Africa must harness urbanization for economic growth | PM

Madbouly made the remarks during a plenary session on cities and urban development at the inaugural Alamein–Africa Business Forum in New Alamein City, attended by President Abdel Fattah El-Sisi.

By: Business Today Staff

Sun, Oct. 4, 2026

Egyptian Prime Minister Mostafa Madbouly said Africa’s rapid urbanization presents a historic opportunity to reshape the continent’s economies and transform its cities into engines of growth, productivity, industrialization, and job creation, noting that Africa’s urban population is expected to double by 2050.

 

Madbouly made the remarks during a plenary session on cities and urban development at the inaugural Alamein Africa Forum in New Alamein City, attended by President Abdel Fattah El-Sisi.

 

The prime minister said addressing Africa’s urban growth should go beyond providing housing, services, and infrastructure. Instead, this growth should be harnessed as a driving force for comprehensive development and the structural transformation of African economies.

 

He said cities should be viewed as integrated economic, social, and environmental systems encompassing transportation, energy, housing, industry, services, water, telecommunications, and green spaces. He stressed the need to shift toward integrated urban planning that places people, the economy, and the environment at the heart of development.

 

Madbouly noted that the pace of urbanization across Africa requires proactive measures to prevent unplanned urban expansion, which can increase pressure on infrastructure, the environment, and natural resources.

 

He stressed that sustainability is not a constraint on development but a prerequisite for its continuity, adding that cities must strengthen their resilience to climate change, heatwaves, floods, water scarcity, and pressures on energy systems.

 

Madbouly also highlighted the importance of digital transformation in city management as a means of improving resource efficiency, managing traffic, energy, and water systems, enhancing government services, and providing the data needed for informed decision-making.

 

The prime minister reviewed Egypt’s experience in urban planning and the expansion of new urban communities, aimed at accommodating population growth, easing pressure on existing cities, and achieving a more balanced distribution of population and economic activity.

 

He said the concept of “fourth-generation cities” is a key part of Egypt’s approach, with the government seeking to develop integrated cities capable of hosting economic, service, industrial, and tourism activities while connecting them to modern transportation, energy, utilities, and telecommunications networks.

 

Madbouly cited several major projects, including the New Administrative Capital, New Alamein City, and New Mansoura City, as examples of integrating urban planning with infrastructure, economic development, sustainability, and digital transformation.

 

He said Egypt’s urban development expertise extends beyond domestic projects, with Egyptian companies carrying out major infrastructure and service projects across several African countries.

 

Madbouly highlighted Tanzania’s Julius Nyerere Hydropower Project, implemented by an Egyptian consortium comprising Arab Contractors and Elsewedy Electric, as well as road and bridge projects carried out by Egyptian companies in Uganda and infrastructure and road projects in Ghana.

 

He said these projects demonstrate Egypt’s implementation capabilities, which can be leveraged in cooperation with African countries to design and execute infrastructure and new-city projects tailored to each country’s needs.

 

Egypt is also ready to expand cooperation to include the transfer of expertise in urban planning, city design, utilities and infrastructure management, urban governance, and national capacity building, Madbouly said.

 

The prime minister identified financing as one of the key challenges facing urban development in Africa, noting that funding gaps in infrastructure, housing, and urban services require innovative partnership models involving governments, the private sector, development finance institutions, and long-term investors.

 

He called for more long-term capital, including investment funds and institutional investors, to be directed toward sustainable housing and urban infrastructure projects, alongside regulatory frameworks that reduce risks and improve projects’ ability to attract investment.

 

Madbouly also stressed the importance of developing financing mechanisms for affordable housing to ensure that urban growth does not widen social inequalities or contribute to the expansion of informal settlements.

 

Reviewing Egypt’s housing efforts, he said the government is expanding housing projects across different segments, improving drinking water and sanitation services, and developing new urban communities. Egypt plans to launch 310,000 new housing units under its FY2025/2026 plan, including 285,000 social housing units.

 

Madbouly called for urban development to become a key component of Africa’s cooperation agenda, noting that the Africa Urban Forum provides a platform for dialogue and knowledge-sharing on the future of African cities and the challenges and opportunities associated with urbanization.

 

He said continental cooperation could move beyond exchanging expertise toward implementing joint partnerships and projects in urban planning, affordable housing, smart cities, water management, urban transportation, clean energy, and urban financing.

 

The prime minister also stressed the importance of strengthening bilateral cooperation among African countries alongside multilateral cooperation with the African Union, financial and development institutions, and international partners.

 

Madbouly concluded by reaffirming Egypt’s readiness to continue sharing its expertise with African countries and working with development and financial institutions and the private sector to build more resilient, competitive, and inclusive cities, while transforming African cities into engines of growth and economic integration.