Foreign aid to Africa after the global financial crisis: A consideration in retrospect

Main Article Content

Lasbrey Anochiwa
SAMA, Roseline


Several projections were made during and after the Global financial crises of 2007-2009 about the continuity of foreign aid to Africa.Some opined that the financial crises will reach Sub Saharan Africa via the decline of foreign aid as well as other financial transfers such as remittances and Foreign Direct Investment. It is on this premise that this study examined the flow of foreign aid to Africa in an effort to appreciate the trend before, during and after the Global financial crisis. The study used trend charts and the Bai-Perron multiple structural break test as well as the Chow test to analyse data sourced from the World Bank Indicators. The results show that, though Overall ODA dropped in 2007, it consistently increased up to 2013 by 25%. The structural break test shows that the trend of ODA has not significantly changed as a result of the Global financial crisis for; low, lower middle, higher middle and Sub Saharan countries as a whole. The result further shows that ODA to low income countries were higher than those of lower middle income countries which was equally higher than higher middle income countries. ODA to the agricultural, educational and economic infrastructural sector all increased after 2009. It is only ODA to the health sector that dropped significantly. The study concludes that Foreign aid to Africa has not declined, but rather improved in most cases. It therefore commends the efforts of aid donors and emphasizes the complementing role of foreign aid to Africa.

Article Details

How to Cite
Anochiwa, L., & Sama, R. (2021). Foreign aid to Africa after the global financial crisis: A consideration in retrospect . Journal of Public Value and Administrative Insight, 4(2), 57–68.


Chenery, H. B. and Strout, A. M. (1966), Foreign Assistance and Economic Development, American Economic Review, vol. 56(4).

Chenery, H.B., Carter, N.G. (1973). Foreign Assistance and Development Performance, 1960-1970. American Economic Association, 63(2), 459-468

Dang, H., Knack, S and Rogers, H. (2010). International Aid and Financial Crisis in Donor Countries. Policy Research Working Papers 5162, World Bank, Washington DC

Das, D. K. and Dutta, C. B. (2012). Global Financial Crisis and Foreign Development Asistance Shocks in Least Developing Countries. MPRA Paper No. 40281

Dudley, L. M. and Montmarquette, C (1976). A Model of the Supply of Bilateral Foreign Aid. American Economic Review, March 1976, 66(1), pp. 132-42.

Durbarry S., Gemmel, N. and Greenaway, D. (1998). New Evidence on the Impact of Foreign Aid on Economic Growth. CREDIT Research Paper 98/8

Fatima, F. (2014) Foreign Aid and Economic Growth. Open Access Library Journal, 1: e632.

Knack, S. (2000). Aid Dependence and the Quality of overnice: A Cross-Country Empirical Analysis. World Bank Policy Research Paper

Kolawole, B. O. (2013). Foreign Assistance and Economic Growth in Nigeria: The Two-Gap Model Framework. American International Journal of Contemporary Research 3(10); October 2013.

Lohani, S, "Effect of Foreign Aid on Development: Does More Money Bring More Development?" (2004). Honors Projects. Paper 18.

Mbah, S. and Amassoma, D. (2014). The Linkage between Foreign Aid and Economic Growth in Nigeria. International Journal of Economic Practices and Theories, 4(6), 2014, e-ISSN 2247–7225.

Minoiu, C and Reddy, S.G (2009). Development Aid and Economic Growth: A Positive Long Run Relation. IMF Working Paper/09/118

Moreira, S.B (2005). Evaluating the Impact of Foreign Aid on Economic Growth: A Cross Country Study. Journal of economic Development 30(2), 25-48

Morrissey, O. (2001). "Does aid increase growth?," Progress in Development Studies, 1(1), p.37-50.

Pohwani, P., Khoso, J. R., & Ahmed, W. (2019). Impact of Foreign Aid on Economic Growth of Pakistan. Journal of Public Value and Administrative Insight, 2(1), 18-25

Roodman, D. (2008). Through the Looking Glass, and what OLS Found There: On Growth, Foreign Aid, and Reverse causality’ Working paper n 137, Washington D.C: Center for Global Development.

Sindzingre, A. N. (2015). Aid and Economic Development.Assessed 26th October, 2016. Available