Ethnic diversity is a well-known feature of social structures in African countries. However, its economic, political, and social consequences are significant only when Africans claim ethnicity as a key aspect of their identity. Our empirical study reviews factors underlying the importance of ethnicity in the identity structure of individuals in Sub-Saharan Africa. Based on the 1-2-3 surveys undertaken in seven capital cities of WAEMU countries, we show that ethnic identification is not perceived as important when the level of education and social standing is high, but becomes important when professional or social competition increases. This finding sheds new light on the contradictory effects of urbanization and education on ethnic identity, and highlights the importance of the rural-urban dualism in the identity structure of African societies. It also contributes to the debate on the instrumental and evolutionist visions on the links between ethnicity and development.