Foreign aid plays a crucial role in the economies of developing countries. It is a development tool designed by high-income countries to assist low-income nations in increasing economic growth, improving the well-being of the population, and facilitating institutional development. The empirical evidence on the effectiveness of aid on economic growth in developing countries is mixed, however, and there is limited economic literature on the impact of aid in Sub-Saharan African countries. This study utilizes data from the World Bank and models from previous economic studies to determine that the large transfers of aid to Sub-Saharan Africa prevent the development of self-sustaining habits that could lead to economic growth in Sub-Saharan African countries.
