Issue No. 66

Published 30 Jan 2025

The Aid Suspension Fallout

Published on 30 Jan 2025 23:59 min

The Aid Suspension Fallout

The sudden suspension of US foreign aid is already having major reverberations around the Horn of Africa. Just days after Donald Trump's inauguration for his second non-consecutive term, a sweeping 90-day pause to foreign assistance was announced by the State Department– now led by Marco Rubio. The decision has been ostensibly motivated by an effort to cut 'waste,' end 'woke' programming, and align foreign aid to perceived American interests. Dozens of USAID officials have been dismissed, pulled back to Washington, or placed on indefinite leave. Hundreds of programmes have been suspended, ranging from mine clearance to protecting human rights defenders to elements of HIV/AIDS prevention in sub-Saharan Africa. Only military aid to Israel and Egypt, as well as emergency food programmes, have been exempted. 

It has certainly lain down the gauntlet--marking one of the most violent diplomatic about-turns in living memory. Since World War II, almost without interruption, the US has underpinned the Bretton Woods system and the international development order in the era of Pax Americana, backed by the world's largest economy and military. The US has continued to provide, by some distance, the most significant funding for humanitarian assistance and development programming. For instance, in 2024, the US provided USD 2.49bn to the UNHCR, making up around 20% of the agency's total budget. The Horn, too, is particularly dependent on Washington's funding. The US is the largest humanitarian and developmental assistance provider for nearly every nation in the region, including Kenya, Somalia, and Ethiopia.

Much of this aid may be restored in the coming weeks as the laborious task of reviewing all programmes and whether they align with a poorly prescribed 'America First' nationalist ideology is undertaken. What has been stated, though, is that anything related to the green energy transition and climate crisis, which the Horn is highly vulnerable to, as well as gender and family planning, is unlikely to be restored. Programmes are still able to apply for waivers for funding to be continued, and some have been approved, but these are few and far between, and the scale of the suspension remains immense. The speed at which the Trump administration has moved– and its apparent ease with the innumerable consequences of the suspension-- encapsulates the new government's agenda. Overnight, the US has upended the awkward foreign policy of the departed Biden administration, which preached human rights to Moscow while continuing to arm Israel. It was nevertheless the pre-eminent financier of development through traditional channels.

In turn, the US's dramatic retreat from the development space signifies a shift towards a far more conspicuous international realpolitik, with 'American interests' at its heart. For Marco Rubio, in a press statement on 22 January, this was centred around three questions, "Does it make America safer? Does it make America stronger? Does it make America more prosperous?" No US taxpayer's dollars will go towards anything that does not align with these vague principles, but it can be presumed that funding for civil society groups or democratic organisations is unlikely to be restored. Instead, Steve Witkoff– the new Middle East envoy– has already stated that reviving the Abraham Accords is one of its top foreign policy priorities. This was the normalisation of relations between a number of Arab countries, including Sudan, though never ratified, and Israel during the first Trump administration. Other objectives include a more forceful anti-China stance and resolving the rift between Saudi Arabia and the United Arab Emirates (UAE). However, as was the case during the first Trump administration, many of the foreign policy priorities in the next four years could appear on a whim.

There are plenty of critiques of the international aid system and the US's contribution to it, including issues of dependence and bureaucratisation. It is not solely out of the goodness of the US's heart that the humanitarian and development programmes have been sustained. It has provided immense soft power, kept countries within the American orbit, and aligned with Washington's foreign policy agendas, including the War on Terror post-2001. There are also domestic interests at play, such as the surplus grain from Kansas farmers supplying the World Food Programme. But it is also true that many of these programmes have done an immense amount of good around the world, feeding, educating, and housing millions of people.

Few programmes or organisations can easily weather a 90-day budget suspension, particularly in the harsh development funding environment. Key personnel are likely to be lost with programmes and organisations already shuttering operations, unsure when or if their support will be restored from USAID. And the brutal suspension comes amid a broader trend of European nations also cutting or freezing their foreign aid budgets.

