An African paradox: Why do billions of dollars in donations fail to solve the continent’s problems?

African countries receive more than $150 billion a year in aid from Western governments, international organizations and private funds. Although the amount of assistance is significant, many analysts and experts believe there are serious systemic problems that prevent the continent from implementing meaningful change. This begs the question: Why do problems such as famine, poverty and lack of infrastructure persist, despite billions of dollars in donations?

Historical Background 

Western philanthropy in Africa began long ago — in the early days of colonialism. A long-term effort to provide aid to African states started with the Colonial Development Act, passed by the British Parliament in 1929. It provided funding for the construction of infrastructure, power plants and water supply systems. Initially, Western countries were motivated by their private interests but by the early 20^th century the political agenda was focused on humanitarian considerations and the responsibility to help former colonies. 

The idea of the white man’s burden, which had gained currency in Western literature and politics, provided a moral framework for humanitarian efforts. This vision glorified by R. Kipling at the end of the 19^th century became one of the main moral pillars of Western countries that felt responsible for the development of the former colonies. Assistance to developing countries was also a way for Western countries to consolidate their political and economic position in the international arena. Participation in international aid programmes not only helped donor countries to improve their image but also to build strong relationships with recipient governments, giving them access to natural resources and markets.  

With the spread of globalization, aid to Africa has become an indispensable part of international relations. Today, private funds and organizations play an active role in international assistance alongside national governments. 

The main areas of the West’s charity work 

The West has a number of leading charities in Africa, including international organizations, private foundations and government programmes. The World Bank and the UN play the biggest role in providing financial assistance aimed to tackle problems such as poverty and famine and to improve access to education and health care. Their projects are aimed to build roads, power plants and water supply systems, contributing to a better quality of life and laying the foundations for sustained economic growth. 

The US and European countries are the main financial donors. Interestingly, Nordic countries such as Norway and Sweden allocate a significant proportion of their national income to aid Africa even though they did not have colonies in the region. In particular, Norway assigns 1.07% and Sweden 1.02% of their GDP to international aid.  

Other than international agencies, hundreds of non-governmental organizations (NGOs) are active in Africa, implementing projects across the continent. Over the past 20 years, the most prominent players on the continent have included the Bill & Melinda Gates Foundation, which focuses on health care, agriculture and financial services for the poor, and the Rockefeller Foundation, which supports initiatives in the area of food security, health care and renewable energy. The Ford Foundation promotes social justice, civil society and education. George Soros’ Open Society Foundations advocates democratic values and human rights. The Mastercard Foundation invests in youth education and entrepreneurship. Western foundations use a variety of channels to implement their programmes, including direct grants to local organizations and agencies, partnerships with African governments, establishing and supporting local NGOs, running their own projects through representatives in African countries, investing in social enterprises and impact investing.  

Achievements and positive outcomes 

Irrespective of numerous problems and criticisms, Western aid agencies in Africa can boast some significant achievements. International organizations and foundations have carried out a number of successful projects, which can have a positive effect on the development of the region. Success has been achieved in the areas of infrastructure development, health care, food security and education. The efforts of Western foundations have made a real difference to certain aspects of the lives of Africans. Their most successful initiatives in Africa have been the polio eradication programme (the Gates Foundation), the AGRA initiative to develop sustainable agriculture (the Rockefeller Foundation), scholarships for African students (the Mastercard Foundation), and renewable energy projects in rural areas (various foundations).  

Building and developing infrastructure is one of the major achievements. The World Bank and other organizations have invested into the building of roads and power plants, ensuring a better quality of life and economic growth. Roads, for example, have improved connections between rural and urban areas, facilitating access to markets and services such as health care and education. 

Western foundations have actively supported education projects that provide access to elementary and secondary education for children from poor backgrounds, especially in rural areas. Funding from a number of foundations has been used to construct schools, train teachers and provide scholarships, improving literacy rates across the continent. In addition, local people learn new skills and find jobs through professional training programmes. 

Another positive outcome is improved food security. International foundations work to develop the agricultural sector, introducing new technologies and training farmers in advanced farming methods. These efforts have led to higher crop yields and better food storage, reducing the scale of famine in some African countries. 

Western billions for Africa: a cure or a curse? 

Despite a number of positive results, Western charities have come under heavy criticism, with corruption, dependence on foreign aid and failed projects being the most serious. They are blamed for the fact that corruption prevents the major part of aid from reaching those in need. African government officials misuse and mismanage these funds. 

Africa has also seen its fair share of expensive but useless projects. In one such case, the Norwegian International Development Agency recently built a fish processing factory in northern Kenya to help local Turkana fishermen develop the regional economy. However, once construction was complete, it turned out that there was a shortage of energy to run the factory and no additional power generating capacity in the north of the country. 

In Tanzania, a cashew nut processing factory was built with money from Western donors. But for it to work at full capacity, it needed three times as many cashew nuts as the whole of Tanzania produces. In addition, the product price proved so high that it was cheaper to send cashews to India for processing. 

The problem with donor aid is that people who administer it have a limited knowledge of Africa. They travel business class, stay in five-star hotels and see the local people only through the windows of their armoured jeeps. Making lofty speeches and posing for photographs with ragged but smiling African children has become the order of the day in the international donor community. The reality for many charity managers is quite different, with private chauffeurs, chefs, gardeners and grooms. 

There is another reason, however. It lies in the system of evaluation applied to charities’ work. The point is that the success of a project is not always measured in terms of its economic impact. In contrast to the business world, the main criterion for evaluating the work of a charity is behavioural change, i.e. whether or not the recipients of aid have adopted new patterns of behaviour. “If the recipients have started using personal hygiene products, then it is good. If they haven’t then it is bad.” “If there are more women in charge of credit cooperatives, then it is good. If men remain in charge, then it is bad.” But many “progressives” are sure, that the pattern of behaviour promoted in the West with the money of Western taxpayers is uniquely right. They do not think much about long-term consequences for local communities, which can be quite bad. 

The main shortcoming of Western aid is that it largely fails to create conditions and incentives for African development. It creates a kind of financial addiction, which only deepens dependence on grants and tranches, with little possibility of breaking the vicious circle.  

From handouts to offering a helping hand 

What do Africans think of the philanthropy industry? People simply do not care about government tranches, which make up the bulk of donations. The truth is that this money is embezzled along the way and never reaches ordinary people. The many behaviour change programmes are seen by Africans as a Western fad whose purpose is unclear, but it would be wrong not to use the money that has been made available.

When Western inspectors arrive, Africans are happy to show them how much the community’s behaviour has changed, only to return to their old habits. Aid agencies are not able to provide definitive solutions to fundamental problems. Sending food is a partial measure, like plugging a hole. When the Soviet Union came and built factories and businesses for local communities free of charge, that was real help — people got jobs, money and investments that stayed in the country. But if all you get from humanitarian agencies is food and bottled water, what is it but an opportunity for the donors to show off their virtue?

International humanitarian workers are not much loved, and high-level officials even less, for their arrogance and hypocrisy and for the fact that they live like colonizers in the past.  

Africans are happy to receive any help but find it most useful when work places are created. Stable and well-paid jobs are far more important than any programme aimed to change behaviour. That is why Western businessmen are more respected in Africa than professional charity workers.