Many African countries are moving out of aid dependency as the private sector boosts economic growth on the continentAn increasing number of African countries are beginning to step away from aid dependency, as the domestic private sector becomes the engine of growth across much of Africa. Currently, at least a third of African countries receive aid that is equivalent to less than 10% of their tax revenue. They include Algeria, Angola, Equatorial Guinea, Gabon and Libya. This is a significant change from years of high dependency on aid.
These are countries that have made the most progress towards replacing aid with domestically mobilised resources. On average, Africa has managed to raise an estimated $441 in taxes per person per year while receiving $41 per person annually in aid, according to a comprehensive look at African resource mobilisation by the African Economic Outlook 2011.
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