Ghana is entering a critical crossroads. What began as a sudden freeze on U.S. foreign assistance has halted some of the country’s most vulnerable development areas, including health, education, agriculture and governance. With a projected $156 million funding gap, Ghana’s hard-won progress is in jeopardy.

USAID in Ghana

Until recently, USAID contributed about $150 million per year to Ghana. The organization funded efforts in maternal and child health, HIV/AIDS and malaria treatment, education accountability and climate-smart agriculture programs through Feed the Future and other initiatives. Other key programs, such as the Strengthening Accountability in Ghana’s Education System (SAGES), have been suspended, putting the quality of education and support systems for thousands of students at risk.

The Resilience in Northern Ghana (RING II) Systems Strengthening Activity, a $21.9 million initiative being implemented (2022 to 2027), is one of the most severely impacted programs. This initiative aimed to improve nutrition, strengthen economic resilience and improve local governance systems in northern Ghana. It collaborated with 17 district assemblies to enhance health, education and social protection services delivery. Undoubtedly, the USAID has been a critical partner to Ghana for many years, enhancing the livelihoods of millions of Ghanaians with these funds.

Widespread Effects Across Sectors

In Ghana’s fisheries sector, USAID-backed plans for the first Marine Protected Area were abruptly canceled. The cancellation imperiled local economies dependent on small pelagic fish like sardines, anchovies and mackerel, which make up about 60% of local fish landings and serve as a primary protein source for millions.

In agriculture, programs that provided seed, training, climate-smart methods and agribusiness support to rural farmers have stopped, jeopardizing food security in regions already suffering from poverty and climate shocks.

Governance initiatives such as the Performance Accountability Activity (PAA) have also been paused, weakening transparency and citizen participation at the district level. While Ghana’s “Ghana Beyond Aid” agenda gains momentum, the sudden withdrawal of U.S. support highlights the difficulty of fulfilling development goals in fragile systems dependent on international partnership.

Local and Multilateral Allies Step In

John Mahama, President of the Republic of Ghana, has ordered urgent action. He has prompted the government to uncap the National Health Insurance Levy, raising GH¢4.2 billion ($300 million) to fill the USAID funding gap in health services. Some local and multilateral organizations have also stepped in to mitigate the impact. The African Development Bank (AfDB) and SEND Ghana have emerged as critical lifelines during this transition, leveraging financial power and policy advocacy.

In late 2023, the African Development Fund, the concessional arm of the AfDB, approved a $102.6 million budget support grant to Ghana’s Ministry of Finance. The funding stabilized public finances and supported critical health, agriculture and infrastructure sectors. Beyond emergency support, AfDB maintains an active project portfolio worth more than $800 million, financing 23 programs nationwide. By 2025, AfDB had committed to deepening investment in Ghana’s transport systems, private sector innovation and cybersecurity infrastructure, signaling a long-term vision beyond stopgap relief.

Meanwhile, SEND Ghana, a local nonprofit focusing on health equity and budget advocacy, has pressured Parliament to make pro-poor spending a national priority. SEND Ghana calls for the transparent use of revenue from the National Health Insurance Levy. It is pushing for those funds to plug gaps in maternal health, school feeding and public education left behind by USAID’s departure. By issuing regular policy briefs and engaging directly with lawmakers, SEND ensures the country’s most vulnerable citizens don’t fall through the cracks during this funding transition.

SEND Ghana applauded the government for uncapping the National Health Insurance Levy (NHIL) and allocating about $8.8 million to the National Health Insurance Fund (NHIF) in the 2025 budget. The organization described it as a significant step toward sustainable health care financing. It also viewed it as progress toward transparent, inclusive and accountable governance.

Final Remarks

An analysis by the Center for Strategic and International Studies (CSIS) noted that halting foreign aid weakens U.S. geopolitical influence and undercuts global security efforts. Foreign assistance isn’t charity, it’s strategic infrastructure.

– Dela Michel

Dela is based in Rockville, MD, USA and focuses on Good News for The Borgen Project.

Photo: Unsplash