The funding sources for development programs have been neither stable nor predictable, particularly after the global financial crisis in 2008. It has become clear that while donor financing remains important, overreliance on donor funding will not sustainably drive the success of the two continental agendas, hence the need to focus on other development finance options such as domestic resource mobilization.1 If new sources of financing are not in place, Africa’s growth and industrialization strategies are likely to suffer an early setback. Agenda 2063 recommends that countries strengthen domestic resource mobilization, build continental capital markets and financial institutions, and reverse illicit financial flows for Africa to be self-reliant and finance its own development. So, development partners will need to align their efforts more toward supporting Africa’s domestic resource mobilization initiatives. Africa falls short on the required capacity to generate savings and taxes and to allocate the available resources to economically and socially productive sectors. This is where development partners are needed most, building on their experience, expertise, and resources. Development partners are defined here as the nongovernment actors that build relations with governments, emphasizing the importance of long-term partnerships and focusing on results that are inclusive and sustainable. This policy brief puts forward possible interventions by Africa’s development partners in building capacity in domestic resource mobilization.
