- BIST10012,151-0.94%
- USD49.220.00%
- EUR55.21+0.28%
- GOLD4,197.90+0.17%
- INTEREST37.00%-1.00
- BITCOIN81,724-2.33%
- October 13, 202617°
- BIST10012,151-0.94%
- USD49.220.00%
- EUR55.21+0.28%
- GOLD4,197.90+0.17%
- INTEREST37.00%-1.00
- BITCOIN81,724-2.33%
- October 13, 202617°
Trump's trade-over-aid policy spurs economic growth in Africa
US State Department officials announced that economic growth has accelerated in many African countries after the Trump administration cut USAID funds and shifted to commercial diplomacy. While exports to Sub-Saharan Africa rose by 23 percent, the IMF predicts the region will outpace Asia in 2026.
Frank Garcia, Deputy Assistant Secretary in the Bureau of African Affairs at the US State Department, said that the shift from an aid-focused policy to a trade-focused policy during President Donald Trump's second term has brought unprecedented growth to African economies.
Noting that 9 of the world's 20 fastest-growing economies are in Africa, Garcia said, "African economies are responding positively to the shift from aid to trade. In 2025, US exports to Sub-Saharan Africa rose by 23 percent to $22.6 billion and continue to grow this year."
Anna Mahjar-Barducci, Project Director at the Middle East Media Research Institute (MEMRI), emphasized that the doomsday scenarios predicting the collapse of aid-dependent economies like Ethiopia, South Sudan, and Malawi after an 83 percent cut in USAID funds did not materialize.
Mahjar-Barducci said, "The African continent has proven far more resilient than expected. Ethiopia revised its 2026 growth forecasts upward despite the funding cuts. According to International Monetary Fund (IMF) projections, Sub-Saharan Africa is expected to grow between 4.3 and 4.6 percent in 2026, outpacing Asia, which is forecast to grow around 4.1 percent."
Mahjar-Barducci noted that the growth is driven by massive hydroelectric investments, construction, mining, and increased coffee exports, and said that contrary to the decades-old narrative that Africa would collapse without international aid, the continent did not collapse when aid dried up but instead accelerated.
Commercial diplomacy strategy
Garcia said the US is focused on leveraging this momentum by encouraging private sector investment, building sustainable growth partnerships, and viewing African countries as capable trade partners, not aid recipients.
Garcia explained that embassies work directly with the private sector to identify policies, laws, and regulations that restrict trade and investment, then develop reforms with partner governments. He noted that during the current Trump administration, 37 commercial transactions have been completed, totaling $25.67 billion, with hundreds more in progress.
The sectors with the most transactions included energy at 24 percent, information and communication technologies at 19 percent, critical minerals and mining at 11 percent, and aviation, agriculture, and infrastructure each at 8 percent.
Mahjar-Barducci argued that when aid flows to governments, it finances projects designed in Brussels, Rome, or Washington that do not address the real needs of local economies, and that poverty can be reduced by recognizing people as entrepreneurs, workers, and economic partners.
Mahjar-Barducci said the Trump administration's more transactional approach—providing funds in exchange for access to critical minerals or citizens' health data—should not be seen merely as cynical, and that unconditional transfers remove the incentive for reform and empower those responsible for underlying poverty.
A new health model
A senior State Department official said that under the administration's "America First Global Health Strategy," 34 bilateral memoranda of understanding have been signed, 24 with Sub-Saharan African countries, representing over $24 billion in new health financing—$14.3 billion in US aid and $9.6 billion in co-investment from recipient countries.
The official said these agreements are designed to sustain lifesaving care, build resilient health systems, reduce dependence on American taxpayers, and strengthen country ownership.
The US has decided to phase out the PEPFAR program in South Africa. The official stressed that the decision was made because South Africa failed to make significant progress on the administration's policy demands, and that as a middle-income country, South Africa has the capacity to support its own health programs. No response was received from the South African government on the matter.
Stay Updated with The Turkiye Times
Subscribe to be informed about special news, developments and announcements. We will keep you informed.
By signing up, you agree to our Privacy Policy
