President John Dramani Mahama
In response to the recent suspension of United States Agency for International Development (USAID) funding, President John Dramani Mahama has directed the Minister of Finance, Dr. Cassiel Ato Forson to urgently address the resulting financial shortfall.
The suspension has created a funding gap estimated at US$156million, with a projected US$78.2million shortfall threatening critical health interventions.
In a statement issued on Tuesday, February 11 and signed by presidential spokesperson Felix Kwakye Ofosu, the president expressed deep concern over the development’s potential to severely impact critical interventions.
“President John Dramani Mahama has directed that Minister for Finance Hon. Dr. Cassiel Ato Forson take urgent steps to bridge the funding gap arising from suspension of USAID’s international funding programme,” the statement read.
The president has requested that bridging arrangements focus on these priority areas to mitigate any deleterious effects occasioned by the USAID funding disruptions.
Of particular emphasis is malaria prevention, maternal and child health, family planning, reproductive health, nutrition and the fight against HIV/AIDS – under which the availability of antiretroviral drugs, testing and prevention programmes is vital.
The suspension of USAID funding is a consequence of President Donald Trump’s recent executive order, which temporarily halts all U.S. foreign assistance programmes for 90 days pending a review to determine alignment with his policy goals.
This move has led to significant disruptions in various international aid programmes, including those targetting health crises in Africa.
The Trump administration’s dismantling of USAID has severely impacted its ability to track US$8.2billion in unspent humanitarian aid, according to a government warning. The administration’s freeze on foreign funding and reduction of staff has rendered oversight largely non-operational, risking aid falling into extremist hands and commodities rotting.
Domestically, the suspension’s impact is particularly acute in the fight against HIV/AIDS.
According to the latest UNAIDS estimates – based on 2023 data and captured in the 2024 Global Aids Report – 18,000 people were newly infected with HIV (an incidence of 0.56 per 1,000 uninfected population) in the year.
This comes as 330,000 people were living with HIV (prevalence of 1.5 percent among adults aged 15-49).
The USAID funding shortfall threatens to disrupt the availability of antiretroviral drugs, testing and prevention programmes, which are vital to controlling the epidemic.
Analysts have expressed concern that the funding gap could reverse progress made in recent years. Data from the 2023 national and sub-national HIV and AIDS estimates and projections confirmed the UN body’s estimate.
It showed 17,774 people – 6,457 males and 11,317 females – became newly infected with HIV in that year. The number comprises 4,869 youth between 15 and 24, 1,698 children under 15, 1,520 adolescents between 10 to 19 and 16,076 adults.
Analysts have however questioned how government intends to bridge the gap, arguing that alternative funding sources to ensure the continuity of these essential health services are strained on account of limited fiscal space and pre-election tax-cut promises.
The broad expectation is that the Finance ministry will explore internal budget reallocations and engage with international partners to bridge the funding gap.
