Why Foreign Aid Failed In Sub-Saharan Africa

In economic terms, foreign aid is viewed as a catalyst of an upward growth of Gross Domestic Product (GDP) of the recipient nation as it complements the domestic sources of finance to increase the amount of investment and capital stock. Over the years, many Sub-Saharan African countries have been receiving huge amounts of foreign aid to enhance economic growth and reduce poverty. However, the poverty reduction rates have been disappointing to raise doubts on the effectiveness of foreign resulting in a chain of debates among experts. It’s believed that, most ineffectiveness of foreign aid is as a result of poor governance, poor institutions setup, and lack of political goodwill as well as poor aid delivery process. This paper attempt to shed light on how domestic government practices and foreign aid delivery processes have became a hindrance to achieve progress in the war against poverty reduction in Sub-Saharan African Countries.