The Africa Governance Report 6.3.3 Dependence on Official Development Assistance (ODA) Although Africa is a net contributor to the wealth of developed countries and others through IFFs, and through legal channels, the continent is highly dependent on ODA from developed nations. The dependency ratio varies significantly across different countries. Even some countries that have reasonably high levels of domestic resources from economic activity remain highly dependent on foreign resources. The table below illustrates the proportion of ODA to total government expenditure averaged over a ten-year period between 2007 and 2017. It is evident that those countries that are in conflict, or are recovering from one have a higher proportion of ODA to total government expenditures, pointing to the prevalence of resource mobilisation and institutional challenges at country level. Figure 6: Net ODA as a percentage of government expenditure by region Source: Development Indicators 2018, World Bank Group As the table shows, the contribution of ODA to total government expenditure is very low in north Africa. On the other hand, the South relies heavily on ODA, followed by the west and Central regions. Strengthening domestic resource mobilisation efforts and promoting efficiencies in the use of resource in these regions, will reduce dependency on ODA and improve sovereignty in policy decision-making and implementation. 6.3.4 Corporate Governance and Development The AU Agenda 2063 and the 2030 Agenda for Sustainable Development both emphasize the importance of rapid and inclusive economic growth that is underpinned by structural economic transformation. Such transformation should be delivered by the private sector. Good corporate governance aims to boost the development and sustenance of corporations in a manner that serves both businesses and citizens. As such, it contributes to the development of the economy and society through increased job creation, improved socio-economic conditions, and greater contribution to the fiscus. The principles of good corporate governance, which include transparency and accountability, primarily promote the efficient use of natural, financial and human resources. The link between good corporate governance and development is premised on the need to balance economic, social and environmental factors. Adherence to these principles also boosts Page 74 of 96