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Foreign assistance fails Africa
(MENAFN) Foreign aid, often touted as a solution to Africa's economic and social problems, has failed to produce significant results, according to Zimbabwean economist Vince Musewe. In an interview with RT, Musewe noted that despite over $2.6 trillion in aid being sent to Africa since 1960, the continent continues to face persistent issues like poverty, unemployment, and poor infrastructure.
Musewe emphasized that Africa loses more money than it receives, estimating that the continent loses around $40 billion annually due to aid-related transactions. He criticized the conditional nature of Western aid, which often forces countries to use foreign contractors and suppliers, turning aid into a "business transaction" rather than genuine support. This, he argued, creates dependency instead of fostering real development.
Musewe pointed to Zimbabwe’s health sector as an example, where the reliance on foreign aid has led to instability. The withdrawal of US aid resulted in job losses and shortages of essential medicines in the country.
To break free from aid dependency, Musewe suggested that African nations focus on improving tax collection, expanding employment opportunities, and strengthening domestic industries. He also called for the fight against corruption, pointing out that much of the development funds never reach the intended recipients, as 80% of each dollar spent on aid often goes to administrative costs.
While acknowledging that achieving financial independence would take time, Musewe emphasized the importance of building internal capacity, improving governance, and increasing accountability within African countries. He believes that Africa must move away from the aid cycle that has historically failed to bring about meaningful change.
In related news, the US Embassy in Zimbabwe recently announced a pause in aid programs, and the US government revealed plans to terminate 90% of contracts under the US Agency for International Development (USAID), citing mismanagement and corruption.
Musewe emphasized that Africa loses more money than it receives, estimating that the continent loses around $40 billion annually due to aid-related transactions. He criticized the conditional nature of Western aid, which often forces countries to use foreign contractors and suppliers, turning aid into a "business transaction" rather than genuine support. This, he argued, creates dependency instead of fostering real development.
Musewe pointed to Zimbabwe’s health sector as an example, where the reliance on foreign aid has led to instability. The withdrawal of US aid resulted in job losses and shortages of essential medicines in the country.
To break free from aid dependency, Musewe suggested that African nations focus on improving tax collection, expanding employment opportunities, and strengthening domestic industries. He also called for the fight against corruption, pointing out that much of the development funds never reach the intended recipients, as 80% of each dollar spent on aid often goes to administrative costs.
While acknowledging that achieving financial independence would take time, Musewe emphasized the importance of building internal capacity, improving governance, and increasing accountability within African countries. He believes that Africa must move away from the aid cycle that has historically failed to bring about meaningful change.
In related news, the US Embassy in Zimbabwe recently announced a pause in aid programs, and the US government revealed plans to terminate 90% of contracts under the US Agency for International Development (USAID), citing mismanagement and corruption.
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