Restructuring USAID and Africa’s Path to Self-Sufficiency: Combating Corruption and Financial Drain

By Mary Alorh

The ongoing restructuring at USAID, one of the largest sources of U.S. government aid, has the potential to impact numerous governments worldwide that rely on this assistance to address the needs of their citizens.

For countries heavily dependent on foreign aid, a 90-day freeze can feel like an eternity, especially when it hampers the delivery of vital services and interventions that citizens depend on.

One of the most significant programs under USAID is the President’s Emergency Plan for AIDS Relief (PEPFAR), which continues to play a critical role in the global fight against the HIV/AIDS pandemic.

Countries across Africa are feeling the effects of this freeze. In 2023, USAID’s estimated distribution to Sub-Saharan Africa exceeded US$12 billion, supporting critical sectors such as healthcare, food security, education, and security reforms.

Millions of Africans are now facing distress as governments scramble to put measures in place to mitigate the freeze’s effects on vital sectors and affected individuals.

Strengthening Africa’s Internal Capacity to Combat Corruption

However, there is a compelling case for Africa to strengthen its internal capacity to fund and sustain these essential sectors. One of the biggest barriers to Africa’s progress is corruption, which has become a major drain on the continent’s resources.

In 2023, reports revealed that Africa was losing more than US$140 billion annually due to corruption, with illicit financial flows accounting for over US$60 billion of this total.

Nigeria, the continent’s most populous country, is especially affected, with losses of approximately US$18 billion each year due to corruption and financial crimes. This amount, which accounts for around 3.8 percent of Nigeria’s 2022 GDP, is often funneled through corrupt procurement deals, and while the theft of such sums is swift, recovery can take years.

Multinational corporations operating in Africa frequently exploit these corruption loopholes, depriving governments of the revenues they are rightfully owed.

To tackle this issue, it is critical for African nations to form stronger alliances and cooperative efforts to combat corruption, which is steadily eroding the foundation of the continent’s economies. The political will to hold public officials accountable is paramount for recovering stolen assets and ensuring transparency.

According to the 2024 Corruption Perception Index (CPI), Sub-Saharan Africa has the lowest regional score, with an average of just 33. South Sudan and Somalia ranked the lowest of all surveyed countries, while even previously high-performing countries like Ghana have seen rising corruption in key sectors.

To address this, African governments must prioritize the strengthening of institutions such as the judiciary and anti-corruption agencies, ensuring they are equipped to combat corruption effectively.

With concerted effort and the eradication or reduction of corruption, Africa has the potential to self-sustain its development and build a stronger, more resilient future for its citizens.

Mary Alorh is Director of Administration at DefSEC Analytics Africa Ltd., and is an expert in Gender, Youth, and Peace & Security initiatives in West Africa.