Sub-Saharan Africa’s rapidly growing cities risk failing to deliver their economic potential as infrastructure deficits, poor urban planning and governance challenges continue to undermine job creation, according to a new World Bank report.

The report warns that without urgent government action to address these bottlenecks, the region could miss out on the economic gains associated with rapid urbanisation.

The region's urban population is projected to reach 1.7 billion by 2050, adding another 748 million people to towns and cities over the next 25 years.

The prospect places growing pressure on governments to turn population expansion into productive economic activity.

World Bank says the scale of urbanisation presents a major opportunity to create employment for the region's expanding young population, but warns that without decisive policy interventions, growing cities could struggle to deliver the jobs and productivity gains associated with urban development.

Between 1950 and 2025, Sub-Saharan Africa's urban population increased by 742 million people.

Yet, despite the rapid expansion, average gross domestic product per capita has remained largely stagnant at about $4,400.

The report estimates that the region needs to generate approximately 15 million new jobs annually just to keep pace with its growing workforce.

"The region is at risk of missing out on these gains without decisive action by its national and local policymakers," the lender said.

It identifies three distinct challenges affecting cities, their expanding peripheries and smaller towns.

In major cities, inadequate transport infrastructure and restrictive land regulations have limited the development of accessible, employment-rich economic clusters.

The World Bank recommends investing in integrated infrastructure, particularly mass public transport, while reforming building regulations to encourage affordable housing and higher-density developments near employment centres.

For rapidly expanding urban peripheries, the challenge is largely unplanned growth, which has produced fragmented settlements, increased infrastructure costs and weakened economic productivity.

The lender proposes developing arterial road networks ahead of expansion, alongside land reforms that allow private developers and landowners to coordinate subdivision and infrastructure provision.

Public-private partnerships could also support the development of special economic zones within these areas.

Smaller towns, meanwhile, remain overlooked despite their potential to become economic centres, particularly those located along established and emerging transport corridors.

The World Bank recommends targeted infrastructure investment in high-potential towns, alongside reclassification from rural to urban status to unlock appropriate governance and financing mechanisms.

Beyond infrastructure, the report calls for stronger urban governance, including expanded property tax coverage, land-based financing, digitised revenue collection and more predictable intergovernmental transfers.