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Evaluating the impacts of foreign aid on low-income countries in Sub-Saharan Africa

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  • Maonei Mangwanya

    (Post-Doctoral Research Fellow, School of Public Management, Governance and Public Policy, College of Business and Economics, University of Johannesburg, South Africa)

Abstract

Foreign aid comprises of a provision of financial resources or commodities such as food parcels or technical advice and training. The most prevalent type of foreign aid, particularly in developing countries, is Official Development Assistance (ODA) that strives to promote development and combat poverty. In Sub-Saharan Africa, there is a significant dependency on foreign aid which prompts the question; Is foreign aid completely necessary in developing African countries? With a high reliance on foreign aid the focus tends to shift from developing into self-sufficient economies and combating poverty to being dependent states. The paper explores the impact of foreign aid on the development in Sub-Saharan Africa. Because low-income countries are significantly reliant on aid, the study took a qualitative approach using the case study method featuring case studies from Kenya, Togo, and Zimbabwe. From the literature of the study, it is evident that the three countries had become dependent on foreign Aid. Conclusions drawn from the study show that foreign has become a recipe for dependency syndrome. Based on the findings from the literature, there is a need for private investments. Key Words:Official development assistance, low income countries, foreign aid, dependency syndrome

Suggested Citation

  • Maonei Mangwanya, 2022. "Evaluating the impacts of foreign aid on low-income countries in Sub-Saharan Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 370-377, September.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:6:p:370-377
    DOI: 10.20525/ijrbs.v11i6.1925
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    References listed on IDEAS

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    1. Daron Acemoglu & James Robinson, 2010. "The Role of Institutions in Growth and Development," Review of Economics and Institutions, Università di Perugia, vol. 1(2).
    2. Adeniyi Jimmy Adedokun, 2017. "Foreign Aid, Governance and Economic Growth in Sub-Saharan Africa: Does One Cap Fit All?," African Development Review, African Development Bank, vol. 29(2), pages 184-196, June.
    3. Simplice A. Asongu, 2015. "Institutional benchmarking of foreign aid effectiveness in Africa," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(6), pages 543-565, June.
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