Luxury or necessity? The dynamics of urbanization in Sub-Saharan Africa

Relevance. Urbanization is a crucial transformative process that plays a key role in achieving sustainable economic development in the global economy. An urbanized economy can serve as a vital structural mechanism to foster inclusive economic growth by generating employment, reducing income inequalities, and alleviating poverty. However, Sub-Saharan Africa (SSA) is characterized by a unique and slow urbanization process that sets it apart from other regions, despite steady economic growth in recent decades. Research objective. This study aims to empirically assess the patterns and determinants of urbanization in SSA, focusing on the question of whether it is driven primarily by mere economic survival or by improvements in quality of life. Data and methods. Based on Lee’s rural push-urban pull migration theory, the Common Correlated Effects Mean Group estimator was used to analyze data from 44 SSA countries between 1996 and 2022. Results. Access to basic amenities has a positive and significant impact on urbanization in Africa, although the effect was more modest for improved amenities. Additionally, the agricultural sector was found to hinder urbanization, while the manufacturing and services sectors promote it through structural transformation. Conclusions. The paper concludes that urbanization in SSA is driven by both the need for economic survival and the desire to improve quality of life. To enhance the region's global competitiveness, it is crucial to invest in and develop critical infrastructure that supports the urbanization process.