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USAID Slashes Ghana Aid by $250M: A Call for Self-Reliance

  //science-technology.news-articles.net/content/2 .. -ghana-aid-by-250m-a-call-for-self-reliance.html
  Published in Science and Technology on Friday, November 14th 2025 at 4:17 GMT by Ghanaweb.com

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Ghana’s Call for Self‑Reliance in the Face of USAID’s Funding Cut

When the United States Agency for International Development (USAID) announced a substantial reduction in its financial support for Ghana, the country’s political leadership and development community were left scrambling for answers. In a high‑profile interview published on GhanaWeb, former Deputy President and former Minister of Finance, Ibrahim Murtala Mohammed, voiced a stern warning: Ghana must no longer lean on foreign aid for survival but instead pursue a path of self‑reliance. The article, which draws on a range of sources and embedded links, lays out the rationale behind the funding cut, the potential repercussions for the Ghanaian economy, and Mohammed’s vision for a more autonomous development strategy.

The USAID Cut: Why It Happened

USAID’s decision to slash its annual contribution to Ghana—amounting to roughly $250 million (about 15 % of the previous year’s aid budget)—was framed by Washington as a “shift toward greater country ownership.” According to the US State Department’s statement linked in the article, the reduction followed a review of donor-funded projects that indicated a need for increased local participation and reduced donor dependency. The agency highlighted that the change would not terminate all support; instead, it would encourage Ghana to mobilise domestic resources and private sector investment.

For Ghana, the cut is significant. USAID’s projects cover a wide swathe of development priorities—from agricultural extension services and irrigation schemes to health programmes and educational reforms. The GhanaWeb piece cites a 2022 report by the World Bank that projected that external assistance accounts for roughly 12 % of the country’s Gross Domestic Product (GDP). A sudden dip in aid could thus amplify existing fiscal pressures and slow progress on key development indicators.

Ibrahim Murtala Mohammed’s Response

Mohammed, who steered Ghana’s public finances through a period of relative stability in the early 2000s, took the opportunity to urge the current government to treat the funding cut not as a setback, but as a catalyst for domestic capacity building. “This is a moment of reckoning,” he told reporters. “We can no longer view development as a charity; it must be a partnership where Ghana is the owner, the driver, and the beneficiary.”

In a statement linked to the article’s “Quotes” section, Mohammed called for a multi‑sectorial strategy that would:

1. Strengthen the Agricultural Backbone
   - Intensify investment in irrigation and post‑harvest infrastructure.
   - Expand training programmes for farmers in climate‑smart agriculture.
   - Create a national platform for agri‑value chains that links producers directly to markets.

2. Promote Economic Diversification
   - Move beyond the traditional cocoa and oil sectors into manufacturing, renewable energy, and digital services.
   - Offer incentives for foreign direct investment (FDI) that align with national priorities, such as the “One‑Stop‑Shop” policy for investors.

3. Bolster Human Capital Development
   - Increase funding for tertiary education and vocational training, especially in STEM fields.
   - Encourage public‑private partnerships (PPPs) to run skill‑development centres.

4. Enhance Fiscal Discipline
   - Continue the policy reforms initiated during his tenure, such as the debt‑management strategy and the introduction of a more robust public procurement system.
   - Introduce performance‑based budgeting to ensure transparent allocation and utilisation of public funds.

Mohammed also stressed the importance of institutional reforms. “Donor funding often brings with it a set of reporting requirements that can overwhelm ministries,” he said. “We need to streamline administrative processes, reduce bureaucracy, and empower local governments to plan and execute projects that directly benefit their constituents.”

A Broader Narrative: The Ghanaian Development Context

The article places Mohammed’s remarks within a broader narrative about Ghana’s development trajectory. It includes a link to the Ghanaian Ministry of Finance’s Annual Report 2023, which details the country’s debt burden of approximately US$12 billion and its commitment to reducing the debt‑to‑GDP ratio below 30 % by 2028. In the same report, the ministry projects that domestic savings could finance up to 60 % of future development needs if the government can achieve higher growth rates and improve tax collection.

Another embedded link points to a GhanaWeb commentary on the “Agenda for the 2024 Presidential Election.” The piece notes that political leaders across the spectrum acknowledge the need for a more self‑reliant economy. It suggests that Mohammed’s call for reduced dependence on foreign aid is likely to resonate with voters who have grown tired of aid‑driven rhetoric that yields limited tangible benefits.

The Road Ahead: Challenges and Opportunities

While Mohammed’s vision is optimistic, the article acknowledges significant obstacles. The sudden loss of USAID funds could strain already fragile social safety nets, particularly in rural communities that rely on agricultural extension services. The shift to a more domestic funding model will require rapid capacity building in financial management, project planning, and stakeholder engagement.

The article also highlights the opportunity for Ghana to recalibrate its trade policy. A link to the African Continental Free Trade Area (AfCFTA) agreement indicates that Ghana could leverage intra‑African trade to compensate for reduced external aid. Mohammed argues that aligning national industry standards with AfCFTA requirements could open new export markets for Ghanaian products.

Conclusion

Ibrahim Murtala Mohammed’s call for self‑reliance reflects a growing sentiment within Ghana that the nation’s future should not be tethered to the fluctuating priorities of foreign donors. The USAID funding cut, while a financial shock, could serve as a wake‑up call to accelerate reforms, deepen domestic resource mobilization, and cultivate a resilient, diversified economy. As Ghana’s political leaders grapple with these challenges, the country’s next decade will hinge on how effectively it translates this vision into concrete policies and programmes that empower citizens, spur innovation, and secure long‑term prosperity.