Transparency in foreign aid is significant because it fosters accountability and trust between donor and recipient countries. Clear reporting on how aid funds are allocated and spent can ensure that resources effectively tackle challenges such as poverty and health crises. Transparency helps combat corruption by allowing stakeholders to monitor the utilization of funds, ensuring they reach intended recipients. Moreover, when aid recipients are informed of the support received, it encourages local engagement and ownership, ultimately leading to more sustainable solutions and enhancing the effectiveness of international assistance efforts.