The rate of urbanization is far more rapid in sub-Saharan Africa than in any other major region of the world. However, little is known about patterns of ethnic residential segregation in rapidly urbanizing African cities. This paper is crafted to make an important contribution through its focus on Ghana’s two largest cities: Accra and Kumasi. Making use of the most recent population and housing census data of 2000 to generate a Location Quotient index, the analyses explore the cities’ degree of ethnic diversity and concentration for comparative purposes. In relative terms, the study reveals that the level of residential ethnic segregation is fairly balanced in Accra compared to Kumasi. However, there are important differences between the findings of this Ghanaian case study and findings from research in the West, where the residential segregation is heavily determined by cultural/racial factors in addition to socio-economic factors. In the absence of institutional and ethnic discrimination, the most fundamental underlying cause of segregation in the Ghanaian case appears to be the socio-economic circumstance of ethnic groups present in the cities. The paper concludes by exploring the implications of the study for urban and national development in Ghana as well as the future patterns of ethnic clustering likely to emerge in Accra and Kumasi.