Africa and the Politics of Foreign Aid

Foreign Aid

Photo Illustration by Ezinne Osueke / THE REPUBLIC. Source Ref: USAID U.S. Agency for International Development / FLICKR.

THE MINISTRY OF WORLD AFFAIRS

Africa and the Politics of Foreign Aid

President Donald Trump’s major changes to the United States’ foreign aid programmes have put Africa in a position where the continent has to question its place in a multipolar world order and strive for its own growth.
Foreign Aid

Photo Illustration by Ezinne Osueke / THE REPUBLIC. Source Ref: USAID U.S. Agency for International Development / FLICKR.

THE MINISTRY OF WORLD AFFAIRS

Africa and the Politics of Foreign Aid

President Donald Trump’s major changes to the United States’ foreign aid programmes have put Africa in a position where the continent has to question its place in a multipolar world order and strive for its own growth.

On 20 January 2025, President Donald Trump of the United States announced major changes to the country’s foreign aid programmes after signing an executive order. The US president and his secretary of state, Marco Rubio, stated that US foreign aid should do more in securing America’s interests than just being ‘humanitarian’. The announcement came with seismic responses from all over the world, with relatively louder outcry coming from Africa. While aid has historically been a tool for global policy influence, such a stance has always been subtle, with the discussion on foreign aid being more about the desire to eliminate extreme poverty and bridge the global inequality gap.

The US leadership’s new approach to foreign aid signifies a kick at the hornet’s nest on the politics of aid to Africa and the future of the continent’s development in the era of growing nationalism in the global North. It is important to note that the concept of international aid is broad and complex and includes elements of development assistance, military aid and humanitarian aid, among other classifications. Development assistance is mostly extended through international financial and development institutions or on bilateral terms in the form of loans or grants for large-scale national development projects. Military aid, which is self-explanatory, refers to aid given for the strengthening of a recipient’s offensive and/or defensive capabilities, mostly in line with the interests of the donor state.

A HISTORY OF INTERNATIONAL FOREIGN AID

The history of international humanitarian aid is rooted in the confluence of global moral cultures and religious beliefs. Both the Abrahamic and localized faiths across the world hold high the notion of assisting fellow humans in distress. In Islam, the concept of zakat is among the five pillars to be upheld in the religion. In Christianity, giving to the needy is also a revered tradition, while Judaism has a core value termed ‘tzedakah’, which is an act of generosity, righteousness and justice. Tzedakah is a broad concept which also includes assisting those in need. In southern African tradition, there is a famous saying which can be metaphorically translated as, ‘helping a needy person does not empty one’s silo’ (Shona vernacular: Mweni haapedze dura).

However, aid has always carried a self-interest tag. Writing in The Gift: The Form and Reason for Exchange in Archaic Societies, French sociologist Marcel Mauss notes that ‘exchanges and contracts take place in the form of presents; in theory these are voluntary, in reality they are given and reciprocated obligatorily.’ Hence, while aid may be discussed as a humanitarian gesture, it has always carried underlying selfish interests on the side of the giver. War has been a major catalyst for the growth of contemporary international humanitarian action. The establishment of the Red Cross Movement in 1863 was influenced by the account of Henri Dunant after the horrific scenes of the aftermath of the 1859 battle of Solferino in Italy. The Red Cross’s establishment was followed by the founding of the Red Crescent in Turkey in 1868. Several other humanitarian organizations were also created in the aftermath of the First World War to help deal with the horrors of the war, which included post-war humanitarian challenges like diseases, destitution and hunger among the civilian populations.

The historical development of foreign aid is also related to the success of the Marshall Plan in rebuilding western Europe’s infrastructure and economies after the Second World War. The Marshall Plan was instituted by the US, under the auspices of its proposer, Secretary of State George Marshall, in 1948 to strengthen European economies against the encroachment of communism from the East and give capitalist US a competitive edge and trading partner. Coupled with the Marshall Plan was former US president, Harry Truman’s ‘Point Four Programme’, which aimed at ‘creating markets for the US by reducing poverty and increasing production in developing countries,’ in the 1950s. There was also the influence of the philosophy of soft power, which was propagated by former senator and later president, John F. Kennedy, to gain public trust for the US in south-east Asia. The plan by President Kennedy led to the creation of USAID in 1961 through the Foreign Assistance Act.

In Africa, the history of aid is linked to the decolonization of the continent and the establishment of independent African states. The decolonization process took place during the bipolar era when the US and Western Europe were striving to contain the Soviet Union-propagated communism within the eastern European bloc. Humanitarian aid, therefore, became a containment foreign policy tool of the West to maintain control of former colony states and as a bulwark against the influence of communism. Aid to Africa can be classified into two broad categories, namely, development and humanitarian aid. The two are related and, in most cases, implemented simultaneously. However, it should be noted that development aid can exist without humanitarian aid. Development aid, on one hand, refers to long-term assistance given by developed countries to developing ones to address systematic issues. Humanitarian aid, on the other hand, is short-term humanitarian assistance given in the aftermath of man-made or natural catastrophes like earthquakes and tsunamis.

