The Role of Foreign Aid in Promoting Gender Equality and Social Inclusion in Africa

ABSTRACT This study investigates the impact of foreign aid on social inclusion in Africa using the system Generalised Method of Moments (S‐GMM) estimation technique. The results reveal that net official development assistance (ODA) as a percentage of gross national income had an adverse effect on total vulnerable employment. Similarly, net official development assistance per capita, official and received and net official development assistance received only had a negating effect on male vulnerable employment. However, a positive impact exists between net official development assistance as a percentage of gross capital formation and female vulnerable employment. Trade openness has no significant effect across all the models. Therefore, African economies should completely implement social inclusion and enhance workers' rights and working conditions. Inclusive projects ranging from inclusive labour markets, better working conditions and greater social security need to be put in place for efficient delivery of official development assistance. Lastly, the unique challenges that females have in gaining access to resources, particularly as regard to reducing vulnerable employment through foreign aid should be identified and addressed.