In a surprise move, US President Donald Trump signed an executive order halting USAID disbursements for 90 days, sparking concerns about the impact on African countries already grappling with severe humanitarian crises. However, Caitlin Burton, Senior Vice President of Zipline, has offered a contrarian view, suggesting that Africa may not be as dependent on US funding as previously thought.
The halt in USAID funding was expected to have far-reaching consequences, particularly for countries like South Sudan, DR Congo, and Somalia, which are already dealing with severe humanitarian crises, including famine and displacement. According to the Food and Agricultural Organization (FAO), almost 282 million people in Africa (20% of the population) were undernourished in 2022, up 57 million from the COVID-19 pandemic. Approximately 868 million people were affected by moderate to severe food insecurity, with more than one-third (342 million) suffering from extreme hunger.
Initial reports suggested that the funding cut would have devastating effects on various sectors, including health, agriculture, and education. Several Non-Governmental Organizations (NGOs) working in these sectors across Africa were shut down, and a report showed that Uganda was facing a 300 billion shillings ($82 million) funding deficit in its HIV relief programs. The Nigerian government also announced plans to take over the welfare of 28,000 staff laid off due to the Trump administration's suspension of funding to USAID.
However, other reports have emerged, suggesting that Africa may not have missed the USAID funds as much as initially thought. In Nigeria, elders from the northeast region called for USAID and other foreign donor organizations to leave the region, citing allegations of terrorism financing. Lawmakers in Nigeria also raised concerns about transparency, accountability, and the effectiveness of non-profit organizations in implementing development programs funded by foreign donors.
Furthermore, the National Agency for Food and Drug Administration and Control (NAFDAC) in Nigeria discovered USAID-funded medications and other expired drugs during a raid in Lagos State, Nigeria's commercial hub. The agency seized 87 truckloads of banned, expired, and substandard medicinal products, including USAID- and UNFPA-donated antiretroviral drugs, and male and female condoms, among others. This indicated that aid materials had been improperly stored or deliberately resold, defeating the entire purpose of disbursing aid.
Caitlin Burton, in an exclusive interview with Business Insider Africa, highlighted the inefficiencies in USAID's projects, stating that Africa was receiving less aid than had been allocated, partly due to the bureaucracies that hamper the delivery of aid materials. "US-supported programs, they often cost 2 or 3 times or even 10 times what they should have cost to deliver just to feed the cottage industry of aid contractors around D.C, so the amount Africa is losing in terms of material support is actually lower than the dollar figure," she said.
Burton also contended that USAID's projects frequently lack true efficacy, and that with a fraction of what was being spent by the U.S. government previously, it is possible to keep nutrition products, HIV, and malaria medicine flowing into humanitarian settings. She noted that Zipline, the world's largest autonomous instant logistics and delivery system, has seen smoother transitions of medical materials in the supply chain as opposed to the clunky movement with the former system.
In conclusion, the suspension of USAID funding to Africa has sparked a debate about the true impact of U.S. aid on the continent. While the immediate consequences included the shutdown of NGOs and funding gaps in critical sectors, evidence suggests that Africa may not be as dependent on U.S. aid as once believed. As Burton noted, "I think many of the programs weren’t actually that effective, so what Africa is losing in terms of potential impact is also not as significant as it appears on paper."