GhanaWeb Feature by Ishmael Batoma:
United States (US) President, Donald Trump’s decision to close down the United States Agency for International Development (USAID) would certainly have a devastating impact on countries, including Ghana.
As the politics of the closure of USAID continues in the US, with the operation of the agency being halted by the Trump administration, and staff being asked to proceed on leave, Ghana and other countries have already started feeling the heat.
A leaked letter addressed to the Director-General of the Ghana Health Service has indicated that the halt in the operation of USAID has already led to disruptions in the supply of medical supplies in some parts of the country.
With Ghana dependent on support from USAID for the implementation of projects and programmes in key sectors of the country, there would be serious consequences should the Trump administration succeed in its quest to close down the agency.
This article looks at the potential amount of funding Ghana is likely to lose and the areas it would affect should President Donald Trump have his way.
Funding Ghana receives from USAID:
According to JoyNews, data from USAID shows the government of Ghana, on average, receives funding of $150 million from USAID.
These funds are used to implement programmes in various sectors of the economy, including education, health, agriculture, and governance.
For 2025, the government of Ghana is reported to have requested $137.7 million to fund programmes in the sectors listed above.
Breakdown of the $137.7 million:
Health:
Out of the $137.7 million, $69.2 million is expected to be used to fund programmes in the health sector.
The $69.2 million represents about 50 percent of the total amount of money Ghana has requested from USAID.
One of the health sector projects expected to be affected is a five-year, $25 million partnership USAID signed with the government of Ghana.
This project aims to enhance the quality of primary healthcare delivery at community health facilities and health centres in the northern parts of the country.
Already, there are indications that the suspension of USAID support for Global Procurement Supply Chain activities has disrupted the supply of health commodities in some parts of the country.
Education:
Nearly $16 million ($15.9 million) of the USAID funds Ghana has requested is expected to go into education.
This represents about 12 percent of the total funds the country has asked for from the US government.
One significant education sector project supported by USAID in Ghana that is likely to be impacted is the Strengthening Accountability in Ghana’s Education System (SAGES) Activity.
The initiative was launched in September 2023 and is expected to be implemented for five years.
An amount of $60 million is expected to be used to fund education programmes in Ghana, which would improve educational accountability and service delivery in primary education.
Agriculture sector:
Also, about $33 million of the money is expected to be used for the implementation of programmes in the agriculture sector, which is about 24 percent of the total USAID funds.
USAID in Ghana, in 2023, launched a $25 million project to boost Ghana’s agricultural sector.
USAID partnered with Absa Bank Ghana and Opportunity International Savings and Loans to provide new financing, focusing on regions like the Northern, North East, Upper East, Upper West, and Savannah to support Micro, Small, and Medium-sized Enterprises (MSMEs) in Ghana’s agricultural sector.
This project is expected to be affected should the closure of the agency happen.
Climate Change:
About $3 million of the USAID fund (2 percent) is also expected to support Ghana’s climate change efforts.
One of the key projects the agency funds in Ghana is the Feed the Future Climate-Smart Agriculture (CSA) Activity.
This project, which is likely to be impacted, assists farmers in adapting to climate change, while increasing agricultural productivity and improving food security.
Impact on national budget:
The closure of USAID is also likely to have an impact on Ghana’s national budget. In the 2024 budget, over $8 million from USAID was listed as one of the bilateral and multilateral grants that Ghana signed in 2023.
Even though the over $8 million funds from the agency were relatively small compared to others received, its cancellation means the John Dramani Mahama government would have to find the money to continue the implementation of the projects the money was being used for. Although the stage of the implementation of the projects cannot be confirmed now, such projects are normally implemented for 5 years, so with the agreement signed in 2023, it is likely to end in 2028.
The USAID money captured in the budget was being used to fund two projects. Over $5 million of the fund was being used for the implementation of the NHIA System Strengthening G2G Activity by the National Health Insurance Authority (NHIA).
The remaining amount, nearly $3 million, was used to implement the Strengthening Accountability in Ghana’s Education System (SAGES) G2G Activity by the Ministry of Education; GES, National Teaching Council; National Council for Curriculum and Assessment; and the National Schools Inspectorate Authority.
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