The U.S. government has officially dissolved the U.S. Agency for International Development (USAID), handing over all foreign aid responsibilities to the State Department in a sweeping reorganization that took effect July 1.

After months of speculation, Secretary of State Marco Rubio announced the decision on Tuesday, marking a major shift in how the U.S. engages globally, especially in Africa, where USAID has long been a key partner in development. Rubio described the move as a long-overdue correction.

“This era of government-sanctioned inefficiency has officially come to an end. Under the Trump administration, we will finally have a foreign funding mission that prioritizes national interests… USAID will no longer implement foreign assistance. Programs that align with administration policies will be handled by the State Department, with more accountability, strategy, and efficiency,” he said.

This restructuring follows President Donald Trump’s January 20 executive order, which paused foreign aid for 90 days to review its alignment with U.S. interests.

By March 10, Rubio had canceled 5,200 USAID contracts, about 83% of the agency’s portfolio, leaving roughly 1,000 projects for the State Department to oversee.

Before its closure, USAID operated in more than 100 countries with over 10,000 staff, earning recognition for its work in areas like education, health care, food security, and disaster response.

Its shutdown creates a significant gap in global development efforts, particularly across sub-Saharan Africa.

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Rubio said that some “high-priority” programs would continue under the State Department but gave no details on which regions or sectors would be targeted.

This leaves many African countries, which have depended on USAID’s support for decades, facing uncertainty about the future of key projects.

The end of USAID’s operations poses serious challenges for Africa, where the agency has been a major backer of health services, education initiatives, food security efforts, and governance reforms.

In 2024 alone, USAID delivered $6.5 billion in humanitarian assistance to Africa, a fraction of the U.S. federal budget but vital for the region.

In 2023, the U.S. directed $10.6 billion to HIV/AIDS programs and $1.5 billion to fight diseases like Ebola, malaria, and tuberculosis, most of it in Africa.

Programs such as malaria prevention in Nigeria and Uganda, agricultural resilience projects in the Sahel, and civil society support in Sudan are now at risk.

Beyond health, USAID has contributed to job creation and trade. Its East African Trade and Investment Hub, working under the African Growth and Opportunity Act, enabled $600 million in exports and helped create more than 40,000 jobs between 2014 and 2019.

In Uganda, USAID’s Feed the Future initiative reduced rural poverty by 16% between 2010 and 2013.

While U.S. officials say aid to Africa won’t stop completely, experts warn that without a solid transition plan, the State Department could struggle to maintain key programs.

The sudden closure of USAID threatens to cause funding gaps, delays, and the breakdown of critical services that relied on the agency’s experience and infrastructure.

As foreign donors like USAID scale back, the debate over whether Africa needs aid or partnership has grown more urgent.

While aid has helped address emergencies and support basic development, it can also foster dependency and often fades once funding stops.

Since 2018, foreign aid to Africa has been on the decline as donor countries shift priorities.

Germany, France, and Norway have reduced funding in recent years, and the UK cut its aid target from 0.7% to 0.5% of gross national income in 2020.

Meanwhile, African governments spend less than 10% of GDP on health, with just $4.5 billion in capital spending—far short of the $26 billion needed each year to meet growing health demands.

With foreign support shrinking, Africa urgently needs to increase domestic financing for sustainable development.

What the region increasingly requires are partnerships based on trade, investment, and shared goals.

Collaborative efforts like Feed the Future and the East African Trade Hub have shown how partnerships can drive exports, create jobs, and reduce poverty.

This call for a shift from aid to partnership was echoed at the recent U.S.-Africa Business Summit in Luanda, where African leaders urged the U.S. to channel investments toward human capital and infrastructure.

Angolan President João Lourenço used the summit to call for a new era in U.S.-Africa relations, urging a move away from aid dependency toward partnerships grounded in investment, innovation, and mutual respect.

“It is time to replace the logic of aid with the logic of ambition and private investment,” he said.

“It is time to see Africa as a credible partner rich in potential, in need of financial capital and know-how, and eager to join forces for mutual benefit.”

Rather than charity, Africa needs cooperation that strengthens its institutions and economies.

The future lies not in more aid, but in partnerships that deliver mutual gains and lasting impact.

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