Saturday, 15th March 2025
By an African Economist
For decades, African nations have been recipients of foreign aid, a dynamic often criticized for fostering dependency rather than development. As some major donors reconsider aid (the US recently signaled cuts to USAID programs), African leaders face a pivotal question: Could less aid actually spur self-reliance? Economist Célestin Monga provocatively suggests that a freeze on American aid might even benefit African countries by forcing fiscal discipline and innovation
Indeed, countries like Rwanda and Ethiopia have leveraged aid effectively but also charted independent paths through domestic resource mobilization and homegrown initiatives. On the other hand, many poorer African states still rely on aid to fund basic healthcare or infrastructure – a sudden cut could harm vulnerable populations.
The real issue is how aid is used. “Trade not aid” has been a mantra; now continental initiatives like AfCFTA and an emphasis on attracting investment signal a shift to growth through commerce. African governments must strengthen institutions to collect taxes (currently among the lowest tax-to-GDP ratios globally) and curb illicit financial flows which far exceed aid outflows. Reducing dependency is also about mindset: as one interviewee said, “Whining about aid is not a development strategy”.
Ultimately, foreign aid should be a temporary catalyst, not a perpetual crutch. Africa’s future prosperity will hinge on leveraging its own wealth — from human capital to natural resources — within a fair global economic system. Donors can best help by supporting this transition to genuine economic sovereignty rather than fostering indefinite aid cycles.
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