Ghana Scrambles to Cover $156 Million Shortfall After US Aid Freeze

Sophia Steele

Sophia Steele

February 12, 2025 · 3 min read
Ghana Scrambles to Cover $156 Million Shortfall After US Aid Freeze

Ghana's President, John Dramani Mahama, has instructed Finance Minister Cassiel Ato Forson to act swiftly to fill a $156 million funding gap after the United States cut off aid from USAID. This move comes in response to President Donald Trump's executive order slashing nearly all U.S. foreign aid, which has sparked concerns about the impact on African countries that rely heavily on American humanitarian assistance.

Last year, the U.S. provided over $6.5 billion in humanitarian assistance to sub-Saharan Africa, making it a significant contributor to the region's development. The suspension of USAID funding is expected to hit key sectors in Ghana, including healthcare, education, and agriculture. In 2024, the agency committed $25 million over five years to improve healthcare services, but with the aid now on hold, hospitals and clinics may struggle to access essential resources.

The education sector, which receives around $40 million annually from USAID for teacher training, literacy programs, and school infrastructure, could also suffer, leaving students and teachers in limbo. Furthermore, Ghana's farmers, who rely on USAID's support for better farming techniques, food supply chains, and overall food security, may face greater hardships, potentially worsening poverty in rural communities.

The impact of the aid freeze is not limited to Ghana. Other African countries are already feeling the strain, with the Department of Government Efficiency (DOGE), a Trump-era initiative led by Elon Musk, blocking funding for Liberia and scrapping a $17 million project meant to help with tax policy. Additionally, Trump has frozen aid to South Africa over its controversial land expropriation law, which allows the government to reclaim land in the public interest without compensation.

The withdrawal of vital U.S. support is expected to trigger numerous challenges, including worsening existing conflicts, deepening humanitarian crises, and heightening instability across Africa. Countries like South Sudan, the Democratic Republic of Congo, and Somalia, already grappling with famine, displacement, and internal conflict, could face even greater hardships as aid dries up. Other fragile regions could also see escalating tensions as essential funding disappears.

With Africa on the frontlines of these drastic cuts, leaders are scrambling to mitigate the fallout, even as the long-term consequences remain uncertain. The situation highlights the need for African nations to diversify their funding sources and reduce their reliance on foreign aid. As the full impact of the cuts continues to unfold, it remains to be seen how Ghana and other affected countries will adapt to this new reality.

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