HomeAfricaThese 7 African Countries Can’t Live Without Aid

These 7 African Countries Can’t Live Without Aid

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Rwanda: 13.80% of national income

When Is It Right to Kill, Asks Rwandan President Paul Kagame
Rwandan President Paul Kagame

Rwanda has been able to push through some remarkable development successes over the last two decades following the devastating genocide in 1994 – including high growth, rapid poverty reduction and reduced inequality. But this has been largely on the back of donor funding. Earlier this year Christine Lagarde, the Managing Director of the International Monetary Fund (IMF), said that the country needs to reduce its dependency on international aid if it is to achieve its vision of achieving middle-income country status by 2020. This lack of financial independence means that it is highly vulnerable to fluctuations in aid flows. In mid-2013 for example, Rwanda experienced a lagged effect of the aid shortfall experienced the previous year, causing economic growth to decelerate to 4.7% from the average 8%. Another effect of high aid dependency is that its tax-collection efforts have fallen below its peers in Africa – making it even more dependent on foreign contributions.

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