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Recent developments from the United States have raised serious concerns about the future of development assistance in Ghana. Following an executive order signed by President Donald Trump to halt foreign aid funding for 90 days, USAID has suspended its operations worldwide. This decision, coupled with comments from key figures like Elon Musk advocating for the agency’s complete shutdown, has left Ghana and other beneficiary nations grappling with potential impacts.
DUBAWA has decided to explore the issues surrounding Donald Trump and USAID and how they could affect Ghana.
The United States Agency for International Development (USAID) has been a critical partner in Ghana’s development. USAID provided Ghana with approximately $150 million in bilateral development assistance in the past year.
However, Trump’s executive order aims to align foreign aid programs with his “America First” policy, resulting in a freeze on funding and operational activities.
The suspension includes directives for all USAID staff to be placed on administrative leave by February 7, 2025, and for overseas workers to return to the U.S. within 30 days. While some core functions may continue, most of USAID’s global programs, including those in Ghana, are on hold.
Implications for Ghana
Health Sector
The agency also launched a five-year partnership with the Ghana Health Service in 2024, committing $25 million to enhance health service delivery. With this suspension, an abrupt shortfall in much-needed resources is unavoidable. A letter from the Ghana Health Service (GHS) highlights immediate concerns about the suspension’s impact on supply chain activities. For example:
- Stockouts of Critical Health Commodities: USAID-funded Last Mile Distribution (LMD) ensures the availability of essential medications and supplies. The suspension threatens to disrupt healthcare delivery, particularly in northern regions such as the North East, Savannah, and Northern.
- Procurement System Breakdown: The halted funding affects SkyNet Express, a logistics company responsible for transporting health commodities. This could lead to significant delays in the delivery of lifesaving items.
- Public Health Programs: USAID’s involvement in maternal health, immunisations, HIV/AIDS, and malaria control has been integral to Ghana’s healthcare system. A funding freeze jeopardises these programs, raising the risk of outbreaks and reducing access to services.
Dr Hayford Ayerakwa, a development economist, stressed that USAID’s $50-$70 million annual commitment to health alone underscores the gravity of the situation. The suspension could severely impact immunisation efforts, infectious disease control, and access to medical supplies without immediate alternatives.
Education
USAID’s contributions to Ghana’s education sector, estimated at $40 million annually, support initiatives like teacher training, literacy programs, and infrastructure development. Programmes addressing out-of-school children and school feeding schemes are now at risk. Dr Ayerakwa emphasised that these interventions have improved enrolment and literacy rates.
Agriculture
Ghana’s agriculture sector, which receives millions annually from USAID, is particularly vulnerable. The agency has supported improved farming practices, value chain development, and food security initiatives. Without this support, rural livelihoods could suffer, potentially increasing poverty.
Apart from government institutions, Civil Society Organisations have benefited immensely from the activities of USAID. For instance, the development programme of the Centre for Journalism Innovation and Development (CJID) entered into a $400,000 partnership programme with the USAID that would enhance its work on the Powering Just Energy Transition Minerals Challenge (JET Minerals Challenge). Part of the challenge was to train and build the capacities of journalists in Ghana, Nigeria, and other African countries. The new development with the USAID may affect this programme and other projects in which other CSOs may be involved.
Calls for Action
Short-term Mitigation
The Ghana Health Service has initiated discussions with stakeholders to explore immediate solutions. These include:
- Strengthening Local Supply Chains: Identifying alternative logistics providers to maintain the flow of health commodities.
- Collaborative efforts: engaging development partners to fill funding gaps temporarily.
Long-term Solutions
Joana Chemel, a consultant on youth development and USAID projects, emphasised the need for Ghana to adopt a “Ghana Beyond Aid” agenda. She highlighted the importance of resource mobilisation and reducing dependency on foreign aid.
“Already, NGOs that were heavily relying on USAID funding for WASH programmes, maternal health programmes, and child nutrition programmes, as well as agriculture and food security programs, have all been put on hold. So immediately, that also says a lot about the work that was already happening on the ground. And it also extends to inclusive projects that include disability and inclusion projects that are all being affected. So all country programs currently are on hold, including the project I was working on, and we will get to know later what happens,” she told DUBAWA.
Similarly, Dr Ayerakwa called for national consensus on homegrown initiatives to sustain development efforts.
What’s Next?
The Trump administration’s decision has reignited debates about Africa’s over-reliance on external funding. While the 90-day review period provides some hope for a reversal, the uncertainty underscores the importance of self-reliance.
In the meantime, Ghana’s government and civil society must act swiftly to mitigate the immediate effects of the suspension. As stakeholders meet to address these challenges, the broader lesson remains clear: sustainable development requires local solutions and reduced dependency on unpredictable external forces.
