Editor’s Note: February 21, 2019
What’s so bad about aid?
Ghana’s parliament is due to consider the adoption of a roadmap to help end the country’s reliance on development assistance – or aid. The plan is part of the wider debate about whether aid has a role to play in driving development in Africa.
For many the answer is no. At best it’s seen as ineffective, if it isn’t actively contributing to underdevelopment.
There is room for nuance here.
When we speak of aid it’s usually in reference to the patronizing, Western-led charity epitomized by initiatives like Band Aid. This approach has largely been discredited, helping to drive a shift towards an emphasis on using development assistance to drive private investment.
Development finance institutions for example – often partially or fully funded by aid budgets – have played an important role in catalyzing investment. Private equity in Africa would not be where it is today without them.
Another example is Kenya’s M-Pesa mobile money platform, which has helped transform the finance space on the continent. It started with funding from the UK’s Department for International Development.
The rise of new donors like China – with its emphasis on infrastructure – has also been important in catalyzing private investment.
The point is that Africa doesn’t face an ‘either or’ choice between aid and investment. The former can actually be quite useful.
From The Continent
Uganda’s ruling party has endorsed longtime president Yoweri Museveni, in power since 1986, as its candidate for presidential elections in 2021. This follows the passing of a law last year removing presidential age limits, raising fears Museveni intends to extend his rule indefinitely. More: Washington Post
Zimbabwe’s central bank has scrapped the peg between its quasi-currency bond note - introduced in January 2017 - and the US dollar. This is part of efforts to tackle the country’s worst economic crisis in a decade. More: Reuters
The Daily Stat
The size of a three-year bailout for South Africa’s struggling power utility Eskom, announced in the country’s 2019 budget on Wednesday. More: CNBC
The Global Perspective
The UN has warned that foreign oil companies may be complicit in war crimes in South Sudan. This is part of a new report into continuing war crimes in the country, despite a peace deal signed in October to end a five-year civil war. More: New York Times
Canada’s Barrick Gold has outlined details of a deal with Tanzania’s government to end an ongoing dispute with Acacia mining, including a $300m payment to resolve tax claims. The London-listed company’s shares rose 6% on the news, to their highest since October 2017. More: Reuters