U.S. Shifts from Aid to Trade in Africa, Sparking Uncertainty for Infrastructure Projects

Mon Jun 16 2025 14:07:05 GMT+0300 (Eastern European Summer Time)
U.S. Shifts from Aid to Trade in Africa, Sparking Uncertainty for Infrastructure Projects

The Trump administration's cuts to foreign assistance in Africa raise concerns over major infrastructure projects amidst a new focus on trade.


As the U.S. forges a new strategy prioritizing trade over aid in Africa, significant infrastructure projects like a crucial overpass in Abidjan face funding uncertainties, reflecting a broader shift in American foreign policy direction.

Article Text:

In a notable pivot of U.S. foreign policy, the Trump administration has significantly cut foreign aid, placing trade as the new core of its approach to Africa. This shift has created a precarious situation for numerous infrastructure projects across the continent. For instance, in Abidjan, Ivory Coast, locals are grappling with severe traffic challenges, but hope lies in the construction of a new overpass destined to alleviate congestion for an estimated 120,000 vehicles daily.

Previously, a billboard proudly proclaimed the project’s funding was courtesy of “the American people.” However, following substantial reductions in foreign assistance, the future of such projects now hangs in the balance, leading to the removal of the billboard altogether. As workers rush to finish the overpass, there is a palpable sense of urgency fueled by fears that financial support might soon disappear completely.

This new phase in U.S.-Africa relations was underscored by Troy Fitrell, the leading Africa official at the State Department, during a recent business summit in Abidjan. He stated, “Trade, not aid, is now the pillar of our policy in Africa,” as the U.S. pivots towards commercial diplomacy.

The U.S. has historically played a substantial role in financing development projects across Africa, but under the current administration, it has curtailed the operations of the U.S. Agency for International Development (USAID) and imposed tariffs affecting various trade agreements throughout the continent. This action departs from longstanding practices and raises concerns about the impact on international partnerships and anticorruption measures.

Fitrell's comments reflected an acute awareness that, by 2050, Africa is projected to house a quarter of the global population. Despite this potential, sub-Saharan Africa currently represents a mere 1 percent of U.S. trade in goods. The new strategy aims to address this disparity, promoting business ties while simultaneously leaving critical infrastructure projects in limbo.

With American companies beginning to sign deals primarily focused on trade, the landscape of U.S.-Africa relations is evolving rapidly, casting uncertainty over the future of aid-dependent projects in the region. The urgency to adapt is evident among local leaders and investors as they respond to an evolving geopolitical climate.

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