Is Africa's future urban?

Africa is experiencing a rapid transformation as urbanization and industrialization reshape the continent's demographic landscape. The United Nations Economic Commission for Africa projects that by 2035, Africa's urban population will reach 49 percent, a significant increase from the 31 percent recorded in 1990. The implications of this urban shift are far-reaching, affecting various sectors such as housing, employment, and healthcare. In a recent interview with CNBC Africa, Patrick Sabatigita, a YPO member and founder of the Ujenge Group, shed light on the challenges and opportunities associated with Africa's urban future. Sabatigita emphasized the importance of aligning policies and strategies to create a conducive environment for urban development. He commended Rwanda for its efforts in expanding special economic zones and developing secondary cities to alleviate the pressure on the capital city, Kigali. By revitalizing industrial areas and creating new employment opportunities, Rwanda aims to stimulate economic growth and empower its citizens to pursue homeownership. However, Sabatigita acknowledged that attracting capital remains a major challenge for developers across the continent. While there is potential for investment in real estate and housing markets, the lack of reliable data and proven track records deter potential investors. To address this issue, Sabatigita proposed the establishment of an information platform that consolidates land and property transaction data, construction costs, and market trends. By providing investors with comprehensive and real-time information, African countries can enhance their attractiveness to foreign investment and facilitate access to mortgage financing. In addition to housing and employment opportunities, urbanization also raises concerns about access to basic services such as healthcare. Sabatigita emphasized the importance of integrating health services into urban development plans to ensure the well-being of the growing urban population. While Rwanda has made strides in healthcare coverage through initiatives like mutual insurance schemes, there is room for improvement in leveraging private sector participation to enhance healthcare accessibility and affordability. As Africa navigates the complexities of urbanization and industrialization, collaborative efforts between the public and private sectors will be essential to realize the full potential of urban growth. By addressing challenges related to capital investment, data transparency, and basic service provision, African countries can harness the opportunities presented by urbanization for sustainable development and economic growth.