Jump to navigation

Rubio deals hammer blow to US aid

An executive order from President imposes a 90-day freeze on most foreign funding – except military aid

Within hours of entering the White House, President Donald Trump issued an executive order for a three-month freeze on all foreign aid. This move seemed certain to result in major cuts to the US$68 billion annual US foreign aid budget and the $8bn allocated by the Biden administration in aid for sub-Saharan Africa in 2024.

However, officials say privately that the directive issued by Secretary of State Marco Rubio, interpreting Trump’s order, is far more radical than they had anticipated (AC Vol 66 No 2, America first but Africa where?).

Rubio issued a ‘stop-work’ memorandum to all US agencies on 24 January and its scope applies both to ongoing and future projects. The only exceptions are military aid to Israel and Egypt, and US contributions to emergency food assistance.

‘No new funds shall be obligated for new awards or extensions of existing awards until each proposed new award or extension has been reviewed and approved,’ says the memo to staff.

Senior diplomats issued the ‘stop-work’ instructions to embassy and local agency staff on 25 January, Africa Confidential has learned.

That may have long-lasting implications for US aid programmes even if most initiatives are unfrozen in April and major job cuts, particularly in US Agency for International Development, are now expected.

Elsewhere, the US withdrawal from the World Health Organization, which leaves a $1.2bn budget hole, is expected to have an immediate impact on the response to the mpox pandemic in central Africa.

While Africa Centers for Disease Control and Prevention officials briefed last week that they do not expect their own programmes to be significantly affected, Africa CDC’s Ngashi Ngongo told journalists that the loss of US funding means that ‘it is time for some of the African member states to think the financing of public health’.



Related Articles

America first but Africa where?

Deal-making diplomacy and geopolitical rivalry with China will dominate Washington’s policy in Africa

Many African leaders believe they can do business with new US President Donald Trump despite his previous lack of interest in the continent. A chorus of congratulatory messages...


Redback takes on greenback

African countries will be among the first to adopt the Chinese renminbi as a reserve currency

South Africa, China’s largest trading partner on the continent, looks set to be the first African nation to join the 20 other countries and regions that have swapped...


Pandemic hit to growth and trade fuels instability

Recoveries in Africa and South Asia are lagging behind industrial economies in what the IMF calls a dangerous divergence

Several African economies could still take years to recover from the loss in GDP suffered from the Covid-19 pandemic in 2020, according to the latest World Bank data.

READ FOR FREE

An electric strategy

India is launching its own mini-offensive in the electricity sector, following Chinese-style financing and contracting practices. On 29 October, New Delhi announced a new US$263 million credit line...