NAIROBI, Kenya, Nov 30 – African governments must urgently shift away from donor-dependent development models and build stronger domestic financing systems, economists and policymakers warned at the AERC Research and Policy Summit in Nairobi.
Experts said the continent’s reliance on foreign aid has weakened fiscal resilience, limited economic independence and left countries exposed to global shocks, even as donor budgets shrink and debt burdens rise.
National Treasury Cabinet Secretary John Mbadi, in remarks delivered on his behalf, said Africa’s development path cannot continue to hinge on external goodwill.
“For decades, foreign aid has been a lifeline, but it has also been a leash tying our progress to external goodwill rather than our own ingenuity,” he said. “What we need is not more aid, but more courage to harness what we already have.”
Economists at the summit noted that widening debt-service pressures, volatile commodity earnings and tightening global financial conditions have restricted fiscal space across the region, making alternative funding sources urgent.
Central bank governors participating in the event underscored the need to deepen regional financial integration to expand access to private capital and strengthen intra-African investment flows.
AERC Executive Director Victor Murinde said the institution’s 2025–2035 strategy aims to equip policymakers with research-driven tools to design homegrown financing frameworks.
As part of the shift, AERC launched the African Private Sector Platform (APSP) to bring industry players into policy discussions and broaden the base of development financing beyond governments and donors.
AERC Board Chair Ernest Aryeetey said the platform is expected to help drive “private-sector-led economic transformation” by improving collaboration between researchers and businesses and supporting the development of competitive, well-funded industries.
The three-day summit, attended by central bank governors from East, West and Southern Africa, is examining macroeconomic headwinds, policy coordination and structural reforms needed to build long-term economic resilience. Discussions cover financial sector development, labour markets, climate finance and digital economy growth.
