The Dominance of Supply over Demand: Dynamics of Overseas Development Assistance in Africa
5 min read
Christopher Burke
By Christopher Burke, Managing Director, WMC Africa
Monday, 17 July 2023 (PW) — Overseas development assistance (ODA) for Sub-Saharan Africa is dominated by supply not demand rendering the development of unsolicited proposals a futile endeavor. ODA policies are influenced by factors distant from the needs on the ground, driven by the availability of funds and strategic considerations linked to the development partners’ business interests.
Throughout my career working in the development sector, I have received countless well-intentioned unsolicited proposals from local non-government organizations (NGOs) and community-based organizations (CBOs). These institutions remain totally oblivious to the fact funding decisions are centralized at distant head offices with limited input from field offices. This geographical distance hampers nuanced understandings of local needs and delays the allocation of resources required for timely action.
The rise of right-wing nationalism in Europe and North America, economic contractions, shifts in the global balance of power and the COVID-19 pandemic prompted governments to prioritize domestic concerns over international aid efforts. The conflict in Ukraine has also diverted development resources from impoverished regions globally. While the total value of ODA has increased slightly, there have been significant changes in the form, delivery and focus of ODA to climate change, refugee costs infectious diseases and food security. Country programme funds have decreased markedly.
While emergency relief primarily prioritizes immediate needs, development assistance is influenced by both political and economic geostrategic considerations. Foreign aid to Africa has a long history predating the colonial era; but it was the televised humanitarian crisis during the 1967-1970 relief operation in Biafra that drew global attention. The West African crisis exposed the challenges and contradictions inherent in relief and development interventions, highlighting the importance of evaluation and accountability.
During the 1970s, donors and development partners emphasized meeting basic needs and improving human indicators. To accompany these objectives, attempts were made to reduce economic dependency among recipient countries aimed to transition nations towards self-sufficiency and sustainability. The desired outcomes often proved elusive.
The intertwined nature of relief and different forms of development assistance underscores the need for comprehensive and holistic approaches. While emergency relief addresses immediate crises, long-term development initiatives need to be implemented with careful consideration of the underlying political and economic dynamics. Evaluation and accountability mechanisms play a crucial role in ensuring that aid interventions effectively address the needs of the population and promote sustainable development.
The 1980s witnessed structural adjustment programs, escalating debt burdens and bilateral aid efforts, alongside famines and conflicts in Africa. NGOs emerged to address pressing challenges, such as Operation Lifeline Sudan (OLS) during the Sudanese conflict. The 1990s saw a growing emphasis on governance and capacity building, with countries like China, Japan, Russia and South Korea playing a prominent role in providing financial and technical support for development initiatives.
There has been a distinct shift from the provision of direct government budget support to targeting specific projects and sectors over the past two decades. While social development remains important, the focus has shifted toward infrastructure development that facilitates investment and access to African markets. This aligns with the economic imperatives of Western countries seeking to safeguard and advance their own markets.
Investment, both domestic and foreign, emerges as the most potent driver of economic development, allowing countries to tap into capital, technology and expertise. Development assistance serves as a tool to exert influence, but tensions often arise due to separation from foreign relations institutions. Some donor countries have undertaken organizational changes to enhance coordination and coherence between development efforts and foreign policy objectives.
Greater integration and synergy between development assistance and foreign policy goals are recognized as necessary. It is crucial for organizations to have a direct connection with decision-makers in the head offices of development partners. In cases where such a connection is lacking, local NGOs and CBOs are better off utilizing available resources to improve existing projects, strengthen internal capacity and wait for specific requests for proposals before responding.
A comprehensive and holistic approach, coupled with greater integration between development assistance and foreign policy objectives is necessary to address the complex dynamics and promote sustainable development; however, the dominance of supply over demand in ODA allocation seriously hampers the effectiveness of development efforts in Africa.
This is most acute in South Sudan where donor fatigue has seen a decrease in humanitarian assistance from $1.48 billion in 2017 to $1.30 billion in 2022 reported by UN OCHA Services, Financial Tracking Service. Sadly this drop has occurred when the fledgling states needs the greatest help. Poor governance, corruption and challenges with the credibility of governments across Africa and South Sudan in particular have left many development partners wary.
Approximately 88 percent of humanitarian funding to South Sudan was channeled through the UN and multilateral organizations with only around 10 percent allocated to local NGOs and civil society organizations according to the Global Network Against Food Crises’ 2021 Report on financing flows and food crises. Local institutions need to be brought back into the equation to strengthen the identification of needs and deliver humanitarian assistance. A report published earlier this year by the Stockholm International Peace Research Institute (SIPRI) examining the humanitarian-development-peace nexus in South Sudan presents a strong argument for a thorough revision of ODA interventions.
Geographical distance, budget cuts, credibility challenges and shifting priorities have all contributed to the growing disconnect between funding decisions and pressing needs on the ground. In the meantime, there is little to no point for local institutions to invest scarce time and resources developing proposals based on observed needs where there is no direct connection to the decision-makers within the head offices of development partners.
The author, Christopher Burke, is the managing director of WMC Africa, a communications and advisory agency in Kampala, Uganda. Christopher has spent almost 30 years working on a broad range of issues in development, communications, governance and peace-building in Asia and Africa, with extensive experience in South Sudan.
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