Lagos listed in top 10 African cities

Lagos has been ranked among the top Ten African Cities, according to a recent PwC report, which detailed the potential of 20 African cities considered to be among the most dynamic and focused on the future.

This is based on certain variables and key indicators including infrastructure, human capital, economics, society and demographics.

The report also showed that the ranking of cities in Africa benchmarked against the ranking of countries is markedly different. Indeed, the attractiveness of cities on the continent is sometimes stronger than the country itself and the cities which are performing well are those that have succeeded with the challenge of diversifying their economy and creating an ecosystem conducive for the middle class to grow.

The report entitled, Into Africa: The continent’s cities of opportunities, is part of PwC’s Global Cities of Opportunity series that helps governments, businesses and citizens improve their economies and quality of life.

According to the report, Africa is at an exceptional historical crossroad. The growing middle class, strong demographic growth with improving age mix, the technological innovation, growing choice of investment partners from the global south and fast-paced urbanisation are shaping what the future of Africa could look like. These trends twinned with the generally accepted economic data that cities are the world’s engines of growth, makes the report not only necessary but extremely timely.

Speaking on the report, Uyi Akpata, CEO of PwC Nigeria, stated: “In 2030 half of the population will live in cities in Africa where economic activity and growth will be focused and which will become communication centers and hubs for social trends. This presents a major challenge to local authorities, city governments and also for businesses.”

The top five cities, according to the ranking, are Cairo, Tunis, Johannesburg, Casablanca and Algiers. The preponderance of North African cities is explained by their longevity which has allowed for the development of their infrastructure and human capital over time.

Commenting further, Akpata noted that: “Lagos ranked 7th in the overall rankings and was identified as a regional hub for culture especially for music and also as the destination for African cinema (Nollywood). It was also listed as one of the top 5 cities that are conspicuous sites for investment at the moment along with Dar es Salaam, Lusaka, Nairobi, and Accra. Lagos equally tied with Accra in 5th place in terms of economic index which measured such variables as GDP per capita, rate of real GDP growth, headquarters of top 500 companies in Africa and ease of doing business but the infrastructure challenges which for example hinders easy movement and increases journey time in the city was identified as one of its weak points.

Infrastructure and human capital take time to develop but are often critical to success. Cities like Lagos which are upcoming fast developing opportunity cities face significant human capital and infrastructure challenges which limit their economics. The role of the public sector policy makers (and related development of institutions) in guiding a city is important to the private sector. The building blocks are infrastructure, human capital and also security. Where these are in place, culture and society starts to flourish.”