In Kenya, despite the elevation of the East African country to a 'Major Non-NATO Ally', the suspension is also expected to hit businesses. Deals on renewables and promises of a supported green energy transition after the visit of President William Ruto to Washington in 2024 are likely to be slashed or not renewed-- hitting an already struggling economy. Kenya and others in sub-Saharan Africa are also certain to be impacted by the sweeping changes to family planning and healthcare programmes.

Somalia's federal government, meanwhile, is also highly dependent on US largesse, with two countries agreeing on a USD 68.5 million development assistance grant last October, intended to address a host of issues, including governance reforms, health, education, and the empowerment of women and youth. The Republican party is expected to be less sympathetic to the USD billions that have been sunk into Somalia and the limited progress to show for it. For Ethiopia, the consequences are also expected to be significant– with the country receiving USD 1.2bn in assistance in 2024, the most in Africa. That includes USD 118 million for food security, USD 85 million for health programmes, and USD 67 million for agriculture. 

Beijing and Moscow are both waiting in the wings for any further withdrawal of the US influence from the African continent. Their modus operandi may be different, but both China and Russia are motivated by a desire to undermine US supremacy and the efficacy of sanctions against their regimes. This, too, remains in the interest of nominal US allies, including the UAE, which is part of the BRICS multilateral coalition posing a challenge to the liberal international order. The suspension should also be placed into the broader context of a retreating US that has ceded significant decision-making and interest in the Horn to its favoured allies in the Gulf, namely the UAE and Saudi Arabia. The suspension of aid is the latest piece of the roiling shifts to an increasingly multi-polar world. The dust has yet to settle, but the consequences are already being keenly felt by communities and left projects scrambling across the Horn.

By the Horn Edition Team 

To continue reading, create a free account or log in.

Gain unlimited access to all our Editorials. Unlock Full Access to Our Expert Editorials — Trusted Insights, Unlimited Reading.

Create your Sahan account Login

Unlock lifetime access to all our Premium editorial content

You may also be interested in

Issue No. 127
Total War in the Horn of Africa
The Horn Edition

'Give Peace a Chance' was the title of a 1969 single written by John Lennon, recorded during his famous honeymoon 'bed-in' with Yoko Ono. Capturing the counterculture sentiments of the time, it was adopted as an anthem of the anti-Vietnam War movement in the following decade. Thirty years later, a provocative inversion of the title-- 'Give War a Chance'-- was adopted in a well-known Foreign Affairs article by Edward Luttwak in 1999, in which he argued that humanitarian interventions or premature negotiations can freeze conflict, resulting in endless, recurring war. Luttwak contended that war has an internal logic, and if allowed to 'run its course', can bring about a more durable peace.


27:16 min read 30 Apr
Issue No. 954
The Malian Mirror
The Somali Wire

A foreign-backed president, a besieged capital city, and a jihadist movement affiliated with Al-Qaeda-- this time not Somalia, but Mali. Late last week, Jama'at Nusrat al-Islam wal-Muslimin (JNIM), the transnational Salafist-jihadist group in Mali, stormed across much of the country's north, as well as entering Bakamo and assassinating the defence minister. The coordinated offensive-- in conjunction with the Tuareg separatist movement, the Azawad Liberation Front (ALF)-- has left the military junta reeling, and forced the withdrawal of their Russian allies from a number of strategic towns.


10:18 min read 29 Apr
Issue No. 329
Washington eyes Asmara
The Ethiopian Cable

Last week, a bombshell Wall Street Journal article revealed that Washington was exploring a reset in relations with Eritrea, with US envoy for Africa Massad Boulos having met privately with senior regime officials in Egypt. Any normalisation of ties now appears to be on ice, with the reaction to Boulos's meetings — facilitated by Egypt — having been met with short shrift. But the episode speaks to broader issues about American foreign policy in the Horn and the accelerating reconfiguration of the Red Sea political order, which will not go away simply because this particular overture may have stalled.


