GRANT ELEMENT AND OFFICIAL DEVELOPMENT ASSISTANCE NEXUS IN SUB-SAHARAN AFRICA: A REVIEW AND STATISTICS

Obiamaka P. Egbo, Hillary Chijindu Ezeaku

Abstract


The main thrust of this paper is to examine the concept of grant element as applies in the development finance landscape. Statistical review showed that between 1985 and 2015, the average grant element from official creditors (multilateral and bilateral donors) to the Sub-Saharan Africa within this period is 58.54% and was highest at 73.48% in 2000. The lowest to the region over the same period was 38.00% in 2005. Typically, the underlying purpose of grant element and the concessionality associated with Official Development Assistance (ODA) is to facilitate economic development and improve social outcome of the recipient countries. This is for the reason that concessional funds mitigating the burden of debt services and enable help countries avoid excessive sovereign indebtedness.

 

JEL: H81; N17; N27

 

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Keywords


grant element; ODA; Sub-Saharan Africa

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References


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DOI: http://dx.doi.org/10.46827/ejhrms.v0i0.849

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