Switzerland has announced its decision to end development programs in three countries, including Zambia, Albania, and Bangladesh, as part of its efforts to reduce funding for foreign aid. This move follows a decision by the Swiss parliament in December to allocate slightly less than what the government had requested for international cooperation.

The budget cuts, amounting to CHF110 million ($121 million) from the 2025 international cooperation budget and CHF321 million from the financial plan for 2026 to 2028, will impact various aspects of international cooperation, including bilateral, economic, and thematic cooperation, as well as multilateral organizations. The Swiss Agency for Development and Cooperation (SDC) will conclude its bilateral development programs in the three countries by the end of 2028.

The cuts reflect a shift in Switzerland's approach to foreign aid, aligning with the country's efforts to optimize its international cooperation investments. However, humanitarian aid, peacebuilding efforts, and support for Ukraine will remain unaffected by the budget cuts.

Zambia, in particular, has been a significant recipient of Swiss aid, with approximately CHF 3.5 million contributed annually to around a dozen projects. In 2023, Zambia and Switzerland signed a comprehensive cooperation agreement, including humanitarian aid. The bilateral Swiss Cooperation Programme, worth USD 50 million, focuses on crucial areas like food security, healthcare, social protection, climate change, and governance.

The Swiss Agency for Development and Cooperation (SDC) is also active in Zambia, operating a regional program for Southern Africa, with Zambia and Zimbabwe being priority countries under the SDC's new program launched in 2023. Despite the significant presence of Swiss companies in Zambia's copper sector, the bilateral trade relationship between Switzerland and Zambia is relatively limited, with Switzerland mainly importing precious metals and agricultural products from Zambia, while exporting pharmaceuticals and machinery.

This move by Switzerland follows a similar decision by the United States to reevaluate its foreign aid investments. The implications of these budget cuts will be closely watched, as they may have far-reaching consequences for international cooperation and development efforts in the affected countries.

As Switzerland adjusts its approach to foreign aid, it remains to be seen how this shift will impact its relationships with countries like Zambia, where significant investments have been made in development programs. One thing is clear, however: the changing landscape of foreign aid investments will require countries and organizations to adapt and find new ways to collaborate and support development efforts.