Oxfam International warned that massive aid cuts by major donors could devastate Africa’s development as 17 OECD countries slash $31.1 billion from their 2025 budgets, with the US planning a 90% reduction and France cutting up to 40%, according to recently released report.
The cuts come as aid already fails to reach the world’s poorest countries, with only 0.06% of rich nations’ income going to African Least Developed Countries despite housing half of all people in extreme poverty. Critical sectors like education, agriculture, and social protection receive just 20% of aid while administrative costs for processing aid to Africa nearly match spending on public finance management.
Aid effectiveness has deteriorated as donor practices favor their own NGOs over local actors, with only 1.2% of humanitarian funding reaching local organizations directly in 2022. Meanwhile, 70% of climate finance comes as loans rather than grants, deepening debt burdens for countries that contribute least to global emissions. African nations need $3 trillion annually to meet climate commitments but wealthy countries pledged only $300 billion at COP29.
The aid system marginalizes women’s rights organizations, which receive just 0.4% of gender-focused aid in Africa, while budget support to African governments declined from 21% during COVID-19 to 10% by 2023. “Current donor practices deviate from long-standing global commitments for aid effectiveness,” the report states, noting how conditionalities undermine country ownership and democratic policymaking.
Oxfam found that Africa loses $88.6 billion annually through illicit financial flows – more than combined foreign investment and aid – while receiving inadequate support for domestic revenue mobilization. The organization calls for rebuilding global cooperation grounded in justice and solidarity rather than perpetuating colonial-era power imbalances.
The briefing urges wealthy nations to honor their 0.7% aid commitments, increase support to Least Developed Countries, and deliver climate finance as grants rather than loans to avoid further marginalizing Africa’s most vulnerable populations.
