In recent years, foreign aid to Africa has witnessed a significant decline, sparking concerns among policymakers, development experts, and communities that rely on this crucial support. Once the largest recipient of U.S. foreign aid, sub-Saharan Africa is now facing a brutal cut in funding which raises questions about its effects on the region’s development and stability.
A steep drop in foreign aid
The continent has been witnessing a troubling trend since 2022.
- In 2021, Africa received US$64.8 billion in aid from donor countries.
- In 2023, this figure decreased to US$60 billion, including less than US$20 billion from the U.S..
- In 2024, U.S. foreign aid declined further to US$12.7 billion.
See also: U.S. foreign aid freeze threatens critical programs in Africa
As the continent grapples with poverty, disease, climate change, and political instability, the funding shortfall threatens to undermine critical health and development programs..
Why is foreign aid to Africa declining?
Concerns over aid effectiveness
Critics argue that conventional aid models often fail to achieve sustainable development. Studies echo this, suggesting that without proper oversight, aid funds risk being misused or misallocated, thereby lowering their intended impact.
“Donors are increasingly demanding proof that their contributions lead to meaningful advancements in areas like health, education, and economic growth”, explained Dr. Sylvester Kugonza, Dean of the School of Civil Service, Public Administration, and Governance at the Uganda Management Institute (UMI).
Domestic priorities in donor countries
Economic challenges in donor countries are reshaping their aid priorities.
Countries such as the United States with its America First Investment Policy, Germany, France, and the UK have significantly reduced their aid budgets. The United States has cut aid funding by over US$2 billion.
- Germany has slashed more than €4.8 billion ($5.3 billion) from its core development and humanitarian assistance for 2022-2025.
- France has reduced its ODA budget by more than $1 billion.
- The United Kingdom has cut more than $900 million from its funding for 2024-2025.
Shift towards private sector engagement
To avoid high reliance on traditional aid, Africa has been encouraged to attract private sector investment. This approach focuses on economic growth through trade agreements and business partnerships rather than relying on financial aid. Many experts argue that this is a more sustainable means of promoting economic growth compared to foreign aid, establishing independence rather than solely relying on aid.
This transition reflects a broader recognition that private investment can lead to more sustainable development outcomes and that African nations have the capacity to drive their own economic growth with the appropriate support and resources.
Corruption and mismanagement
Concerns over corruption have caused some donor countries reluctant to provide aid. Numerous instances of mismanagement and the misappropriation of funds have damaged trust between donors and recipient governments.
“Donors become hesitant to offer additional support when they feel that aid is not being used effectively or is misappropriated for personal benefit”, commented Robert Kirenga, Executive Director of the National Coalition of Human Rights Defenders Uganda (NCHRD-U).
He went on to explain that “this widespread problem has led donors to implement stricter oversight and accountability measures for aid distribution”.
Emerging geopolitical shifts
The rise of China as a key player in Africa has reshaped global aid dynamics.
“Unlike traditional Western donors, China often conditions its aid on securing trade deals or strategic partnerships, which can alter the priorities and dynamics of aid distribution,” explained Jonathan Tabalanga, an expert in international relations and a political analyst.
Before 2005, China’s share of the total external government debt in sub-Saharan Africa was below 2%. By 2021, this figure had risen to approximately 17% amounting to £106 billion.
“This shift has led to heightened competition among donor countries, each vying for influence and access to African markets,” highlighted Tabalanga.
Focus on global challenges
Finally, the growing emphasis on climate change has redirected aid funds away from development projects in Africa.
Many donor countries prioritize:
- Climate resilience
- Renewable energy initiatives
- Disaster response
While these efforts are essential, they may lead to a decline in funding for education, healthcare, and infrastructure development in Africa.
See also: Africa struggles to rise to the challenge as USAID funding freeze spurs innovation and self-reliance
