to Page Authors: Beryl Adongo Oranga

Keywords: urbanization, economic growth, poverty, sub-saharan Africa

Abstract: “Poverty is the worst form of violence”—Mahatma Gandhi. It has been almost two decades since the MDGs were first developed and more than four decades since the first United Nations conference to address the effects of urbanization was held, and despite the presence of these goals and their subsequent interventions, the number of people living below the poverty line continues to grow in Africa. The problem of poverty is further exacerbated by high urbanization rates, as the United Nations (2015) estimates that two-thirds of the world population will reside in cities in 2050. Africa and Asia are projected to experience the highest rates of urbanization, and by 2050, Africa will have 56 percent of its population living in cities, compared to 40 percent currently (Ibid.). While theory suggests that urbanization is associated with economic growth which, subsequently, lowers poverty, similar studies in Africa have produced mixed results, indicating a lack of an underlying theory that explains poverty reduction in the region. Although studies have shown that Africa is urbanizing without growth and structural transformation (Castells-Quintana, 2018, Henderson, 2014, Jedwab, 2013, UNECA, 2017, Hommann & Lall, 2019), others have shown that there is growth, but that it is not sufficient to alleviate poverty (Dang & Dabalen, 2017, Rodrik, 2016, Njoh, 2003, Kessides, 2006). This situation presents an alarming picture needing an urgent and different approach. It also raises the question of why this is so. What factors should be considered to determine targeted policies? And how can this be achieved? While there have been vast literature examining the relationship between urbanization and growth, little has been done looking at the intersection between urbanization, growth, and poverty in Sub-Saharan Africa. Building on the existing literature, this paper proposes to conduct a study on the determinants of poverty reduction through the lens of urbanization and economic growth. It seeks to answer the question: What are the drivers of poverty reduction in SSA in the wake of rapid urbanization? This study contributes to the literature by performing a multi-level analysis on both the macro and micro levels. On the macro level, countries are categorized and analyzed by their urbanization levels, primacy levels, and geographical characteristics, and on the micro level, six samples countries have been selected for a case study analysis. Panel data and cross-sectional data spanning 2000-2017 will be used to conduct the study. The study hopes to inform policies not only on avenues for poverty reduction in relation to urbanization but also on the manifestations of poverty that need the most attention.