This paper deals with the impact of livelihood diversification through multi-activity and multi-locality on small-town development in Cameroon, Ghana, Rwanda and Tanzania. Based on a cross-country analysis of qualitative and quantitative data from ten different research sites, its central argument is that the tendencies of de-agrarianisation, agricultural commercialisation, livelihood diversification and the increased importance of rural–urban connections have accelerated an almost universal process of rural urbanisation. The paper casts innovative light on the discussions surrounding small-town development in Sub-Saharan Africa by showing that livelihood diversification and increased rural–urban linkages are not only crucial features in the urbanisation of the countryside but also of the transformation of small villages into emerging towns. This metamorphosis of livelihoods in rural regions, resulting from agricultural transformation, increased multi-locality and multi-activity, has contributed to the emergence and consolidation of small towns.