America first? USAID budget cuts could hit Ethiopia hardThe potential end of USAID’s operations would risk destabilizing fragile nations like Ethiopia, where millions rely on American support for survival and recovery.
Trump’s USAID budget cuts could reshape global aid, threatening Ethiopia’s stability
A strategic tool in decline
Since its creation in 1961, USAID has been a key instrument of US soft power, delivering life-saving interventions in conflict zones, combating disease and supporting fragile economies.
In the 2023 fiscal year, the agency allocated over US$40 billion across 130 countries, with Ethiopia receiving US$1.676 billion – the largest African aid package and second only to Ukraine. This funding targeted severe drought, conflict-induced displacement and acute food insecurity, stabilising a region critical to Horn of Africa geopolitics.
However, growing isolationist rhetoric threatens these efforts. The Trump administration proposed deep cuts to USAID, reflecting a broader ideological shift toward “America First” policies. If implemented, these reductions could weaken US influence in regions where humanitarian needs intersect with strategic interests.
The consequences of cutting aid
Reducing USAID’s presence in Ethiopia and similar countries would have immediate, far-reaching consequences. Ethiopia, recovering from a two-year civil war in Tigray, remains dependent on foreign assistance to rebuild infrastructure and address widespread food insecurity.
The World Food Programme estimates that more than 20 million Ethiopians currently need humanitarian aid. A funding reduction could lead to famine and renewed instability, threatening regional security.
The Ethiopia case
In November 2024, USAID launched the US$31 million Markets for Sanitation (M4S) project, a five-year initiative designed to improve access to sanitation and hygiene services across Ethiopia.
The project, which builds on the success of the previous USAID Transform WASH initiative, aims to provide 5.4 million Ethiopians with access to basic sanitation and enable 180,000 women and girls to obtain menstrual health and hygiene products.
The M4S project will operate in multiple regions, including Tigray, Amhara, Oromia, Sidama, Somali, South Ethiopia, Central Ethiopia and Southwest Ethiopia. It seeks to foster a competitive sanitation market, ensuring that products and services are both affordable and accessible, while promoting market-based solutions for long-term sustainability.
The mission is to “unlock the power of markets to drive change and give Ethiopian citizens ownership of that change,” said USAID Ethiopia Mission Director Scott Hocklander.
The M4S initiative is part of USAID’s expanding Water, Sanitation, and Hygiene (WASH) portfolio, which currently involves an investment of US$190 million aimed at improving access to safe water supplies and basic sanitation in both rural and urban areas.
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