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Kofi Kusi

A month ago

USAID CUTS: A WAKE-UP CALL FOR AFRICAN ECONOMIC INDEPENDENCE

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A month ago


Introduction The recent decision by U.S. President Donald Trump to halt USAID (United States Agency for International Development) funding to African countries has sparked a range of reactions across the continent. While some fear the immediate economic impact, Bernard Mornah, former flagbearer of the People's National Convention (PNC), has welcomed the move, arguing that it is a necessary wake-up call for African nations to become self-reliant. Speaking at the Danjuar festival in Kpikpira, he urged African leaders to seize this moment as an opportunity to break free from their historical dependency on Western aid and to harness the continent’s abundant natural resources for sustainable development.

Historical Context of USAID in Africa Since its establishment in 1961 by President John F. Kennedy, USAID has played a significant role in providing financial aid, technical assistance, and humanitarian relief to African nations. The agency has supported health initiatives, agricultural development, education programs, and democratic governance projects across the continent. However, USAID’s involvement has often been criticized for fostering a dependency culture, where African governments rely heavily on foreign assistance instead of implementing homegrown solutions.

Over the years, aid has been both a blessing and a curse. While it has provided much-needed relief in times of crisis, it has also created a system where African economies remain tethered to Western interests. Critics argue that foreign aid has often come with political and economic strings attached, limiting African countries' ability to make independent policy decisions.

Economic Implications of USAID Cuts The immediate effect of cutting USAID funding will be a significant financial gap in many African countries’ budgets, particularly in sectors like healthcare, education, and infrastructure. Programs that rely on donor support may struggle to maintain their operations, potentially affecting millions of people who benefit from USAID-funded initiatives.

However, Mornah and other proponents of economic independence argue that this should serve as a catalyst for African nations to reassess their financial models. By reducing reliance on external aid, countries can prioritize revenue generation through industrialization, intra-African trade, and better resource management. Africa is rich in natural resources, from oil and minerals to agricultural produce, yet many nations have failed to capitalize on these assets due to corruption, mismanagement, and unfavorable trade agreements with Western powers.

A Call for Economic Self-Reliance Mornah’s call for African self-reliance aligns with broader discussions among African policymakers about economic transformation. The African Union’s Agenda 2063, for instance, envisions a continent that is self-sustaining, technologically advanced, and economically robust. Key components of this vision include:

  1. Industrialization and Value Addition: African nations must shift from being mere exporters of raw materials to producers of finished goods. This will not only increase revenues but also create employment opportunities.

  2. Intra-African Trade: The African Continental Free Trade Area (AfCFTA), which came into effect in 2021, presents a unique opportunity for African countries to trade among themselves, reducing dependence on Western markets and aid.

  3. Investment in Human Capital: Education and skills development are critical for driving innovation and entrepreneurship. Governments must prioritize technical and vocational training to equip citizens with the skills necessary for economic growth.

  4. Sustainable Resource Management: African countries need to develop better mechanisms for managing their vast resources. This includes negotiating fairer trade agreements, curbing corruption, and ensuring that resource revenues benefit local populations.

Political and Social Ramifications While Mornah’s position is rooted in economic pragmatism, the political implications of USAID cuts cannot be ignored. Many African leaders have historically used foreign aid to supplement government budgets, sometimes at the expense of developing sustainable revenue sources. Without aid, governments may face increased pressure to improve governance, strengthen tax collection mechanisms, and reduce corruption.

Additionally, the social impact of aid cuts could lead to political instability if governments fail to implement alternative funding strategies. Healthcare services, food aid programs, and education initiatives could suffer, potentially leading to unrest among affected populations.

Expert Perspectives on the Future of African Development Economists and political analysts have weighed in on the debate surrounding USAID cuts. Some argue that while aid has played a crucial role in development, its long-term effectiveness is questionable. According to Dambisa Moyo, author of Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa, foreign assistance often stifles innovation and entrepreneurship by creating a dependency syndrome.

Others, however, caution against an abrupt withdrawal of aid, citing the potential for economic shocks that could worsen poverty levels. Instead, they advocate for a phased transition where African nations gradually reduce their reliance on aid while strengthening domestic economic structures.

Conclusion The USAID cuts present both a challenge and an opportunity for Africa. While the immediate effects may be difficult, the long-term potential for self-reliance and economic independence is immense. Bernard Mornah’s call for Africa to stand on its own feet resonates with the broader vision of an economically self-sufficient continent. The responsibility now lies with African leaders to seize this moment, implement policies that promote sustainable development, and ensure that Africa moves beyond aid dependency to true economic sovereignty.

Ultimately, whether this wake-up call translates into tangible progress depends on the political will of African governments, the commitment of the private sector, and the resilience of the African people.




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