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This paper analyzes the domestic and external factors that impede effective use of Official Development Assistance (ODA) for Sub-Saharan Africa (SSA). It argues that while foreign aid, especially ODA to Africa has significantly increased over the years, SSA has become more dependent on foreign assistance, and economically and politically weaker relative to other less developed states in the international system. Furthermore, it argues that reversing the trend of increasing aid and declining economic productivity in Africa will require that foreign aid, except for direct humanitarian assistance in crisis situations, be completely stopped. The paper concludes with policy directions for reforming the African state, and building strong and sustainable political, economic and socio-cultural institutions for promoting effective ODA for SSA.