The End of USAID: Ramifications for Ghana and the World

Verfasst von Julian

Since July 1, it is now official: the US development aid agency USAID has been dissolved. The end of the aid organization, which had supported projects all over the world for decades, is likely to have serious repercussions, especially in the poorest countries. Ghana is also directly affected.

Founded in 1961 under the directive of President John F. Kennedy, the United States Agency for International Development (USAID) developed into one of the most important donors in global development aid over the following decades. With a budget of around 40 billion US dollars in 2023, the agency supported a wide variety of projects, such as those to predict future famines, education programs or the fight against AIDS, malaria or respiratory diseases. However, since Donald Trump returned to the White House, USAID has come under increasing pressure; after the majority of projects were frozen in February, the aid agency has been completely defunct since the beginning of July 2025. What remains of it will be incorporated into the State Department: Development aid should now be guided by the interests of US foreign policy. Ultimately, this means nothing other than a drastic cutback: 83% of all programs were discontinued and 94% of employees were laid off.

These figures ultimately conceal serious consequences for the global population. People in developing countries are disproportionately affected; a study in the journal The Lancet even estimates 14 million additional deaths as a result of the resolution, five million of them children under the age of five. Africa, where the USA was the largest donor, is particularly affected. In Kenya, HIV clinics have had to be closed, in countries such as the Democratic Republic of Congo, basic immunization against tuberculosis can only be continued to a limited extent, and malaria prevention cannot be maintained to the same extent.

These effects are also being felt in Ghana. This is evident in the health sector, among others: 78 million US dollars for the fight against HIV, malaria and malnutrition were already at risk in February after the first cuts, as outlined by Ghanaian President John Dramani Mahama before parliament. The northern and north-eastern regions, where Saboba is also located, are particularly affected; logistics and the distribution of medicines in particular are at risk there.

It is precisely small and local organizations that are suffering from the sudden changes: In a survey of Ghanaian civil society organizations (CSOs), more than half stated that they were affected by the cuts. In addition to health and education, these organizations also work in areas such as agriculture, security and water supply. Ultimately, it is also jobs that are being lost: 320 redundancies were reported. This data also confirms that the north of Ghana is increasingly affected; the loss of this financial support could widen the development gap between the north and the south.

The extent to which these losses can be compensated, whether at national or international level, remains unclear. In the United States at least, there is no sign of a policy change in the near future: instead, other aid organizations such as the US African Development Foundation have come under scrutiny alongside USAID. The planned dissolution of this agency, which primarily supports small businesses in Africa, has been held up for the moment by a court order. It is also questionable whether other donors can at least dampen the effects. Germany, which is now the largest donor in many areas, has also cut the sums for development aid in the next budget.

Sources

Julian
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