We develop a continuum theory for proliferating active matter starting from a microscopic stochastic model of self-propelled particles undergoing birth, death, and nonlocal competition. Beginning from the master equation, we derive mean-field evolution equations for the particle density and polarization fields and close the resulting hierarchy through a von Mises ansatz, providing a coupled hydrodynamic description applicable to a broad class of proliferating active systems. As an application, we study the recently introduced Active Brownian Bug model, in which the form of flocking emerges despite the absence of explicit alignment interactions. Linear stability analysis predicts both Turing and Hopf instabilities, whose analytical thresholds agree with numerical simulations. The continuum model reproduces the principal dynamical regimes of the underlying particle system, including homogeneous states, stationary periodic clusters, and coherently propagating flocking states. These results establish a general continuum framework for proliferating active matter and provide a physical interpretation of collective motion driven by the interplay between activity and population dynamics.