For decades, foreign aid has played a crucial role in Africa’s development. However, the suspension of funding from the United States Agency for International Development (USAID), which began on January 20, 2025, under the Trump administration, has sparked a wave of innovation and self-reliance across the African continent.
See also: U.S. foreign aid freeze threatens critical programs in Africa
This unprecedented funding freeze, which resulted in the cancellation of approximately 90% of USAID’s 6,300 global projects, has caused significant disruptions in the region, particularly in sub-Saharan Africa, which has historically been dependent on USAID for vital programs in health, food security, and public safety.
Shifting towards self-sufficiency
In 2023 alone, USAID allocated US$12.1 billion to Africa, funding crucial initiatives such as the U.S. President’s Emergency Plan for AIDS Relief which is a cornerstone in the fight against HIV/AIDS. The unexpected disruption to these programs is threatening years of progress and putting millions of lives at risk.
Despite the challenges, African leaders and development organizations have seized the moment to reduce dependency on foreign aid and develop in-house solutions to pressing issues.
Africa CDC takes the lead with the African Epidemic Fund
To counteract the funding crisis, the Africa Centres for Disease Control and Prevention (Africa CDC) has launched The African Epidemic Fund, a groundbreaking initiative designed to provide fast and flexible funding to African nations to enable them to respond efficiently to disease outbreaks and improve their health security systems.
“This fund allows us to receive support without limitations or bureaucratic hurdles, helping African countries to prepare for and address outbreaks,” explained Dr. Jean Kaseya, the Director General of Africa CDC, at the fund’s launch.
Reflecting on the consequences of funding interruptions, Dr. Kaseya expressed his personal concerns:
“To be honest, I was on edge when the US paused its [Marburg virus] response in Tanzania” and he went on to highlight the urgent need for Africa-developed solutions in health security.
Ethiopia
Having the second largest USAID portfolio in Africa after Egypt, Ethiopia has taken a bold step by dedicating approximately 4.6% of its 2024/2025 federal budget to healthcare, demonstrating its strong commitment to domestic investment in public health.
Dr. Alemayehu Kebede, a public health expert based in Addis Ababa, pointed out the need for a shift in mindset:
“This is a vital moment for African countries to show their dedication to self-reliance and sustainable development. While USAID support has been critical, it is important for governments to boost their own investments in essential sectors such as health, education, and agriculture to ensure lasting progress.”
In 2023, the agency provided over US$897 million in humanitarian aid to Ethiopia, subsequently increasing this by US$331 million to deal with conflict-driven displacement, devastating droughts and floods caused by climate change, and widespread food insecurity. The country is now set to mobilize internal and alternative funding sources.
Uganda seeks alternative funding for critical health services
In Uganda, the withdrawal of USAID funding has created a US$128 million budget gap in HIV/AIDS interventions and other critical healthcare services.
Prime Minister Robinah Nabbanja announced that the government is preparing a Cabinet memorandum to explore alternative funding options to address the shortfall.
“The nation is conducting a thorough review of its programs to pinpoint and prioritize critical areas that need immediate attention,” the Prime Minister stated in a telephone interview with DevelopmentAid.
Nigeria secures World Bank loans for healthcare reforms
Nigeria is another large aid recipient with USAID contributing US$2.8 billion for health initiatives from 2022 to 2024.
To compensate for this funding gap, the Federal Executive Council has approved US$1.07 billion for healthcare reforms through the Human Capital Opportunities for Prosperity and Equity (HOPE) program. In addition, Finance Minister Wale Edun has announced that the World Bank’s concessional financing arm, the International Development Association, has proposed two concessional loans of US$500 million each to support these vital healthcare initiatives.
See also: Kenya’s 2024 humanitarian aid landscape: Impact of US 90-day aid suspension
South Africa launches “Close the Gap” campaign to tackle HIV/AIDS
With over 7.8 million people living with HIV in the country, South Africa has launched the “Close the Gap” campaign aimed at expanding access to treatment and ultimately eliminating HIV/AIDS as a public health threat by 2030. The campaign seeks to provide life-saving antiretroviral therapy to an additional 1.1 million individuals by 2025.
At the campaign launch, Health Minister Aaron Motsoaledi declared:
“AIDS should not be seen as a permanent condition. Our goal is to eradicate it and we have the power to do so.”
Rwandan president advocates for reduced dependency on foreign aid
While many African nations are actively seeking alternative funding sources to bridge the gap left by the USAID aid freeze, Rwandan President Paul Kagame has adopted a more critical stance on foreign aid.
In a recent interview with American blogger and social media influencer, Mario Nawfal, Kagame questioned the long-term effectiveness of foreign aid, claiming that it often acts as a controlling mechanism, reinforcing dependency instead of promoting sustainable progress.
“Foreign aid often acts as a tool of control, hindering sustainable growth in developing nations.” he said.
President Kagame’s remarks resonate with a growing number of African leaders and scholars who advocate for a move away from reliance on external assistance, urging the continent to adopt approaches that foster self-sufficiency and economic autonomy.
Experts weigh in: A catalyst for change?
The USAID funding freeze has prompted heated debates and a reassessment of aid dependency across Africa.
Robert Kirenga, the Executive Director of the National Coalition of Human Rights Defenders Uganda sees the crisis as a catalyst for transformation.
“This situation has forced us to re-evaluate our reliance on external funding and explore more sustainable, locally driven solutions.”
Peter Magelah, Executive Director of the Development Network of Indigenous Voluntary Associations), echoed this by saying:
“African governments need to be more proactive in negotiating aid agreements that align with their national priorities and promote long-term development.”
