Europe's 'Aid Mentality' Approach to Africa is Self-Deceptive, Professor Says

Europe's "aid mentality" approach to Africa, with the belief that aid is a form of compensation for past colonial injustices, is self-deceptive, honorary professor at the Nelson Mandela School of Public Governance of the University of Cape Town, Dr. Carlos Lopes, told Sputnik Africa.

"For such a long time, and that is the mentality, the mindset, that has prevailed in the engagements between the two sides, and one characteristic of that mindset is the belief on the part of the Europeans that they are going to help Africa by compensating for the past colonial times with aid," Lopes, who is an author of a book on Africa-Europe relations, the expert said.

The "charity principle" has influenced European policies, creating the illusion that Africa is perpetually in need of help, and its inferiority can only be addressed with some sort of compensation, the speaker emphasized.

"That's the self-deception on the part of the Europeans, to believe that they are going to actually engage in transforming Africa through aid," he stated.

Furthermore, African nations have to fight against regulatory systems that keep them dependent, Lopes advised.

"For instance, the credit rating agencies have rated African economies, all of them, in the speculative category and dumping category. So, there's not a single country in Africa for some years; it was the case with Botswana as the exception, that is, an investment grade by all the rating agencies," the professor pointed out.

Such disparity makes development very difficult for a continent with limited financial resources, as borrowing costs for African governments far exceed those of developed nations like Germany, the expert stated.

"The cost of capital for Africa is the highest in the world. Now, how can you expect that the region that has the least resources would be able to develop with the highest cost of capital? What do you expect is going to be the problem with that? If the German government borrows at 0% and the Ghanaian government borrows at 11%," he said.

The fact is that the issue extends beyond credit ratings to broader regulations that disadvantage Africa, according to the speaker.

"The odds are against Africa. But it's not just credit rating agencies; it's not just the cost of capital; it's every single regulation that does not favor Africa. So, it's not about aid. It's about fighting for changes in regulatory systems," Lopes noted.

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To Succeed in Industrialization, Africa Should Embrace Regional Integration, Learning From Japan

While Japan's economic strategy of integrating neighboring Asian countries into its value chains ultimately led to industrialization, African nations must adopt a similar approach, the South African professor continued.

"This is what Japan did with Asian countries around its belt and eventually industrialized with value chains distributed in a number of other countries. Africans will have to emulate such a practice, which means that our engines of growth will have to take lead positions and will have to admit that we are only going to make these unified positions work," he explained.

With African nations' growth engines leading regional integration efforts, this process also requires a comprehensive approach that goes beyond trade to include infrastructure development, macroeconomic policy alignment, and the free movement of people, the expert noted.

If such an approach is adopted, Africa has a chance of becoming "a real powerhouse," supported by the continent's "youthful demographics while much of the world faces aging populations," Lopes added.

"These are megatrends that favor Africa if we harness them. And that's basically what the challenge is: How to make sure that this becomes policy. And for that, it's very different from the development approach that we have followed so far, which was based on this possible concept of compensation inspired by charity," he concluded.