The effects of the US foreign aid suspension on northern Ghana

For decades, Ghana has been a significant recipient of foreign aid from the United States, particularly through the United States Agency for International Development (USAID). 

In Northern Ghana, USAID's interventions have been particularly transformative. Nevertheless, the United States government abruptly suspended USAID funding to countries, including Ghana, on January 20, 2025, necessitating the immediate cessation of critical development programs. 

Contribution of USAID to Ghana's development

USAID has been a critical development partner in Ghana for many years, with an annual contribution of more than $150 million to a variety of programs that are designed to promote economic growth, social development, and improvement in governance. 

Examples of projects funded by USAID

The Resilience in Northern Ghana (RING II) Systems Strengthening Activity, a $21.9 million initiative that was being implemented to improve nutrition, strengthen economic resilience, and improve local governance systems in Northern Ghana.

The Accelerating Social and Behavior Change (ASBC) Activity, a $29 million Activity aimed at an increase in the sustained adoption of health behaviors and practices, including timely use of health services and products.

The Feed the Future Ghana Market Systems and Resilience (MSR) Activity, a $39.5 million initiative aimed at providing smallholder farmers with access to commercial markets, enhanced seeds, and fertilizers. 

The Advancing Partnerships for Improved Learning (APIL) Activity, a $14.39 million programme designed to enhance low-fee private schools by providing financial support for infrastructure expansion, teacher training, and school leadership development. 

The Strengthening Accountability in Ghana’s Education System (SAGES) Activity, a $60 million programme designed to enhance the accountability of teachers and the governance of education in Northern Ghana. 

Public health crisis on the horizon: Healthcare

The cessation of critical programs that address maternal and child health, HIV/AIDS prevention, and malaria control has resulted in the inaccessibility of critical services to vulnerable populations. The training of healthcare personnel and the supply of essential medicines have impacted the Quality Services for Health (Q4H) Activity, which played a critical role in this sector. Similarly, the ASBC Activity has ceased its efforts to promote the adoption of priority “accelerator” and “gateway” behaviours in the areas of malaria, COVID-19, water, sanitation, and hygiene, as well as campaigns against child, early, and forced marriage and unions (CEFMU).

Education: A danger to school infrastructure and learning

Thousands of students are at risk of falling out of school as a result of the suspension of school funding programs in the education sector. Schools that previously relied on USAID assistance for infrastructure initiatives and educational materials will experiencing challenges that hitherto was taken care of through USAID Funding. 

Agriculture: The decline of food security and the livelihoods of farmers

The suspension of activities such as the MSR Activity will result in the loss of access to subsidised seedlings, fertilisers, and training programs for farmers in Northern Ghana. Many smallholder farmers will be unable to afford agricultural inputs as the rainfall season approaches, which could result in higher food prices and reduced crop yields.

The human cost: The effect of job losses on families in the NGO sector

The USAID funding suspension has resulted in the extensive job losses in Ghana’s NGO sector, particularly in Northern Ghana, where the majority of USAID-funded initiatives were located. These job losses are not just statistics. They represent real families now struggling to survive. 

Ghana's response and potential mitigation strategies

The President of Ghana is particularly concerned about the potential $78.2 million shortfall, which will have a detrimental effect on critical interventions, including malaria prevention, maternal and child health, family planning, reproductive health, nutrition, and the fight against HIV/AIDS. 

Ghana's excessive dependence on external aid has been exposed by the suspension of USAID funding, which has underscored the pressing necessity for sustainable domestic financing. This crisis also offers an opportunity to reconsider long-term sustainability. Ghana can achieve sustainable development by diversifying funding sources, empowering local industries, and developing robust domestic policies, thereby reducing its reliance on foreign aid. 

This crisis serves as a significant wake-up call for the NGO sector to explore alternative methods of resource mobilisation and diversify its funding sources. 

The author is Stephen Agbenyo, Ph.D. - Executive Director, Savana Signatures.
E-mail: steve@savsign.org