Institutional Reforms in Africa: A Catalyst for Democratic and Economic Advancement

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hile the common narrative of 2024 was of African democracy in decline, this overlooks the long-term trend on the continent and fails to recognize pent-up demand for democracy. It also obscures the less visible stories of democratic progress and economic opportunity that many African nations have experienced.  

 Despite a few high-profile setbacks, more than half of Africa’s population has seen improvements in their country’s governance over the last decade, and the long-term trend is unequivocally positive. Yet progress has plateaued in recent years, and democracies have not always delivered.  

Rather than focus on the negatives, the United States and countries seeking to engage more deeply with Africa should work closely with African nations that have undertaken reform agendas or embarked on a newly democratic path. For example, The Gambia undertook a historic transition to democracy after 22 years under the Jammeh regime. In addition, Senegal’s 2024 presidential elections saw a Constitutional Council decision that facilitated a peaceful transition of power underpinned by Senegal’s well-established institutions and tradition of democracy.  

These examples also present economic opportunities. While democracy has a positive and direct effect on economic growth—increasing gross domestic product per capita by 20% in the long run—this depends heavily on the context. At the Millennium Challenge Corporation (MCC)—a US government agency with a mission of poverty reduction through economic growth—we only work with relatively well-governed democracies. With over $10 billion invested in Africa, MCC has supported developing democracies through better public services, investments in human capital, and expanded employment opportunities for their people—initiatives expected to benefit 154 million people.  

Over MCC’s 20-year history, we have worked with two dozen African countries that meet our selective eligibility criteria. The “MCC effect” incentivizes potential partner countries to institute difficult but necessary policy and institutional reforms. This is in line with the US Strategy on Global Development’s commitment to “strengthening democratic renewal and advancing good governance.” Alongside large-scale infrastructure investments, each compact or threshold program also includes a strong focus on policy and institutional reform that recognizes that “institutions matter.” For instance, as part of the $322 million MCC-Lesotho Health and Horticulture Compact, the government of Lesotho signed laws countering domestic violence and enabling women to own land and contribute to the country’s economy. 

A few positive examples do not necessarily mean that democracy will continue to be favored across Africa. But we must also recognize steady progress across the continent and leaders who are making difficult policy and institutional reforms to fight corruption and expand democratic rights. By delivering on the promise of democracy, continued progress will reinforce African calls for democracy and better position African citizens in a global economy, where Africa will lead the way. 

Chidi Blyden is the deputy CEO of the Millennium Challenge Corporation. Jake Grover is a senior policy advisor at the Millenium Challege Corporation.

Authors

Africa Program

The Africa Program works to address the most critical issues facing Africa and US-Africa relations, build mutually beneficial US-Africa relations, and enhance knowledge and understanding about Africa in the United States. The Program achieves its mission through in-depth research and analyses, public discussion, working groups, and briefings that bring together policymakers, practitioners, and subject matter experts to analyze and offer practical options for tackling key challenges in Africa and in US-Africa relations.   Read more

Africa Program