As the second day of the Evidence for Development Conference kicked off in Nairobi, African governments have been urged to abandon outdated aid models and focus on smarter, locally grounded solutions to finance the continent’s future.
Policymakers, economists, researchers, and civil society actors gathered at the conference to not only discuss policy but to actively reshape Africa’s approach to funding its development.
The conference, which emphasizes the importance of data, evidence, and community input in policy formulation, placed domestic financing at the heart of discussions.
A key message emerged from the day’s sessions: for Africa to achieve its long-term goals, particularly the African Union’s Agenda 2063, it must prioritize optimizing domestic resources over relying on external aid, especially as development aid from international partners continues to dwindle.
A Presidential Advisor on Health Financing in Kenya Dr. Daniel Mwai highlighted the inefficiencies in Africa’s health systems, pointing out that with better planning and integration, costs could be reduced by as much as 40 percent.
He called for a shift toward preventive healthcare and a more coordinated approach to service delivery.
Subnational leaders like the County Executive Committee Member Health from Homa Bay County Roseline Omollo shared innovative, community-led strategies to improve healthcare delivery and reduce costs. Her county’s efforts to boost enrollment in the Social Health Authority (SHA) and engage citizens in health management served as a model for other regions.
A recurring sentiment was the need to move away from Western development templates that ignore Africa’s social, cultural, and economic contexts.
The Executive Director of the African Economic Research Consortium (AERC) Prof. Victor Murinde urged African governments to embrace the “Big Five” of Big Data—Volume, Variety, Velocity, Veracity, and Value—to transform domestic financial systems.
He emphasized on the role of AI and Machine Learning in credit scoring, asset management, and central banking, warning that innovation must be matched with integrity, talent, and ethical governance.
Dr. Jackson Otieno from the African Institute for Development Policy (AFIDEP) presented a sobering fiscal picture, noting that in 2020, development aid made up more than 20 percent of health spending in 24 African countries, surpassing government expenditure in 10.
“African countries must transition from donor dependency to domestic resource mobilization,” he said, recommending health taxes, anti-corruption measures, and expanded insurance coverage to unlock greater resources for development.
“Citizens are reaching their limits. Governments must spend efficiently, prioritizing high-impact public goods and reducing wastage,” added Kwame Owino, CEO of the Institute of Economic Affairs.
The conference, co-convened by AUDA-NEPAD, AFIDEP, and SFA Foundation, also explored the role of emerging technologies like Big Data, AI, and machine learning in optimizing financial systems and improving governance. These technologies, experts said, could help Africa make better use of its resources, reduce inefficiencies, and drive inclusive growth.
With growing global uncertainties, shrinking aid, and increasing debt burdens, the call for African countries to transition from donor dependence to domestic resource mobilization was loud and clear. The takeaway is clear: Africa must take ownership of its destiny by financing its development from within.
By Violet Otindo