0 min read 28 Apr
Issue No. 953
A Coronation in Mogadishu – How Clans Stormed the Citadel
The Somali Wire

Last weekend, the Murusade, a major sub-clan of the powerful Hawiye clan family, staged one of the largest and most colourful coronations of a clan chief in recent memory in Mogadishu. The caleemasarka (enthronement) of Ugaas Abdirizaq Ugaas Abdullahi Ugaas Haashi, the new Ugaas or sultan of the Murusade, was attended by thousands of delegates from all parts of Somalia. Conducted next to the imposing and magnificent Ottomanesque Ali Jim'ale Mosque, on the Muslim day of rest, Friday, the occasion blended the Islamic, the regal and the customary; a restatement of an ancient tradition very much alive and vibrant.


21:22 min read 27 Apr
Issue No. 952
Fishy Business: IUU Fishing in Somalia
The Somali Wire

With all eyes trained on the Strait of Hormuz blockades and their geopolitical convulsions, discussions and concerns, too, have risen about the perils of other globalised chokepoints, not least the Bab al-Mandab. The threats to the stability of the Bab al-Mandab, the Gulf of Aden, and the Red Sea may not arise principally from the escalatory logic that the US, Iran, and Israel have been locked in, but the threats posed from collapse and contested sovereignty offer little relief. Off Somalia's northern coastline in particular, it is transnational criminal networks — expressed in smuggling, piracy, and, less visibly but no less consequentially, illegal, unreported, and unregulated (IUU) fishing — that define the character of offshore insecurity. It is this last phenomenon that provides the foundation on which much of Somalia's maritime disorder is built, and which remains the most consistently neglected.


21:07 min read 24 Apr
Issue No. 126
Russia in the Horn: Opportunism in an Age of Disorder
The Horn Edition

In the past months, a number of unsettling images and videos have emerged from the Russian frontlines in the Ukraine war. Within the horrors of the grinding "kill zone," where kamikaze drones strafe the sky for any signs of movement, yet another concerning dimension has emerged—the use of African recruits by Moscow in the conflict, often under false pretences. Particularly drawn from Kenya, many reportedly believed they were signing contracts to work as drivers or security guards, only to be shipped to the front lines upon arrival. Such activities are illustrative of several issues, including Russia's relationship with countries in the Horn of Africa, one shaped more by opportunistic realpolitik than genuine partnership.


28:23 min read 23 Apr
Issue No. 951
Federal Overreach in Baidoa Faces Pushback
The Somali Wire

Villa Somalia's triumph in Baidoa may yet turn to ashes. Since the ousting of wary friend-turned-foe, Abdiaziz Laftagareen, in late March, the federal government has ploughed ahead with preparations for state- and district-level elections in South West. Nominally scheduled for next week, President Hassan Sheikh Mohamud has chosen to reward his stalwart parliamentary ally, Aden Madoobe from the Rahanweyne/Hadaamo, with the regional presidency after some vacillation, naming him the sole Justice and Solidarity Party (JSP) candidate


0 min read 22 Apr
Issue No. 328
The TPLF versus the TIA-- again
The Ethiopian Cable

Another showdown over Tigray's political architecture is unfolding, with the future of the Tigray Interim Administration (TIA) once again at stake. For much of this year, fears of renewed war have loomed over Ethiopia's northernmost region, with the federal government mobilising substantial forces to the edges of Tigray.


19:44 min read 21 Apr
Issue No. 950
A City Without Its People
The Somali Wire

In Act III, Scene I of William Shakespeare's tragedy Coriolanus, the tribune Sicinius addresses the gathered representatives and, rejecting the disdain the titular character displays towards plebeians, defends them, stating, "What is the city but the people?" Capturing the struggle between the elite and the masses of ancient Rome, the line has remained politically resonant for centuries--emphasising that a city, democracy, and state rely on the people, not just their leader. Or perhaps, not just its buildings. It is a lesson missed by Villa Somalia, though, with the twilight weeks of President Hassan Sheikh Mohamud's term in office — at least, constitutionally — dominated by the government's twin campaigns in the capital: land clearances and the militarisation of Mogadishu.


20:32 min read 20 Apr
Scroll