USAID Shuts Down After 63 Years, Leaving Africa in Crisis
In a historic and controversial decision, the United States Agency for International Development (USAID) officially ceased operations on July 1, 2025, after more than six decades of global development and humanitarian work. Established in 1961 under President John F. Kennedy, USAID had become the face of American foreign aid, particularly in Africa, where it supported programs in health, education, agriculture, infrastructure, and governance. Its closure has sent shockwaves through the development world and left many African nations scrambling to fill a massive void.
Why Was USAID Shut Down$1
The decision to shut down USAID was driven by a combination of political ideology and a scathing internal review. The Trump administration’s second term, characterized by a return to “America First” policies, focused on reducing what it described as “wasteful foreign spending.” A task force known as the Department of Government Efficiency (DOGE) was commissioned to investigate federal aid agencies. According to the report, DOGE found over $22 billion in alleged inefficiencies and widespread misuse of funds in foreign programs, labeling USAID as “bloated, politicized, and outdated.”
By mid-2025, 94% of USAID staff had been laid off, leaving fewer than 300 employees. The remaining operations were absorbed into the U.S. State Department. Secretary of State Marco Rubio stated that U.S. foreign assistance would now prioritize
strategic partnerships and trade, not handouts.
This restructuring marked a dramatic shift away from traditional humanitarian aid.
Fallout Across Africa
Nowhere is the impact of USAID’s shutdown more deeply felt than in Africa. For decades, USAID had been a primary source of funding for life-saving programs, capacity building, and economic development across the continent. Its abrupt departure has triggered widespread uncertainty and operational collapse in critical sectors.
Health Crisis Looming
One of USAID’s largest and most vital contributions was through the President’s Emergency Plan for AIDS Relief (PEPFAR), which provided antiretroviral drugs, testing kits, and community outreach in over a dozen African countries. With funding frozen, healthcare workers in Uganda, South Africa, Nigeria, and Kenya report severe shortages of medications. Experts warn that without emergency interventions, up to 630,000 preventable deaths per year from HIV/AIDS could occur globally.
Similarly, the President’s Malaria Initiative has had its funding slashed by nearly 50%, threatening bed net distributions, diagnostics, and treatment programs in countries like Democratic Republic of Congo, Mozambique, and Ghana. Health officials fear a surge in malaria cases and child mortality rates.
Humanitarian Programs in Freefall
In Sudan, where conflict and displacement have ravaged the population, USAID was the lead funder of mobile clinics and food assistance programs. Since April 2025, doctors have reported that children are dying of malnutrition and treatable diseases due to halted services. In Chad, USAID-funded midwifery programs have been suspended, raising concerns about maternal and infant mortality.
Food security initiatives, water and sanitation projects, and support for gender-based violence survivors have all come to a standstill across dozens of African countries.
Education and Economic Development Stalled
USAID-funded university partnerships, research grants, and entrepreneurship programs such as Development Innovation Ventures (DIV) were building long-term capacity in agriculture, climate resilience, and tech startups. With the agency’s closure, hundreds of African students have lost scholarships, and local incubators in Kenya, Ghana, and Rwanda face collapse.
In addition, rural electrification, road infrastructure, and clean water projects many of which were mid-construction are now abandoned, leaving millions without access to basic services.
National Responses and Challenges
Several African governments have taken emergency steps to mitigate the fallout:
Ghana has set up a special committee led by Finance Minister Cassiel Ato Forson to locate alternative funding for an estimated $78 million shortfall in public health programs.
Nigeria has announced a $1 billion emergency healthcare package to offset the loss of PEPFAR support.
Kenya is redirecting national resources toward sustaining HIV clinics and maternal health units.
South Africa is appealing to BRICS allies and private donors to bridge the funding gap in rural provinces.
However, experts caution that few African countries have the fiscal capacity to independently sustain the level of investment USAID was providing. The risk of a development backslide is significant, particularly in fragile states where services depend heavily on foreign aid.
Global Reactions and Geopolitical Concerns
The move has drawn sharp criticism from former U.S. presidents and international leaders. George W. Bush, whose administration launched PEPFAR, called the shutdown “a colossal mistake.” Barack Obama, Bono, and even some Republican lawmakers have echoed similar concerns, arguing that soft power and humanitarian diplomacy are vital tools in maintaining global stability.
There are also concerns that China and Russia may step into the void left by the U.S., using infrastructure loans and security pacts to expand influence across the continent albeit without the same focus on human development.
The Road Ahead: What Comes Next$2
The end of USAID marks a turning point in the history of U.S. foreign assistance. While the Biden administration may attempt to reinstate some form of development aid in the future, the current trajectory suggests a long and difficult road for African countries that relied on consistent and substantial U.S. support.
In the absence of USAID, African governments, regional bodies like the African Union and AfCFTA, and international organizations such as the UN, World Bank, and EU may need to forge new alliances and funding mechanisms. Meanwhile, civil society and the private sector will have to play a much larger role in maintaining services for millions of vulnerable people.
Conclusion
The closure of USAID after 63 years has ushered in a new era of uncertainty for Africa. From life-saving health programs to infrastructure and education, the void left behind is immense. Without swift, coordinated action from both local governments and the international community, the consequences could be devastating. The world is now watching to see who will step in, and how millions of lives will be affected in the months and years to come.