US Foreign Aid to Africa: Can NGOs Survive Without It?
Mar 30 2025

By Oluwaseun Taiwo

For decades, US foreign aid has been a lifeline for African NGOs. Through agencies like USAID, American support has fuelled countless initiatives tackling poverty, disease, conflict, and governance failures. In nations such as South Sudan, Somalia, Liberia, and Ethiopia, US-backed NGOs have served as first responders, providing life-saving aid in crisis zones.

However, this reliance has come at a cost. Many African NGOs have become extensions of donor priorities rather than autonomous organisations rooted in local needs. The aid structure often prioritises Western expertise and management, leaving African partners as implementers rather than leaders in development efforts. This dynamic has entrenched a form of neocolonialism where foreign experts claim authorship of reports and strategies derived from the on-the-groundwork of local NGOs.

The second presidency of Donald Trump marked a significant shift in US foreign aid policy. Trump’s order to freeze USAID funding led to mass layoffs across global aid organizations, including Mercy Corps, the International Organization for Migration, and several African health programs. Thousands of local health workers lost their jobs, and critical and major programs were forced to shut down.

This disruption exposed the fragility of Africa’s NGO sector particularly those reliant on US funding. While the cuts were widely criticized, they also ignited a conversation about the need for African NGOs to rethink their financial models. The sudden loss of US aid shows the urgent need for African NGOs to localize shifting from foreign donor dependence to sustainable, locally driven funding models. Localization is more than a financial shift; it’s a call for African NGOs to reclaim their autonomy and prioritize grassroots needs over donor agendas.

Regional bodies like the African Union (AU) and the Economic Community of West African States (ECOWAS) can lead this charge by strengthening their financial independence and supporting local NGOs directly. This includes establishing African-led funding mechanisms and mobilizing domestic resources, from private sector contributions to diaspora remittances.

African governments also have a critical role to play. Enabling policies that promote local philanthropy, public-private partnerships, and corporate social responsibility could unlock new funding streams. Governments must resist the temptation to over-regulate NGOs, a common tactic used to control dissent and instead create an enabling environment where civil society can thrive.

Beyond traditional funding sources, African NGOs must explore innovative financial models to ensure long-term resilience. Crowdfunding platforms like Kenya’s M-Changa have demonstrated that grassroots fundraising can be effective. Social enterprises and revenue-generating initiatives can provide alternative income streams, reducing reliance on fluctuating donor priorities.

Diaspora bonds inspired by Ethiopia and Israel’s success could also be a powerful tool to tap into the financial power of African communities abroad. By directing remittances toward development projects, African countries can turn the continent’s vast diaspora into a reliable funding source for local NGOs.

The end of foreign aid should not be seen as a death sentence for African NGOs but as a wake-up call to embrace innovation, collaboration, and self-reliance. Stronger regional networks, increased public-private partnerships, and bold financial strategies can transform African NGOs from aid beneficiaries into drivers of sustainable development.

One of the most immediate and severe impacts of the USAID shutdown is on healthcare systems. USAID funds critical programs such as the President’s Emergency Plan for AIDS Relief (PEPFAR), malaria control initiatives, maternal and child health services, and vaccination campaigns. Countries like Nigeria, Kenya, and South Africa, which rely on these programs to combat HIV/AIDS and malaria, face potential medicine shortages, interrupted services, and increased mortality rates.

For example, in Mozambique, USAID supports over 2 million people living with HIV. A prolonged shutdown could hinder the supply chain of antiretroviral drugs, leaving vulnerable populations unprotected. Similarly, in Malawi and Uganda, where malaria remains a leading cause of death, USAID-backed mosquito net distributions and prevention programs are at risk.

Non-governmental organizations (NGOs) many of which depend on USAID funding are already feeling the squeeze. From food security programs to emergency responses during natural disasters and conflicts, NGOs play an essential role in bridging the gap between government services and communities. The shutdown forces many to scale back operations or shut down entirely, leaving millions without essential services.

In regions like the Sahel, where USAID has supported resilience programs to mitigate the effects of climate change and food insecurity, the shutdown could reverse progress, exacerbating hunger, displacement, and instability. Programs targeting gender-based violence, education for girls, and economic empowerment for women also face an uncertain future.

As the USAID shutdown drags on, African nations face a sobering reality: the era of unquestioned reliance on Western aid may be coming to an end. While this moment presents undeniable hardships, it also offers an opportunity for African leaders to rethink development strategies, invest in local capacity, and forge a more autonomous future.

The challenge lies in transforming this crisis into a catalyst for innovation, resilience, and long-term prosperity. Whether African nations rise to meet this challenge remains to be seen but one thing is clear: the continent’s future cannot remain at the mercy of foreign political dynamics.

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