The Ripple Effect: USAID Freeze and Its Devastating Impact on Ethiopia

theguardian
Fred Harter in Addis Ababa
Fri 21 Feb 2025 00.00 ES

Ethiopia previously held the position of the largest beneficiary of United States aid in sub-Saharan Africa until funding was suspended by Donald Trump last month. This decision has significant implications across various sectors, including food security, healthcare, and support for refugees and survivors of sexual abuse. The ramifications of this funding freeze have prompted aid organizations to reassess their strategies and operations in response to the urgent needs of the affected populations.

A significant consignment of food, trapped in containers, faces the risk of spoilage before it can be distributed to millions in need. The delivery of essential medicines to isolated rural clinics has been halted, leaving numerous HIV patients and survivors of sexual violence without critical support.

The executive order issued by Donald Trump, which suspends USAid funding for a period of 90 days, has severely disrupted numerous crucial initiatives in Ethiopia. While some life-saving programs have been granted waivers, the majority have not, prompting USAid officials in the region to urgently seek exemptions for their operations, all while facing potential termination from Elon Musk’s “government efficiency” agency.

In 2023, Ethiopia was the recipient of over $1 billion in American aid as it contended with the challenges of drought and civil unrest, positioning it as the largest beneficiary of U.S. assistance in sub-Saharan Africa and the fifth largest globally. A substantial portion of this funding was allocated to emergency humanitarian efforts, which included provisions such as grain, medications, high-energy biscuits for malnourished children, as well as water and tents for those displaced by conflict.

USAID has allocated substantial resources, amounting to hundreds of millions of dollars, to enhance the healthcare infrastructure in Ethiopia, generate employment opportunities, and improve literacy rates. These initiatives are designed to foster the long-term development and stability of a nation with a population of 120 million, which the United States has historically regarded as a vital ally in the Horn of Africa, a region characterized by volatility and proximity to the strategically important shipping routes of the Red Sea.

Ahmed Hussein, representing the Ethiopian Civil Society Organisations Council, which encompasses 4,400 local NGOs, expressed that the sudden directive from Trump has caused significant distress within Ethiopia’s humanitarian sector, leaving organizations with insufficient time to secure alternative funding for essential life-saving initiatives. He emphasized the dire consequences of this funding disruption, stating, “This directly affects millions of Ethiopians. If the funding does not resume, it could lead to deaths and an even larger humanitarian crisis in conflict-affected and food-insecure regions.”

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In 2024, approximately 16 million individuals in Ethiopia depended on food aid, with a staggering half of the nation’s children suffering from malnutrition. This dire situation arose as the country faced the dual challenges of climate change and ongoing civil unrest. The United States Agency for International Development (USAID) emerged as the largest contributor of food assistance, distributing resources through the United Nations World Food Programme (WFP) and various non-governmental organizations, including Catholic Relief Services.

A significant portion of the food aid is procured directly from American agricultural producers and transported to Ethiopia via the port of Djibouti, with the shipments prominently marked by the American flag. This logistical arrangement underscores the reliance on U.S. agricultural output to address the pressing food security issues in Ethiopia.

Prior to the suspension of USAID funding, humanitarian organizations in Ethiopia were already facing an unprecedented shortfall in financial resources, having received only 29% of the required $3.2 billion in the previous year. The WFP has been compelled to reduce food rations by 40% for nearly 800,000 refugees. Looking ahead to 2025, the target for food assistance has been lowered to 5 million individuals, a decision influenced by both a decrease in needs and the necessity to prioritize aid for the most vulnerable populations. Humanitarian officials express concern that the freeze on USAID funding may exacerbate the existing funding crisis.

Although food essential for survival was exempt from the executive order issued by Trump, the World Food Programme (WFP) still required a waiver to continue the distribution of American grain, which resulted in a week-long disruption of deliveries to millions of beneficiaries. These operations have now resumed; however, the payment system of USAid is currently non-operational, and as it stands, the agency will be unable to procure additional food supplies once its current stock in Ethiopia is depleted.

This situation is already having significant repercussions. Presently, 34,880 metric tonnes of sorghum, pulses, and vegetable oil—sufficient to sustain 2.1 million individuals for a month—are stranded at the port of Djibouti, facing the risk of spoilage before reaching those in need due to a lack of funds to compensate contractors for transporting the goods into Ethiopia. A senior aid official in Ethiopia remarked, “There is a huge liquidity crisis. Even if you have a waiver, there is limited money to pay for warehouses, guards, or trucks. You risk a situation where thousands of bags of food can’t be distributed and will sit there, rotting or at risk of being looted.”

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