West African Urbanization: Rethinking Progress in the Face of Lagging Development

Photo by Pius Utomi Ekpei/AFP/Getty Images, Center for Strategic and International Studies

Introduction

50 years ago, West African politicians and foreign investors made a dubious bet on the prospects of urbanization. They promised that urbanization would spark much needed economic development and facilitate the shift away from agriculture to a service and intelligence-based economy throughout West Africa. Despite 50 years of entertaining rapid urbanization, West Africa has continued on a downward trend characterized by volatility and poverty; urban centers have failed to absorb the ever-increasing labor force, exacerbating inequality, unemployment, and deepening poverty (Boadi 2005). The issue is that West Africa urbanized prematurely, and while urbanization is generally an economic growth multiplier, the sufficient conditions for urbanization have not been met, which is why 40% of people in West African cities lack access to clean water, substantially higher than that of rural centers (Oluwatayo 2018). Instead, West Africa should emphasize domestic agriculture growth. By regulating produce markets, implementing tariffs on international companies, and providing subsidies for the purchase of farmland, West Africa can reinvigorate development and facilitate a sustainable and longer-term shift to industrialization.

Political and Economic Context

Home-grown, local agriculture is increasingly rare in West Africa primarily because of the scope of foreign land acquisition by investors. Millions of hectares of arable land are bought or rented annually, much of which is repurposed for commercial agriculture by massive corporations (Onaja 2015). When land is not repurposed for commercial agriculture, it is transformed into cities as urban hubs grow on prime farmland since they tend to form near crucial water bodies and on fertile soil, where many people can live together (Tacoli 2019).

These factors make it incredibly difficult for smaller farmers to access arable land and for the ones who do have land to compete with multinational corporations (MNCs) with newer technology and optimal processes. The end result is encouraging a local divestment from agriculture in West Africa, pushing many agricultural workers into urban slums in search of better work. Foreign Direct Investment (FDI) in West Africa has been instrumental in driving up unemployment in the region (Oluwatayo 2018). And, while West Africa gave up the reins over their most productive industries to MNCs, in exchange, many were left with food insecurity as much of the crop produced is exported out of West Africa to improve investors' bottom line. This is why in Nigeria, the food supply is expected to drop by 13% by 2030, and millions will go hungry (Barthel 2019).  This problem is simply exacerbated by rapid population growth. The Nigerian population is expected to reach 377 million, surpassing that of the United States, within three decades (Statistica 2023).

Another key driver of the problematic urbanization trend in West Africa is politicians. Often, bad policies can be good politics. And, politicians in West Africa increasingly prioritize urban areas as more people and thus more potential voters live in these urban regions. As a result, West African governments intervene in local agricultural markets, imposing heavy taxes, tariffs, and price restrictions on farm produce to fund cities and benefit urban consumers (Bjornlund 2020). This overregulation and red tape on West Africa’s prime industry makes agriculture increasingly costly, destroying West Africa's competitive edge in global markets. Thus, when West African nations finally began opening up to international trade, international companies decimated local producers, causing local agricultural industries to collapse (Toulmin 2003).

Impact and Considerations for Future Development

While most of the developed world allowed their agricultural sectors to grow first, West Africa urbanized prematurely, and its economy has paid the price. Should the rural agricultural sector have developed adequately, there would have been a proper economic base to support schools, markets, hospitals, infrastructure, and welfare (Bjornlund 2020). However, since West Africa urbanized prematurely, agriculture failed and left the economy without its essential precondition—a stable base of revenue, market activity, and production to use for development (Toulmin 2003). In fact, during this critical development phase, growth generated by the agricultural sector is estimated to be 11 times more effective at reducing poverty in West Africa than that in any other sector (Mayaki 2016). In the long term, despite rising productivity and growth on paper, the food supply is insufficient to keep up with demand and offset West Africa’s developmental challenges (Staatz 2016). Rural migrants will continue to move to cities hoping for better lives but will only end up more food insecure than before. Furthermore, reliance on creditors is not an option. West African food demand far exceeds existing supply, causing prices to rise too fast for the average citizen (Bjornlund 2020). For these reasons, West Africa is less industrialized now than it was four decades ago, and has one of the world's lowest levels of human development (Tafirenyika 2016).

Fundamentally addressing these challenges requires a paradigm shift in development priorities. To reverse the shift away from agriculture, artificial incentives must be set in place which encourage a pivot back to the agricultural sector. The main issues lie in the lack of access to arable land and the difficulty local producers have in competing with MNCs. West African governments can implement subsidies for farmland purchases specifically for smaller farmers and West African nationals. Further, a guaranteed purchase program for fresh produce could help further motivate local production. These solutions tackle issues on the supply side, the barrier to entering the farming industry, and the incentive issues behind agricultural production. Regarding demand, a tariff on international companies can place MNC’s on an even standing with local West African farmers, allowing local goods to compete fairly in the marketplace. These potential solutions involve re-emphasizing agricultural development to reduce rural poverty and stimulate local demand for products and labor. It is important to note that implementation of these policies would require significant political capital which is difficult because of the adverse incentives offered to politicians to continue running the wheels of urbanization. And, while urbanization may be the easier path, focusing on agriculture provides a more sustainable foundation for the region's development and is instrumental for West Africa’s future. It aims to shift the emphasis from relying solely on external agents to encouraging smart and well-paced development that functions within the existing economic structure.

The views expressed in this publication are the author’s own and do not necessarily reflect the position of The Rice Journal of Public Policy, its staff, or its Editorial Board.

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