Chapter Four

Employment and Livelihoods

Connecting Africa’s Rural and Urban Areas for Rural Revitalization

Xinshen Diao, Paul Dorosh, Mekamu Kedir Jemal, Adam Kennedy, and James Thurlow

Transforming traditional agriculture is essential to generating better rural employment opportunities and will be at the heart of revitalizing Africa’s rural areas.

KEY FINDINGS

Many African countries have experienced strong economic growth and rapid urbanization, but not the industrial growth that has generated employment in other regions. Urban migrants working in the services sector rarely find jobs that are demonstrably better than those in rural areas or have much growth potential.
Rural incomes in Africa south of the Sahara come predominately from agriculture (from crops, livestock, and wage labor). Policies that increase agricultural productivity and improve market access are vital to creating more and better employment opportunities in rural areas, where poverty is high and youth populations are large.

Rapidly growing demand for food in urban areas offers promise for expansion of agro-processing and other agribusinesses. Growth in these sectors could support vibrant rural and small-town economies.
Connectivity is improving, but many rural residents have little access to urban markets. About half of Africa’s rural population lives far from urban centers.
Integrating rural economies with small cities and towns shows promise for transforming rural Africa. Increasing rural–urban connectivity through roads and other infrastructure can drive rural growth and job creation.

KEY RECOMMENDATIONS

Nest rural employment strategies, such as policies supporting agricultural commercialization and off-farm employment, within broader strategies for agricultural transformation and development.
Modernize and diversify agriculture to promote youth employment, including adoption of modern technologies and development of high-value crops.

Make complementary investments in basic services (electricity, communications) and human capital (education, healthcare) to promote vibrant rural areas and support better employment options.

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