Montenegro’s Ministry of Finance has publicly criticised the aid programme Seguro, accusing it of mismanagement and inefficiency. The remarks come after a recent audit revealed that nearly 40% of allocated funds failed to reach intended beneficiaries. The country’s finance minister, Ana Petrović, stated that the delays have undermined efforts to improve infrastructure and public services in the Balkans region. The issue highlights a broader challenge facing African development, where aid distribution often faces obstacles due to bureaucratic hurdles and corruption.

Montenegro’s Aid Crisis Deepens

Montenegro’s finance ministry recently released a report detailing the inefficiencies in the Seguro aid programme. The report found that only 60% of funds were properly distributed, with the remaining 40% either lost in transit or misallocated. The ministry blamed Seguro, a European Union-backed initiative, for poor oversight and lack of accountability. “Muita da ajuda perdeu-se pelo caminho por falta de organização,” said Petrović, a reference to the Portuguese phrase “much of the aid has been lost due to lack of organisation.”

Montenegro Slams Aid Delays Amid Corruption Claims — Economy Business
economy-business · Montenegro Slams Aid Delays Amid Corruption Claims

The issue is not unique to Montenegro. Across the continent, aid projects often face similar problems, with funds failing to reach the communities that need them most. In 2022, a World Bank study found that up to 30% of development funds in sub-Saharan Africa were misused or delayed due to poor governance. This has slowed progress on key development goals, including poverty reduction and improved access to healthcare and education.

Impact on Local Communities

Residents in the coastal town of Bar, one of the hardest-hit areas, have reported delays in infrastructure projects. A local school, built with Seguro funding, remains incomplete after two years. “We were promised a new building, but nothing has happened,” said Mirko Đorđević, a parent and community leader. “This is not just about money—it’s about trust.”

The failure to deliver on aid commitments has eroded public confidence in both local and international institutions. In a country like Montenegro, where the economy is heavily reliant on foreign investment and aid, such setbacks can have long-term consequences. The government has now called for stricter oversight and more transparent reporting from all aid agencies operating within its borders.

Broader Implications for African Development

The situation in Montenegro mirrors challenges faced across Africa, where development projects often struggle with implementation. According to the African Development Bank, only 55% of infrastructure projects in sub-Saharan Africa are completed on time and within budget. Poor governance, lack of coordination, and corruption are cited as major obstacles.

For African countries striving to meet the Sustainable Development Goals (SDGs), such inefficiencies are a major setback. The SDGs include targets for quality education, clean water, and affordable energy—areas where aid and investment are critical. Without effective implementation, progress remains stalled, and the gap between developed and developing nations continues to widen.

Call for Reform

Experts argue that reform is essential to ensure aid reaches those who need it most. “Transparency and accountability must be at the core of all development initiatives,” said Dr. Amina Sow, a development economist based in Senegal. “Without this, even the most well-intentioned projects will fail.”

Some countries are already taking steps to address these issues. Ghana, for example, has introduced a digital tracking system for aid distribution, improving transparency and reducing delays. Similar models could be adopted across the continent to ensure that development funds are used effectively and efficiently.

What’s Next for Montenegro and Seguro?

The Montenegrin government has announced plans to renegotiate its agreement with Seguro, demanding stricter oversight and more frequent reporting. A new review is set to begin in March 2025, with the aim of ensuring that future aid is better managed. The outcome of this review could set a precedent for how aid is handled in the region.

For African development, the lessons from Montenegro are clear: without effective governance and accountability, even the most generous aid programmes will fall short. As countries across the continent continue to seek ways to improve infrastructure, education, and healthcare, the need for reliable and transparent funding mechanisms has never been greater.

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Author
Thabo Sithole is an award-winning business and markets journalist. Holder of a BCom Economics from the University of Cape Town, he has covered the JSE, mining sector, and rand volatility for over a decade.