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USAID is Finally "Dead": What’s the Implication for Africa?


This article is a follow-up to my previous piece, Trump and Musk’s America: A Billionaire-Led Revolution and Africa’s Defining Moment, where I explored the shifting dynamics of American leadership and its impact on Africa. With the increasing privatization of global influence and the decline of traditional institutions like USAID, Africa faces a critical turning point.

For decades, the United States Agency for International Development (USAID) has been a dominant force in global development, particularly in Africa. Through billions of dollars in aid, humanitarian assistance, and economic development programs, USAID has played a key role in shaping policies, funding critical infrastructure, and supporting democracy-building initiatives across the continent. However, with recent shifts in U.S. foreign policy, reduced political will, and global financial constraints, the agency is experiencing a significant decline. But what does the "death" of USAID really mean for Africa?

The Rise and Fall of USAID

USAID was founded in 1961 as part of the U.S. government’s broader Cold War strategy to counter Soviet influence by fostering economic growth and stability in developing nations. Over the decades, its role evolved from supporting infrastructure projects to funding governance reforms, health programs, education, and disaster relief. African nations became some of the biggest recipients of USAID funding, receiving billions annually for health initiatives like PEPFAR (the U.S. President’s Emergency Plan for AIDS Relief), food security programs, and democracy-strengthening efforts.

In fiscal year 2019 alone, USAID and the U.S. Department of State provided approximately $8.3 billion in assistance to 47 countries and eight regional programs in sub-Saharan Africa. Countries like Ethiopia and Kenya were among the top recipients, receiving approximately $450 million and $310 million, respectively. Health initiatives such as the President’s Malaria Initiative (PMI) had a budget of $723 million in 2017, primarily benefiting sub-Saharan African countries. More recently, in fiscal year 2024, USAID announced nearly $176 million in additional humanitarian assistance for the Sahel and Lake Chad Basin regions of West Africa.

However, USAID has also faced significant criticism. Many African leaders and scholars argue that aid dependency has stunted the continent’s economic self-reliance, discouraged local innovation, and sometimes imposed Western values that clashed with indigenous cultures. Furthermore, accusations of corruption, inefficiency, and bureaucratic waste have plagued the agency for years.

With shifting U.S. foreign policy priorities, including a stronger focus on domestic issues, military competition with China, and growing bipartisan skepticism about foreign aid, USAID has been steadily losing its influence and funding. The agency is not officially “dead,” but its decline signals a reduced role in global development, forcing African nations to rethink their economic and political strategies.

A recent notice from USAID confirms these developments. According to an official announcement, as of February 7, 2025, USAID direct hire personnel are being placed on administrative leave globally, with only mission-critical personnel remaining. Additionally, the agency is preparing a plan to terminate certain contracts and arrange for personnel to return to the United States within 30 days. This unprecedented action further highlights the agency’s diminishing role and the shifting priorities of U.S. foreign policy.

The Immediate Impact on Africa

The reduction or withdrawal of USAID funding will disrupt health and humanitarian aid. Many African countries rely on this support for crucial health initiatives, including HIV/AIDS treatment, maternal health programs, and malaria prevention. The sudden loss of such funding could leave millions vulnerable, particularly in countries like Kenya, Uganda, and Nigeria, where U.S. aid plays a central role in public health systems.

Economic uncertainty is another concern. USAID has supported microfinance initiatives, agricultural programs, and job creation efforts. Without these funds, some businesses and startups that depended on USAID-backed programs may struggle, leading to potential economic slowdowns, especially in rural areas.

Political and governance shifts are also expected. USAID has been a major backer of democracy-promotion initiatives, funding electoral processes, civil society organizations, and governance reforms. Its exit could create a power vacuum, allowing authoritarian-leaning governments to consolidate power without external checks. This could also open the door for increased influence from non-Western powers like China and Russia, who have been expanding their presence in Africa through infrastructure projects and military partnerships.

The Long-Term Implications for Africa

One potential silver lining is that African nations may be forced to focus more on self-reliance. Countries that have long depended on USAID funding may now need to diversify their economic models, encourage local investments, and strengthen trade relationships with other partners, such as China, the European Union, and regional economic blocs.

With USAID scaling back, emerging global powers like China, India, and Turkey are likely to fill the gap. China’s Belt and Road Initiative (BRI) has already been investing heavily in African infrastructure, offering loans and development projects. While this could accelerate Africa’s economic transformation, it also raises concerns about debt dependency and potential neocolonial influences.

The decline of USAID’s influence could be a wake-up call for African nations to rethink their development models. Instead of relying on foreign aid, governments may prioritize domestic revenue generation, industrialization, and intra-African trade through frameworks like the African Continental Free Trade Area (AfCFTA). Strengthening African-led initiatives, such as the African Development Bank and regional trade partnerships, could be a more sustainable long-term strategy.


Opportunities

As I explored in Trump and Musk’s America: A Billionaire-Led Revolution and Africa’s Defining Moment, the world is shifting from government-led international relations to a model where billionaires and corporate giants shape geopolitical influence. The decline of USAID is just another indicator that traditional power structures are fading.

While the potential "death" of USAID marks a significant shift in U.S.-Africa relations, it does not spell doom for the continent. If African nations can leverage this moment to strengthen self-sufficiency, diversify economic partnerships, and build resilient institutions, this transition could be more of an opportunity than a crisis. However, for vulnerable populations relying on USAID-supported programs, the road ahead may be uncertain, making it crucial for African leaders to act swiftly in finding sustainable alternatives.

The question remains: Will Africa seize this moment to redefine its economic and political destiny, or will it fall into new forms of dependency?


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