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Suspension of foreign aid by the US government; massive impact on Malawi - 19.02.2025



Upon taking office on January 20, 2025, newly elected U.S. President Donald Trump signed Executive Order 14169, titled "Reevaluation and Realignment of U.S. Foreign Aid." The order's content: an immediate halt to all foreign aid for an initial period of 90 days. Furthermore, the U.S. government announced plans to drastically limit the capabilities of the U.S. Agency for International Development (USAID), including a reduction of its workforce from the current approximately 10,000 employees to just 300.


Malawi is heavily dependent on U.S. foreign aid and the development cooperation programs implemented by USAID ( 'Devastating': Malawi left in dire straits by Trump's decision to freeze aid - The Guardian ). The country receives approximately $350 million annually to support healthcare, agriculture, education, and environmental initiatives ( www.state.gov/us-relations-with-malawi/). Nearly 70% of Malawi’s health budget comes from international aid, with USAID being one of its most crucial sources.


Key USAID development programs include:


  • HIV/AIDS prevention program ( PEPFAR )

  • Funding for medications against HIV/AIDS, malaria, and tuberculosis

  • Support for small farmers to combat hunger and malnutrition

  • financing of school construction, teaching materials and scholarships

  • Financial support for small businesses and climate-friendly technologies


It remains uncertain what will happen to these programs once the 90-day freeze expires. However, it is highly likely that most of them will be entirely discontinued or reduced to a minimum.


The first impacts are already being felt by many USAID-sponsored university students in Malawi. They have been asked to drop out of their studies or find alternative funding sources to continue their education (Malawi university students feel impact of US aid freeze - VOA News ).


Due to the lack of funds, Malawi could soon face severe health crises and even widespread famine. In light of this situation, private and governmental initiatives from the international community are more critical than ever.

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