This study presents the findings, conclusions, and recommendations of the research project “Towards a Socially Inclusive and Environmentally Sustainable Rural Transformation in Africa.” It aims to describe ongoing trends in rural transformation across Sub-Saharan Africa and their associated social and environmental effects, assess influencing factors, construct feasible future scenarios for smallholder and pastoral systems, and outline strategic directions to achieve these scenarios. Drawing from a literature review, macro data analysis, and country case studies, the research finds that regions characterized by smallholder farming exhibit slow and partial transformation, while those dominated by pastoralism are undergoing strong but socially and environmentally adverse changes. These patterns differ markedly from historical rural transformations in Europe and East Asia’s emerging economies. Current business-as-usual trajectories are seen as worst-case scenarios, lacking both social inclusivity and environmental sustainability. They are shaped by external pressures such as global competition in labour-intensive sectors, unfavourable trade policies, and internal challenges like urban bias, fragmented national strategies, weak agricultural services due to state and market failures, and unsuitable education and skills frameworks. In addition, population dynamics further complicate outcomes: high densities (e.g., Benin) exacerbate environmental degradation, whereas low densities (e.g., Zambia) fail to drive system intensification. The study concludes that achieving a socially inclusive and environmentally sustainable rural transformation demands environmentally sustainable intensification and diversification of agriculture and pastoralism, creation of non-farm employment and skill development, and enhanced rural governance—including policy implementation, access to decentralised financial services, and secure land tenure.