USAID suspends 83% of programmes, triggers economic uncertainty in Africa

On March 10, U.S. Secretary of State Marco Rubio announced the cancellation of 5,200 contracts that failed to align with U.S. interests, costing tens of billions of dollars.

This decision follows a broader hold on USAID projects shortly after President Trump’s second term began, leaving many African nations, reliant on U.S. aid, in a precarious position.

"After a six-week review, we are officially cancelling 83% of the programs at USAID," Rubio said.

He said that the remaining 18% of contracts would be more effectively managed under the State Department once a review by the Department of Government Efficiency (DOGE) concluded.

This substantial cut in funding is anticipated to cause severe healthcare deficits in Zimbabwe, where USAID played a vital role by funding salaries for medical staff and enhancing healthcare infrastructure, notably in rural regions.

Zimbabwean officials assert that they have alternative strategies in place to cope with the funding loss, urging citizens not to panic. Nonetheless, critics express doubt regarding the government's ability to compensate for the diminished support from USAID.

The situation is similarly dire in South Africa, where clinics dispensing antiretroviral drugs have shut down, critically affecting thousands of HIV-positive patients.

Moreover, the crisis is exacerbated by the withdrawal of UK Aid and other European agencies, which previously provided essential support for development and humanitarian efforts across Africa.

In the wake of U.S. funding cuts, affected governments must now either increase domestic funding or seek alternative international donors to bridge the gap. The long-term repercussions on vulnerable populations in Africa are unclear, but concerns about deteriorating healthcare and economic instability are prevalent.