Inclusive growth, informal settlements slowing economic growth of cities

Urban settlement experts have identified inclusive growth, informal settlements, unregulated urban growth especially in young cities, and infrastructure deficit as major factors slowing economic growth and prosperity of African cities, including Lagos, Nigeria.

In the developed countries of the world, rapid urbanization is an economic asset because of the agglomeration of economic activities and the economy of scale which reduces costs, leading to increased productivity, more income and improved standard of living for city dwellers.

But in Africa, most cities are urbanizing fast, but that process merely translates into nominal growth of the cities, making it a liability to both residents and the government because instead of economic growth and prosperity, what is seen is lack of inclusive growth and widespread poverty.

Essentially, urbanisation is a key driver for economic development and prosperity. There are, however, challenges and opportunities in the rapid growth of African cities, including Lagos, which remains one of the fastest growing cities in Africa.  

Lagos was, a couple of years ago, selected as one of the 100 Resilient cities of the world. Megacities are described as cities with more than 10million people and, so, Lagos with an excess of 20 million could be referred to as a mega city, which is rapidly developing under the keen and watchful eyes of investors.

For inclusive growth to happen, governments have a responsibility to focus on realizing the potential of these cities as inclusive and resilient centres of economic growth and job creation. Taibat Lawanson, a lecturer at the University of Lagos, says there is need for the government to recognise that megacities have, at their core, the critical question of who the cities are being built for.

Infrastructure deficit is obvious and it is an area that presents an opportunity for governments to partner with the private sector to deliver world-class infrastructure ranging from transportation, power, sanitation/waste management to softer infrastructure including health/medical, educational and recreational facilities.

Population growth typically outpaces the infrastructure growth which often needs to be addressed against the backdrop of limited or dwindling revenues. This is generally the main cause of informal settlements which  is in clear evidence all around Lagos,constituting a threat for both the settlers and residents.

Rapid urbanization, however, presents some level of opportunities. Udo Okonjo, CEO/Vice Chair of Fine and Country West Africa, believes that creatively harnessing widespread informality and youth populations can be used to address some of the unemployment gaps, pointing out that youth population is an opportunity  that can be realized with a deliberate plan covering good education, vocational, and technical training.

“Adopting emerging models of public-private partnerships to help fill infrastructure gaps is another way out”, she said, adding,  “the real target is for us to build cities without slums, addressing a significant social and environmental hazard”.

In dealing with the challenges, Okonjo says it’s also important to opt for lower environmental risk options while integrating citizens’ well-being into planning when developing these cities so that the future is not sacrificed on the altar of mega designs and developments.

“Given the growing youth population and the changing lifestyle, millennial housing requirements need to be considered against our old housing development policies; from our perspective, the zoning of low density versus high-density housing to accommodate individuals now living alone no longer needs to be considered”, she advises.

CHUKA UROKO