Africa & World

UK Aid Cuts Deliver Fresh Blow to Africa as US Reductions Deepen Crisis  

By Business Day AfricaMarch 3rd, 2025
Australian Ambassador to Kenya Luke William during a past event in Nairobi. Photo: BDA.

The United Kingdom has slashed its foreign aid budget, delivering another setback to Africa, which relies heavily on donor funding for critical development projects.

The cut, from 0.5 percent to 0.3 percent of gross national income, comes as the UK reallocates resources to bolster its defense spending.

The move has triggered backlash from humanitarian groups, warning of severe consequences for vulnerable populations.

Anneliese Dodds, the UK’s International Development Minister, resigned in protest, accusing Prime Minister Keir Starmer of undermining global poverty alleviation efforts and strengthening the influence of Russia and China in Africa.

The UK decision follows a similar move by the United States, which announced in January that it was halting funding for HIV/AIDS programmes across Africa.

The abrupt cuts to USAID programmes are expected to disrupt critical health initiatives, with experts warning that up to 500,000 additional deaths could occur in South Africa alone over the next decade.

The reductions have hit organisations such as the Elizabeth Glaser Pediatric AIDS Foundation, forcing them to scale back or shut down life-saving interventions, including access to antiretroviral drugs for HIV-positive mothers and at-risk communities.

The US funding reductions are part of a broader retraction, with over 90 percet of USAID contracts terminated and $60 billion in overseas aid slashed.

Africa remains heavily dependent on foreign aid to finance healthcare, infrastructure, and poverty alleviation programmes.

The simultaneous withdrawal of funds by two of the continent’s biggest donors threatens to unravel years of progress, leaving millions at risk.

The latest funding cuts highlight Africa’s vulnerability to geopolitical shifts and donor policy changes.

With global priorities shifting, experts argue that African nations must accelerate efforts to build self-sufficient economies and reduce their dependence on external funding to sustain long-term development.

gandae@businessdayafrica.org