Public Management

U.S. Considers Shutting Down USAID, Raising Concerns for Africa

U.S. Considers Shutting Down USAID, Raising Concerns for Africa
Tuesday, 04 February 2025 16:50

U.S. development aid is facing an uncertain future. At the center of the storm is USAID, a key player in global assistance programs, now at risk of being dismantled. The stakes are high, especially for Africa.

The United States is considering shutting down the U.S. Agency for International Development (USAID), according to a Feb. 3 statement by Elon Musk, who oversees government efficiency in the Trump administration.

The announcement comes as part of a broader effort to restructure U.S. foreign aid, following an executive order signed on January 25 dfthat freezes foreign assistance for 90 days—except for aid to Israel, Egypt, and emergency food relief.

Musk did not provide details on how the potential closure of USAID would take place but noted that it had the approval of President Donald Trump. His statement coincides with another major development: Secretary of State Marco Rubio announced on Monday that he would temporarily take charge of USAID to address what he called "internal insubordination" that was preventing the administration from properly reviewing the agency. According to Rubio, USAID has been operating as an "independent non-governmental entity" and has, in many cases, been involved in programs that contradict the administration’s national strategy.

A Direct Impact on Africa

The possible shutdown of USAID is causing significant concern, particularly in Africa, where the agency plays a crucial role in funding essential programs in health, food security, education, and governance. The importance of this aid is evident in the commitments made in the months leading up to Trump’s election.

In August 2024, USAID announced $424 million in humanitarian assistance and support for vaccine distribution to combat mpox. During a visit to Angola in December 2024, former President Joe Biden pledged over $1 billion in humanitarian aid to address food insecurity in 31 African countries, with $823 million channeled through USAID. That same month, the agency launched a solar energy hub in Madagascar benefiting 1,200 households and allocated nearly $29 million to improve food security in Somalia.

It remains uncertain whether USAID will actually be shut down, and the coming weeks will be critical in determining the agency’s fate. However, even without a final decision, the potential consequences for Africa are already significant.

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Telecom operator launches KES40 billion medium-term bond program First KES15 billion tranche offered at a fixed 10.40% rate for five...
16 of Nigeria’s 36 banks have met new capital requirements by Nov. 2025 Recapitalization aims to boost sector strength before March 2026...
Yvon Sana Bangui elected president of the Association of African Central Banks One-year term includes steering governors’ meetings and advancing...
Access Holdings to seek shareholder approval for ₦40B private placement on Dec 18 Deal aims to boost capital base amid new CBN recapitalization rules...
Most Read
01

Vodacom Tanzania launches M-Pesa Global Payments, enabling seamless international transactions thr...

Tanzania’s Mobile Money Goes Global: Vodacom Partners with Visa, Alipay, and MTN
02

S&P upgrades Zambia to CCC+ as debt talks advance and copper output rebounds. About 94% of $...

S&P Raises Zambia’s Foreign-Currency Rating to CCC+
03

Anthropic, Rwanda’s government, and ALX launched Chidi, an AI mentor built on Claude. It wi...

Anthropic Partners with Rwanda, ALX to Deploy Claude-Powered AI Learning Companion Across Africa
04

Kossi Ténou succeeds Badanam Patoki as president of the AMF-UMOA. Ténou brings over 20 years of e...

Togo’s Kossi Ténou Appointed President of AMF-UMOA
05

Senegal, BOAD launch Fovas to monetize public infrastructure assets Fund aims to boost financing...

Senegal, West African Development Bank Create Fund to Monetize Public Assets
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.