Aid to Africa: The Changing Context

Abstract

To continue its economic growth and create new and better livelihoods, Africa must transform the productive side of its economy. Ongoing globalization — in trade, finance, and technology — opens up new possibilities for structural transformation, but also new risks as Africa’s integration with the global economy evolves. Climate change is impacting productive sectors and the livelihoods linked to them. Consolidating war-to-peace transition remains imperative for the Democratic Republic of the Congo, Somalia, and others, as they need inclusive growth to reinforce the politics of peace. This is the context within which official development assistance must operate and evolve if it is to remain useful.

Keywords: Africa, economic growth, official development assistance, climate change

JEL Classification: E0, O1, O2, O4