Aid Not Matching Africa’s Development Needs

The Institute of Economic Affairs (IEA) says that aid never matched Africa's vast development needs, particularly, relating to building physical and human capital.

IEA senior economist, Dr John Kwakye, says that foreign aid increased the continent's indebtedness, and high servicing costs have diverted resources away from development and social projects, while bureaucracy and volatility in aid delivery have often curtailed or frustrated African development budgets.

Kwakye argues that Africa's long dependence on aid has created moral hazards by breeding complacency and apathy in seeking alternative sources of mobilising development resources and imperatively.

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