WHERE IS THE MONEY? Kenya Received 5th Largest Amount Of Foreign Aid In Africa
According to a new report, Kenya received the fifth largest amount of foreign aid in Africa in 2022 to cover government expenses.
The report is titled Financing Africa: Where Is the Money? The Mo Ibrahim Foundation reported that Kenya received Ksh.426 billion, with more than half coming from multilateral institutions such as the United Nations, the International Monetary Fund, and the World Bank Group.
Egypt received the most financial aid of any African country, totaling Ksh.995 billion, followed by Ethiopia, which received Ksh.684 billion.
Nigeria and DR Congo received Ksh.646 billion and Ksh.439 billion, respectively.
The top ten African countries, which have over 70% of the continent’s population, received nearly half (46.4%) of the total aid to the continent.
🚨 We are excited to announce the launch of our 2024 Forum Report: #FinancingAfrica: Where is the Money? 💰
— Mo Ibrahim Foundation (@Mo_IbrahimFdn) June 19, 2024
Africa's development financing gap is staggering. Our report found that the money to address these is there: what we need is a complete financing paradigm shift. 🌍💱 pic.twitter.com/g9AK3wrFuV
Africa received more global financial aid than any other region in the world, accounting for more than 28%.
Is Financial Aid Money Lost?
According to the report, many countries have difficulty absorbing donor funds due to political and administrative issues in managing investment projects.
According to estimates, between 10% and 70% of project financing funds go unused, depending on the country.
“When it comes to loans, donors see their money tied up with no return, while beneficiaries struggle with the underutilization of the financial resources allocated,” the report read in part.
One of the major issues raised in the report is mislabelling or undistributed aid, in which donor countries fail to provide the funds that they promised.
The report stated that over Ksh.24 trillion was supposed to be distributed but was not delivered.
Ajay Banga, President of the World Bank, attributed the delay to procedural issues with multilateral institutions.
The World Bank, according to the report, is the largest donor, providing more than Ksh.2.2 trillion in 2022.
“Currently, a World Bank project takes 27 months – on average – before a single dollar gets out the door,” Banga was quoted saying in the report.
“This is followed by a lengthy implementation process and project construction. Too often it’s longer than 10 years before the first benefits are felt. That is a lifetime. We must do better. And there is precious time we can save.”
WHERE IS THE MONEY? Kenya Received 5th Largest Amount Of Foreign Aid In Africa
