The African continent is currently the scene of many international and regional conflicts due to its security and strategic importance to the whole world. The Horn of Africa comes on top of other countries in the continent as vital in modern geopolitics. Due to its strategic locations, sea outlets, wealth, and natural resources, the Horn of Africa is the desired target for many major powers and many international and regional parties. Especially after the liberation of this region from its old geographical concept limited to the geography of Somalia alone, to expand to include Eritrea, Ethiopia and Djibouti, Kenya and Sudan, and most of East Africa and the Lakes Region, in what is recently known as “The Greater Horn of Africa.”

Given the geostrategic importance of the Horn of Africa, while evoking its chronic economic suffering over the past several centuries until now, and the furious international and regional conflict towards it, this study saw a necessity in identifying the role that economic aid may play. And that global and regional donors may play in directing and adapting the political, strategic, security, and commercial realities in contact with the Horn of Africa countries. In addition to exploring the overall adverse effects on the recipient countries and the donors, this study seeks to find whether the grants are conditioned with achieving specific purposes to the donor country.