Development aid, which can come in financial or technical forms, can be seen as broad assistance coming from governments and/or their agencies like USAID, UK Aid and China International Development Cooperation Agency, as well as international organizations like the United Nations (UN) and its specialized agencies, non-governmental organizations (NGOs) and individuals. Development aid is usually offered in response to ongoing structural challenges, which are usually political, socioeconomic or environmental in nature, including systemic poverty, hunger, disease, natural or man-made disasters and destruction arising from wars.

However, development aid influences power relations, and as earlier noted, comes with interests; it is therefore no coincidence that the bulk of French aid to Africa flows to Francophone countries, while British aid flows primarily to Anglophone countries. Foreign aid developed out of the desire of powerful countries to further their interests using soft power, especially in economically disadvantaged countries. The West’s aid regime in Africa is, at worst, meant to create a dependency syndrome and is a feel-good response to the ‘white man’s burden’ and, at best, a tool to secure business and political interests in Africa using aid as bait.

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AID WITHDRAWAL AND AFRICA

Rubio’s explicit statement that aid from the US will only be supported by the White House if it brings more returns to the US rekindles the question: Who benefits from aid? Scholars such as Rasna Warah, Dambisa Moyo and Wolfgang Sachs have pointed out that aid has not brought development to Africa, but conversely, has entrenched poverty and neo-colonialism. Development aid has been credited with having saved Africa from the scourge of excruciating poverty and large-scale diseases such as malaria and HIV/AIDS, which many governments on the continent had no financial capability to curb. Both African governments and citizens have celebrated the presence of Western and Western-sponsored NGOs in their countries. Development aid constitutes a sizeable portion of foreign currency flows to Africa. Some countries, like Malawi and Rwanda, have had nearly half of their budgets funded by aid, and this speaks more to overreliance and dependency rather than simply getting aid.

Nevertheless, there is no doubt that aid, mostly on the humanitarian front—especially in the aftermath of natural disasters or health pandemics—has brought some relief to the social constraints in Africa. The 2014–2016 West Africa Ebola virus disease outbreak in Guinea, Liberia and Sierra Leone is a pertinent example. However, while aid has been extended to various African countries, no meaningful socio-economic transformations have been observed at the levels catalysed by the Marshall Plan in Europe or the accelerated development in East Asia. Aid in Africa has been, at best, a relief measure. It carries no sustainability and, if sustained, kills development by creating dependency syndrome. In my 2016 essay co-authored with Lucky E. Asuelime, we argued that African leaders are so drunk on love for aid that they have now moved to climate change negotiations as another platform to extort aid from the West.

There is a need to shift from aid to other relations that are better dictated by Africans and their needs. However, the argument that aid has destroyed Africa emanates from the fact that aid is a tool for the continued syphoning of African resources worth more than what has been given in aid. Tafataona Mahoso, a Zimbabwean critic of Western aid to Africa, likened this relationship to ‘chema yemuroyi’ (which translates to: witch/wizard’s bereavement contribution token), after having bewitched your children to death. Africa’s lag in development is not solely its own making but a result of complex global relations deliberately engineered to impoverish the continent for the benefit of the global North. Development aid becomes not only an albatross around the neck of African leaders but also a pacifying mechanism for both African leaders and populations.

Reduction of aid would drive Africans to claim their fair share of global trade and also ask the best of their leaders in driving true development. African leaders who rely on aid to cover for their leadership shortfalls, including corruption and theft, would be exposed, leading to either transformations in policies or deposition by their citizens. Moyo argues that aid fuels corrupt and autocratic regimes that respond to the desires of the aid source countries more than the developmental needs of their citizens. The irony is that aid funds are used mostly to finance the lavish lifestyles of the corrupt political class and placate other influential sectors of the society, like the security chiefs.

One of the killing elements in official development assistance (ODA) is the various conditionalities that come with the aid. These conditions sometimes include the signing away of commercial and resource rights to the aid source countries. Examples are the structural adjustment policies of the 1980s and 1990s, which saw African countries being forced to adopt socio-economic policies that destroyed the socialist basis of these countries, leading to the return of global capital to take over the countries. Another recent example is the Build Back Better World initiative by the 2021 Group of 7 (G7) to offer infrastructure aid to Africa with the condition of moving out of China’s Belt and Road Initiative (BRI). The worst are bilateral conditionalities where countries are forced to offer exclusive rights of minerals or markets to access aid; while such information is not publicly available, such cases cannot be dismissed at face value. This is also coupled with external factors deliberately meant to keep Africa poor and perpetuate the aid industry and western dominance.

