Page 90 - Msingi Afrika Magazine Issue 14

Leadership

What Will Be The Impact Of Foreign

Aid Reduction To The

African continent?

By Natasha Fuyane

Article originally published in The Southern African Times:
https://thesouthernafricantimes.com

LONDON, (The Southern African tary transfer of resources from one of its national income. The United
Times) – The world as we know it is country to another. Foreign aid has Nations has a target for nations to
changing at a rapid pace. Ideologies are been a lifeline to some regions in spend approximately at least 0.7%
shifting, governments around the world are the African continent, for example, of their national incomes. In 2020,
contending with fierce dissension and great as per the Oakland Institute, the only a handful of western nations
unknown unknowns. In the midst of pan- aid Ethiopia receives from the US, were meeting and exceeding that
demic headlines, one underreported area UK and the World Bank represents target. This included Germany at
of change is the reduction of foreign aid approximately 50% to 60% of its 0.73%, UK at 0.7%, Denmark at
budgets to the African Continent. What national budget. 0.73%. Norway and Sweden were
will be the impact of foreign aid reduction high performers with their aid bud-
to the African continent? In July 2021, the UK government gets at 1.11% and 1.14% of their
announced that it was slashing its national incomes respectively.
Foreign aid foreign aid budget by approximately
Foreign aid takes many forms. It £4 billion a year. It reported that it Notably, the United States’ foreign
can be in the form of money grants, is cutting its foreign aid budget from aid budget in 2020 was only 0.17%
food and supplies. It is the volun- 0.7% of its national income to 0.5% of its national income with France

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