Priming Urban Development: Digital Innovation in East Africa’s Intermediary Cities

The next global wave of urbanisation is an African story. Of the 50 fastest growing cities 2010-2030, 36 are African, and 31 of those African cities are intermediary cities of under one million people. By 2050, one in four people globally will live in African countries, with 80% of this growth taking place in cities.

While megacities often dominate policy, as of 2020 54% of Africa’s urban residents live in intermediary cities of under one million people. These cities face a more challenging policy environment than their larger counterparts. With a more limited tax base and different forms of governance than large cities, their policy autonomy and fiscal freedom is often limited. Cities can be engines of productivity, but their potential can only be realised when people have the essential services needed to thrive: housing, water, energy, waste management and transport.

This report takes reviews digital innovation in intermediary cities in Kenya, Rwanda and Uganda, evaluating the unique dynamics in each country that both enable and constrain adoption. Three case study cities were selected from each country to ground the findings and provide a range of contexts. The research is based on more than 100 interviews, drawing on insights from national ministries and agencies, municipal authorities, utility service providers, private sector innovators, mobile network operators (MNOs), donors, startup support organisations and academic institutions.