The Nexus Between Agricultural Aid and Poverty Alleviation in Sub-Saharan Africa
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Date
2026
Authors
N’Dri Kan David
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
The primary objective of this study is to examine the effectiveness of foreign
public aid in reducing poverty in sub-Saharan African countries. Employing a
methodological framework that encompasses linear panel and simultaneous
equations models, we aim to assess the hypothesis that such aid contributes
to poverty reduction by enhancing agricultural productivity. Our analysis
yields evidence indicating a positive and statistically significant effect of
international aid allocated to the agricultural sector on agricultural
productivity. A 1% increase in aid per worker is associated with a 0.198%
increase in agricultural productivity, holding other factors constant.
Furthermore, our findings elucidate that increases in agricultural productivity
exert a mitigating influence on poverty levels within the sub-Saharan African
context. A 1% increase in agricultural productivity is associated with a 0.02
percentage point decrease in the poverty headcount ratio, on average, all else
being equal. The results indicate that foreign aid affects poverty and
agricultural productivity in the selected countries. Therefore, it is suggested
that international donors increase their aid to foreign agriculture, focusing on
methods that boost productivity. Consequently, our results highlight the
imperative of maximizing the productivity-oriented outcomes of agricultural
aid, thereby enhancing its effectiveness in efforts to reduce poverty.