The latest round of aid cuts has been brutal for Africa. According to the IMF, early estimates point to bilateral aid cuts of about 26% in 2025 alone in sub-Saharan Africa. In a note, IMF Africa department economists Chie Aoyagi, Maurizio Leonardi and Athene Laws, with research analyst Hamza Mighri, say that sub-Saharan Africa remains more dependent on aid than all other global regions.
On average, aid accounted for 3% of GDP at the regional level in sub-Saharan Africa. But in low-income countries and fragile states, aid often reached the equivalent of 6% of GDP or more, and in some cases far higher. Over half of that aid was used to finance essential services such as health, education and humanitarian assistance, they write.
What is driving the decline? The Trump administration's decision to drastically slash aid budgets is a major factor. Once a generous donor, the US has shuttered US Aid and shifted towards business-minded deals with African countries. US global economic aid obligations were down 65% in 2025.
In June the US government even said that it will stop funding programmes in South Africa intended to tackle the spread of HIV and Aids. The US was previously providing around $400m a year to South Africa through the President's Emergency Fund for Aids Relief (Pepfar). The decision to end that - which is likely to cost lives, according to UNAIDS chief Winnie Byanyima, follows months of geopolitical tension between the countries.
Originally published by African Business.