An examination of the impact of foreign aid on poverty reduction in South Africa, 2015 2020: A case study of the Gauteng province

Abstract

The study examined the impact of foreign aid on poverty reduction in South Africa from 2015 to 2020 using the Gauteng province as a case study. To determine the impact of foreign aid on poverty reduction in South Africa, the research investigated whether foreign aid can or cannot assist in addressing poverty and the research explored the possible influence of foreign aid on poverty reduction across South Africa using Gauteng as a case study. The research relied heavily on already existing scholarly work published in credible journals and publications from internationally recognised organisations like the World Bank and IMF. The study employed the convenience sample technique to carefully select and review empirical data and research papers that explored the relationship between poverty and foreign aid in-depth to examine how foreign aid contributes to equal access of people to basic poverty reduction essential services, determine the extent to which foreign aid received by the South African government is utilised judiciously to eradicate poverty, examine the sustainability of foreign aid in the eradication of poverty, and identify challenges facing the utilization of foreign aid and show how can they be improved, leading to poverty reduction in Gauteng province. Foreign aid in Gauteng has a minimal or no effect on poverty reduction, and though foreign aid normally stands a good chance of reducing poverty by increasing average income, this is not the case in the Gauteng province. Foreign aid is only effective in its intended goals if the recipient state has quality institutions and good policies. Foreign aid is insufficient to effectively alleviate poverty in Africa. This is due in part to the fact that some aid comes with strict or harsh requirements, while others are given to undermine the sovereignty of most African states through land grabbing and excessive control over natural resources. In order to address the high levels of poverty in Gauteng the study recommends that the government puts in place new policies that are not grounded in the previous colonial structure. The government needs to ensure that these policies are citizen-centred and give all communities access to basic essential services that are not segregationally in favour of the rich population.