For instance, Western countries agreed not to fund any energy generation production that uses fossils, on the pretext of climate change, during the 2021 Glasgow Conference of the Parties (COP26). Countries part of the agreement included the US, UK, Canada and Switzerland. However, in the aftermath of the European Union (EU) trade breaks with Russia, due to the Ukraine War, these countries, including the Netherlands, France, Germany and Spain, have been sourcing the same fossils for their electricity generation, including from Africa. This means that Africa, which has vast reserves of coal and gas, may spend future years without a universal electricity supply due to the desire not to upset the donor countries. However, the continent would retain its resource sovereignty, which is currently lost to various western corporations, with a break from this system.

African leaders can also begin to make use of indigenous intellectuals and experts for internal development, against the so-called experts who are brought in as part of aid packages. This would mean a retention of development-planning sovereignty. For instance, during the 2012 constitution-making process in Zimbabwe, the United Nations Development Programme, which funded the process, seconded to the Constitution Parliamentary Select Committee a South African constitutional lawyer, Hassen Ebrahim, despite Zimbabwe having many constitutional law professors.

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ENDURING COLONIAL RELATIONS

The post-colonial relations between African countries and the West have ensured that Africa remains poor. Ironically, one of such policies that perpetuates this is the aid system. Both the British and the French created post-colonial systems that meant former colonies remained economic colonies. The British Lancaster House was popular for the production of independence agreements that maintained colonial socio-economic status quos. Among the countries whose independence negotiations were conducted at the famous building are Nigeria, Kenya and Zimbabwe. The most (un)popular clause in the agreements and subsequent constitutions was the protection of private property as established on independence. This meant that the most fertile land, mining and manufacturing remained in the capitalist hands of the former colonialists, with Black people relegated mostly to the services industry. The dominant white-owned companies remained domiciled in the West, and repatriation of profits meant that the surplus accumulated, as had during colonial times, continued to go to western capitals. The French established the Francafrique, where former colonies’ economies remained under tight control from Paris, while the French had more of a carte blanche on troop deployment and resource control.

Any attempts to change such policies were followed by threats of disinvestment and aid loss. Western-owned and dominated companies also ensured that the processing of vital resources would continue to be done in the West. Examples abound where gold, tin, cobalt and coltan, among other minerals, from the Democratic Republic of Congo are either exported or smuggled to the US and Europe for high-tech industries. DRC is among the five poorest countries in the world, according to the World Bank in 2024, while ranking among the top 20 aid recipient countries in Africa. Niger struggles with electricity production, the country is only 21 per cent electrified with more than 70 per cent of the supply coming from Nigeria, while its uranium produces electricity for France and other EU countries that enjoy 100 per cent electricity. Zimbabwe’s quest for the processing of platinum, of which the country is the third largest producer in the world, has continued to be resisted by Western-dominated mining companies, who also have major influence in the global value chain. These relations speak of a continent subjected to perpetual extraction and placated by aid.

Attempts by African leaders in 1980 to transform and disentangle Africa from its colonial ties through the Lagos Plan of Action (LPA) were quickly countered by the World Bank’s commissioned report, ‘Accelerated Development in Sub-Saharan Africa: A Plan for Action’, popularly called ‘The Berg Commission’. The report buttressed the World Bank/International Monetary Fund (IMF)’s Structural Adjustment Programmes (SAPs), which impoverished African countries and created the grounds for the need for more aid. The Berg Commission explicitly called for the use of various liberalization conditionalities for the disbursement of aid. It also called for an increase in aid to countries that followed the prescriptions. The LPA, on the other hand, recommended sufficient food production, socio-economic growth hinged on the decreased export of raw materials, increased industrialization and a continent-wide integration process by the year 2000. The vision of the LPA can be achieved if there is decreased aid from the West, with acceptable aid being humanitarian aid.

To understand that the current socio-political system established takes away more from Africa than what is given, there is need for statistical comparison. The United Nations Conference on Trade and Development (UNCTAD)’s Economic Development in Africa Report for 2020 stated that Africa was losing more than $88 billion yearly in illicit financial outflows. This, according to UNCTAD, was nearly double the ODA inflows to the continent, which stood at about $48 billion. These illicit financial outflows were mostly driven by the export of extractive commodities, minerals and precious stones mostly processed in the West. Researchers, Mark Curtis and Tim Jones, inform us that in 2015, the total financial inflows to Africa amounted to $162 billion, against an outflow of $203 billion, giving the continent a total loss of $41 billion. The study also showed that Africa was short-changed in all their indices, with the continent being a net funder of the development of the West. While Africa received aid amounting to $19 billion, it lost $68 billion from multinational companies’ externalization. Curtis and Jones also noted the other silent costs imposed on the continent due to climate change adaptation and mitigation costs.

