Structural transformation under vertically divided authority in Harare

This paper explores structural transformation in Harare, a city characterized by vertically divided authority. Harare's unique governance structure can offer invaluable insights into the role of political determinants in structural change in African cities. We aim to demonstrate how political dynamics have aided or undermined efforts to enhance long-term growth and structural change in the city's economy. We examine the spatial distribution of economic activity to account for structural transformation patterns and identify the drivers and constraints affecting this process. Additionally, we investigate how power configurations and their interactions with national and metropolitan political settlements and institutions impact the potential for structural transformation and sustainable development. We find an increase in the share of employment in agro-industrial sectors along with a significant decline in the share of manufacturing employment. There is a noticeable dominance of low-productivity informal manufacturing in Harare, where the spatial distribution of economic activities seems to follow historical patterns of industrial zones. The political economy dynamics of governance resulting from the narrowly concentrated political settlement seem to influence economic activities and public infrastructure distribution. In conclusion, we propose policy options to address the identified impediments to structural transformation. By implementing these measures, Harare can overcome the barriers to structural transformation and create a more vibrant, efficient, and inclusive economy.