By Stephen AGBENYO,(PhD)
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).
The livelihoods of millions of Ghanaians have been significantly enhanced by these funds, which have been instrumental in the enhancement of healthcare, education, agriculture, governance and humanitarian programmes.
In northern Ghana where development challenges are more pronounced due to higher poverty rates, food insecurity and inadequate infrastructure, 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 programmes.
The decision has resulted in the loss of thousands of jobs within the NGO sector, disrupting local economies, and left thousands of people without essential services. Numerous communities that had previously depended on USAID-funded healthcare services, agricultural programmes and educational initiatives are currently experiencing uncertainty and hardship.
The 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 US$150million to a variety of programmes that are designed to promote economic growth, social development and improvement in governance. USAID-funded initiatives have been instrumental in Ghana’s progress, providing support to government agencies, NGOs, and private-sector partners.
The impact of USAID in Ghana is evident with the healthcare programmes helping to enhance the health of mothers and children, disease prevention and medical infrastructure.
Also, the contribution of USAID has helped to develop various educational initiatives that have increased the availability of teacher training, school infrastructure and literacy programmes.
More so, USAID interventions in agriculture and food security have facilitated the acquisition of improved seeds, markets and climate-smart techniques for smallholder producers, which has gone long way to boost agribusiness and improved livelihoods among rural farmers.
The USAID projects have enhanced the efficacy and transparency of the public sector through governance and accountability, where policy-makers and some stakeholders have been held accountable for the positions held.
With regards to water-borne maladies in rural communities, particularly in northern Ghana, the intervention of USAID funds and projects have significantly helped to reduce water-borne diseases with the clean water and sanitation initiatives.
Thanks to USAID, funds and projects have helped some rural communities to access potable drinking water, which has curbed the epidemic and the spread of water-borne diseases.
Examples of projects funded by USAID
The funding suspension has resulted in the disruption of numerous USAID programmes that were previously operational prior to the stop-work order. These initiatives were particularly beneficial in northern Ghana, as they provided essential services in the areas of health, education, agriculture and governance. The following are a few of the programmes.
The Resilience in Northern Ghana (RING II) Systems Strengthening Activity, a US$21.9million initiative that was being implemented (2022 to 2027), is one of the most severely impacted programmes.
The objective of this initiative was to improve nutrition, strengthen economic resilience and improve local governance systems in northern Ghana. It collaborated with 17 district assemblies to enhance the delivery of health, education and social protection services.
The Accelerating Social and Behaviour Change (ASBC) Activity, a US$29million project launched in 2022, is another key initiative affected.
The FHI 360 led consortium of partners, including Savana Signatures, MullenLowe, Norsaac and the Ghana Community Radio Network, supports the Government of Ghana and the Ghana Health Service Health Promotion Division (GHS-HPD) to lead social and behaviour change (SBC) efforts using tested mass media and community engagement strategies.
With this support, the ASBC activity aims to contribute to an increase in the sustained adoption of health behaviours and practices, including timely use of health services and products, nationally and in the 17 USAID Zones of Influence in northern Ghana, where severe health disparities persist.
Additionally, agricultural programmes have been dramatically affected. The Feed the Future Ghana Market Systems and Resilience (MSR) Activity, a US$39.5million initiative implemented from 2021 to 2026 was intended to provide smallholder farmers with access to commercial markets, enhanced seeds and fertilisers.
Farmers have been deprived of essential agricultural inputs as a result of the suspension of USAID’s financing, which has the potential to result in a decrease in crop yields and an intensification of food insecurity.
The educational sector has not been exempted. The Advancing Partnerships for Improved Learning (APIL) Activity, a US$14.39million programme, was designed to enhance low-fee private schools by providing financial support for infrastructure expansion, teacher training and school leadership development.
Many low-cost private schools that receive support and were being revamped are at risk of degenerating into their old non-functional state due to the suspension of funding, which would result in thousands of students being deprived of quality education.
The Strengthening Accountability in Ghana’s Education System (SAGES) Activity, a US$60million programme that was initiated in 2023, is another critical education initiative that has been impacted.
The programme was designed to enhance the accountability of teachers and the governance of education in 1,254 primary schools in northern Ghana. The suspension of USAID assistance has resulted in the cessation of teacher capacity-building initiatives, which has resulted in a decrease in the quality of education and oversight.
Performance Accountability Activity (PAA), a US$17.5million initiative in the governance sector, was intended to enhance transparency and accountability in the public sector. Improved citizen participation in governance and local service delivery was achieved in many districts.
Several other governance programmes have been suspended as a result of the suspension of funding from USAID.
Healthcare
The USAID halt work order has resulted in significant disruptions to the healthcare sector in northern Ghana. The cessation of critical programmes 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
Thousands of students are at risk of falling out of school as a result of the suspension of school funding programmes in the education sector. Schools that previously relied on USAID assistance for infrastructure initiatives and educational materials are currently experiencing challenges that hitherto were taken care of through USAID funding.
The quality of education in rural areas has been impacted by the suspension of programmes such as the SAGES and APIL, which were designed to promote teacher accountability and low-cost private institutions.
Agriculture
The suspension of activities, such as the MSR Activity, will result in the loss of access to subsidised seedlings, fertilisers and training programmes 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 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. This is one of the most devastating consequences. These job losses are not just statistics.
They represent real families now struggling to survive.Thousands of Ghanaians, including healthcare workers, agricultural extension officers, local government consultants, social workers and administrative personnel, were directly employed by USAID-funded programmes prior to the suspension.
Furthermore, thousands of additional individuals indirectly benefitted, including vendors, small business owners and service providers who provided goods and services to USAID-funded initiatives.
NGOs that are responsible for the implementation of these initiatives have been compelled to reduce their workforce as a result of the suspension of USAID funding.
There is no doubt that these job losses have and will precipitate a cascade of financial instability for families, particularly in northern Ghana, where alternative employment opportunities are scarce. The financial burden of rent, school fees and medical expenses is currently being felt by a significant number of impacted employees.
Ghana’s response and potential mitigation strategies
The Government of Ghana has recognised the gravity of the crisis and is currently in the process of identifying alternative funding sources to maintain the operation of certain programmes. Dr. Cassiel Ato Forson, the Finance Minister, was directed by President John Dramani Mahama to promptly resolve the funding deficit that resulted from the suspension of USAID’s international funding programme.
The President is particularly concerned about the potential US$78.2million 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.
This shortfall threatens the availability of antiretroviral drugs, testing and prevention programmes.Will these endeavours be adequate to entirely supplant USAID’s financial support, despite the government’s actions?
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. Although foreign aid has been instrumental in Ghana’s development, this crisis offers an opportunity to reconsider long-term sustainability.
The sudden cessation of USAID funding has resulted in a humanitarian and economic crisis. Millions of individuals have been rendered vulnerable as a result of the closure of critical projects, significant employment losses and diminished access to essential services.
The emphasis must transition to the development of long-term resilience as the world, and Ghana in particular, navigates this crisis. Ghana can achieve sustainable development by diversifying funding sources, empowering local industries and developing robust domestic policies, thereby reducing its reliance on foreign aid. The present 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 writer is the Executive Director of Savana Signatures in Tamale. He can be reached on 0244421532 [email protected]
