Washington, May 2, 2025 – In a shock decision, the Trump administration proposed the pure and simple elimination of American funding to the African Development Fund (FAD), Concessional arm of the African Development Bank (BAD). In the 2026 budget transmitted to the congress, the executive justifies this cut by an absence of alignment with “administration priorities”.
In total, $ 555 million in contributions to African multilateral institutions, including the BAD, are targeted. The administration says that it wants to refocus American aid on profitable investment instruments via the DFC (US International Development Finance Corporation), and abandon the funding linked to climate, equality or governance, deemed “radical” or “ideological”.
Immediate consequence: a gaping hole in the financing capacities of projects in sub -Saharan Africa, especially in the sectors of agriculture, infrastructure, health and climate. The decision also weakens the strategic weight of the United States in African development policies.
An alarming signal for the continent, at a time when financing needs have never been so urgent.
Financial Afrik
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