By Vera Anyagafu

The United States is re-evaluating its foreign aid approach to African countries, driven by concerns about effectiveness and accountability.

For decades, the US  invested billions in aid, yet many African nations continue to struggle with poverty, corruption, and underdevelopment.

A key concern is that current aid models perpetuate dependence rather than fostering self-sufficiency. 

According to Special Representative, Common Market of Eastern and Southern Africa (COMESA), Senior Foreign Service Officer and US Ambassador to the Republic of Zambia, Ambassador Michael C. Gonzales, “Too often, what is needed for economic growth and development is not more money, but sound reforms that incentivize enduring private investment and growth.”

He stated that the US wants to move away from just funding projects/outputs and instead tackle the underlying causes of poverty. 

In the past, they had often just addressed the symptoms, not the root problems, which did not really help create lasting change.

This approach let down both American taxpayers and people in developing countries who were counting on their governments and the US to help them build a better future, he added.

He also pointed out that corruption is a major obstacles, relating that African countries lose an estimated $88 billion annually to tax evasion, money laundering, and corruption, a staggering figure given the $200 billion in US aid since 1991.

“The US seeks to curb corruption by promoting transparency, accountability, and private sector-led growth.

The Millennium Challenge Corporation (MCC) model offers a promising approach, requiring host governments to co-finance projects and meet specific conditions. 

This performance-based funding ensures aid is disbursed based on tangible results.

By reforming foreign aid, the US aims to promote accountable governance, economic growth, and shared prosperity”, Gonzales noted.

He went on to state that America’s generosity in doing business with those who help themselves remains as strong as ever, saying, “We are not turning away from less developed nations, instead now is the time to lean in to lend a useful hand to those who are sincere and treat them as mature stakeholders. In engaging valued, sincere nations, nothing should be imposed, hidden, given as ultimatums, or come at the partner’s expense; we are not China. Foreign assistance that delivers for the American people and our partners must be founded on sincere, voluntary, and transparent engagement. But it must be backed by tangible action and, if a recipient nation proves through their actions that they are not committed to our professed shared objectives, our allegiance must first be to the American people to be stewards of their resources.” 

The US Ambassador to the Republic of Zambia also declared,  “American foreign assistance is not charity but a tool to advance American diplomacy, security, and prosperity. To accomplish these goals, we must focus our assistance and insist on administering it with host-government buy-in and mutual accountability for outcomes. This, in turn, will leave space for market driven growth that will also help close off the means by which malign international actors exploit developing economies and workers. We should not be dissuaded by detractors who will attempt to vilify a more transactional approach as ‘neocolonialism’.”

He however, expressed his passion for Africa and the developing world, saying he’s energised by Africa’s vast potential.

He’s seen how the US can help unlock this potential, benefiting both nations, noting, “By reforming foreign aid and partnering with countries based on mutual interests, the US can tackle corruption and help families achieve a better future.

The goal is a new era of mutual accountability, where aid catalyses sustainable growth and benefits both African nations and the US.” 

 KEY PRINCIPLES

Key principles guiding this reform includes:

 PARTNERSHIP

– Partnering with governments that demonstrates ability and willingness to help themselves

 DISBURSEMENT

– Disbursing funds based on performance

 CORRUPTION

– Curbing corruption and addressing growth barriers and or constraints 

 STRATEGIES

– Developing realistic and focused strategies with host governments

 CO-FINANCING

This approach ensures host governments have a vested interest in the project’s success by requiring co-financing and meeting specific conditions, in addition to providing tailored technical assistance, and outlining shared objectives and commitments explicitly.

Meanwhile, proponents argue that this approach can deliver lasting growth, reduce corruption, and advance US interests.

However, as the US embarks on this new path, questions remain about its effectiveness and potential impact. 

Will this approach succeed where others have failed, or will it face resistance and criticism?