/ 22 January 2025

Africa in the driver’s Seat: Funding our own development

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At a time of intensifying geopolitical competition for critical resources, it is more important than ever for African nations to assert their sovereignty and control over their development pathways.

Africa’s nations have long been dependent on foreign aid to develop. But Gabon, a small, forest-rich nation emerging from decades of one-family rule, is demonstrating a different path. Despite political and economic uncertainties, the country is making a bold bet: that its vast rainforests, oil wealth and government revenues can fuel its own development and it’s investing $200 million in its people’s future.

The old development model based on foreign aid is a thing of the past. In 2022, development aid hit record highs, mostly in support of Ukraine and for humanitarian needs, but it fell for developing countries, according to the United Nations Conference on Trade and Development. Most seriously affected were the least developed countries (LDCs) with aid flows decreasing by 4%. By 2022, the LDC’s share of global aid had reached a decade low. 

Moreover, several recent studies have shown that foreign aid has failed to deliver sustainable economic growth and reduce extreme poverty. In her book Dead Aid, Zambian economist Dambisa Moyo argued that foreign aid creates dependency, fosters corruption, encourages currency overvaluation and does not allow countries to take advantage of the opportunities provided by the global economy. She challenged many assumptions arguing that aid had not merely failed to work but had compounded Africa’s problems.

Given these many factors, it’s time for new development paradigms. Poverty’s complex roots in social, political and environmental problems demand country-specific solutions that leverage local strengths. While sub-Saharan Africa faces significant poverty, its natural resources and youthful population provide opportunities to drive sustainable development tailored to each nation’s circumstances.

Over the past 10 years, African governments have increasingly committed to funding their own development through partnerships such as the Emergency Community Development Programmes (Programme d’urgence de développement communautaire or PUDC) with the United Nations Development Programme (UNDP). Countries such as Senegal ($233 million), Democratic Republic of the Congo (DRC, $644 million) and now Gabon ($200 million), allocate funds to meet their development objectives.

Governments have built essential infrastructure. In Senegal, 373 wells and water towers were built, with roads connecting 730 villages. In the DRC, 286 health centres, 424 schools, and 172 solar plants were installed in previously neglected areas. This has created opportunities and employment for women and youth, a direct benefit of governments investing in their own development.

For countries with abundant resources — whether oil, timber, fisheries or minerals — the blue-green economy offers an innovative path to self-funded development. Forests are critical natural capital for meeting the world’s sustainable development goals.

In 2021, Gabon was recognised by the Central African Forest Initiative for its environmental practices and park management, becoming the first country on the continent to receive a $17 million down payment from a $150 million fund for carbon emission reductions and resource stewardship.

Creating jobs in eco-tourism and nature-based products is vital for sustainable development. 

Good governance and strong institutions are hallmarks of a resilient society and a strong business environment. African governments who subscribe to best practices in transparency, the rule of law and adherence to human rights consistently rank high for doing business and are safe bets for investment returns. Mauritius, for example, ranked 13th in the world and first in Africa for Ease of Doing Business in 2020. With an accent on digitalisation, a diverse expat community of English and French speakers, international schools and state-of-the-art health care, the island nation has created a stable political and economic environment conducive to investment and growth. 

The private sector and private capital vote with their feet and gravitate to places where contracts are enforced, infrastructure is sound, education is valued and rights are respected. NextGen youth are increasingly outspoken on social media and other platforms, demanding accountability — and opportunity.  

At a time of intensifying geopolitical competition for critical resources, it is more important than ever for African nations to assert their sovereignty and control over their development pathways. While the recent “coup belt” from Guinea to Sudan was in many ways a setback for those countries, in Gabon, the political transition has created new opportunities for creative thinking with the government in the driver’s seat, alongside re-energised co-pilots in civil society and restored institutions. This bodes well for both Gabon and the future of development in Africa.

Francis James, who has more than 30 years’ experience working in development contexts in Africa and Asia, leads the United Nations Development Programme in Gabon as its resident representative.