A 2015 study by the British NGO, Oxfam GB, also showed that Africa is a net funder of the West than is depicted in official global financial reports. Oxfam states that, ‘In 2010…multinational companies avoided paying tax on US$40 billion of income through a practice called trade mispricing…With corporate tax rates averaging out at 28 per cent in Africa, this equates to US$11 billion in lost tax revenues.’ In most cases, African countries are directed to give ‘favourable investment terms’ to Western companies to get more aid. These terms include suspension of taxes, and allowances of hefty externalizations of profits, whose loss is said to be offset by aid, and which, however, is only a meagre amount of the losses accrued from the loss of revenue in the terms.

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SANCTIONS AND WARS

While the global North boasts of various aid sent to Africa, the true cost of African underdevelopment is from economic sanctions and wars that the continent is condemned to by the global North, mostly driven by socioeconomic interests. Solomon Ekanem notes that, ‘African countries have been at the receiving end of combined sanctions from the United Nations (UN), the European Union (EU) and the US than any other continent and these sanctions have been used to advance a range of [mostly western countries’] foreign policy goals.’ Among the African countries that have been subjected to either US or EU sanctions since the post-2000 era are Congo (DRC), Niger, Mali, Sudan and Zimbabwe. While the sanctions may come with various names that may include the term ‘targeted sanctions’, the broader impact is felt in the economy, with the hardest hit being the ordinary citizen.

In most cases, the sanctioning countries use media propaganda to argue that their sanctions are well-meant to restore and uphold democracy in the sanctioned countries, and, to cover up, for the ‘unintended’ negative impacts on civilians, aid would have to be upscaled. For instance, the US ambassador to Zimbabwe (2018–2021), Brian A. Nichols, argued that while his country had slammed the southern African country with sanctions, their bilateral aid portfolio amounted to $3.2 billion since 1982, with $300 million having been injected in 2019 alone. On the flipside, research by the United Nations Special Rapporteur established that since the 2001 promulgation of sanctions, up to 2022, Zimbabwe has lost more than $1 billion. Had Zimbabwe traded freely during this period, it would not have needed aid. This situation is not unique to Zimbabwe, but also to some African countries like Niger and Mali, who were sanctioned for deposing western-allied leaders.

The sanctions regimes and the resurgence of the eastern polar in global relations gives African leaders wider options to move out of the crippling carrot-and-stick western aid policies. Beginning with the policy to diversify relations through the South-to-South cooperation, African leaders can now look to balance between the courtships coming from the rising global economies for economic development and better trade deals. Prior to 2000, the popular regional multilateral engagements outside of the UN were the French with their former colonies, Britain and its former colonies under the Commonwealth and the US. However, since 2000, the continent now enjoys multilateral engagements with Brazil, China, India, Iran and Russia.

What is now needed is a differentiated engagement strategy where, in such continental engagement, countries should first hold continental meetings to approach other global powers with synchronized interests to bar the possibilities of being played against each other. Part of the success of the aid regime is that African countries are told that if they do not accept the terms, several other leaders are willing to take the aid with even worse terms. The situation faced by African leaders in such closed-door deliberations was exposed in how the US administration confronted the Ukrainian president, Volodymyr Zelensky, on 28 February 2025 in the White House, pushing him to accept a ceasefire roadmap on US terms without consideration of the Ukrainian side. African leaders may also be faced with such forceful language in various forums, so that they trade their resources for aid, as was the case with Ukraine.

Coupled with sanctions is the concept of conflict in resources’ extraction. Under this concept, big powers instigate and sponsor wars in target countries to extract resources outside the subject government’s control. No country has faced this reality more than the DRC, which has never known peace since its independence in 1960. Other countries that have also faced this ‘curse’ are Sierra Leone and Libya. These countries have been subjected to what is also termed a ‘war economy’, which refers to the ‘predation of natural resources and illicit trafficking’ for corporate and individual gain. A 2002 UN Panel of Experts report listed several Western companies linked to conflict resource extraction in the DRC. The global North has, in some instances, exported war to Africa for selfish interests. Such wars have resulted in underdevelopment and humanitarian situations, which have seen them lamenting the need to bring aid to Africa. In part, the instabilities in the DRC and Somalia are due to Western geopolitical interests. Such countries need no aid but peace for socio-economic development. In the case of Somalia, this theory is given life by the experience of the hardly recognized Somaliland, which has enjoyed relative development due to a relative peace.

Aid, mostly ODA, has played its part in some development endeavours in Africa. However, development cannot be an external prescriptive issue. This has been the misconception brought about by Western countries. While the US seeks to make aid pay more to the US, this new stance might be a jolt to African leaders to wake up from the decades-long aid slumber. The global transformation from a unipolar to a multipolar world gives Africa opportunities for re-alignment and engagement in alliances that bring development and see the continent out of the aid-recipient stupor it has been in since the end of political colonialism

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