This study attempts to assess the effectiveness of foreign aid to the economic growth in developing countries, by analyzing relationship between external flows especially foreign aid and growth with taking into account political variable as democracy and economic policy. The main objective of this paper is to examine the impact of foreign aid to African countries over the period 1980-2016 by using panel data fixed effect analysis. The basic assumption is that foreign aid promotes growth, especially in the presence of sound economic policies. Results provide support for the positive impact of ODA flows on growth, in the contrary the study did not reach to significant evidence for economic policy on the effectiveness of foreign aid through measure impact of interactive variables (aid* economic policy) on economic growth.