Trump Cuts USAID, Okonjo-Iweala Fires Back: Africa Must Fund Itself

Trump Cuts USAID, Okonjo-Iweala Fires Back: Africa Must Fund Itself

The Director General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has challenged African leaders to move beyond dependency on foreign aid and instead harness the continent’s resources for sustainable development.…….READ MORE 

Speaking at the African Union headquarters in Addis Ababa, Ethiopia, Okonjo-Iweala emphasized the urgency of self-reliance in the wake of United States President Donald Trump’s decision to suspend the United States Agency for International Development (USAID) operations globally, citing financial mismanagement.

The former Nigerian finance minister highlighted the need for African governments to mobilize domestic resources and attract investments rather than relying on external assistance, which may no longer be forthcoming.

“Africa must change its mindset. Access to aid should now be seen as a thing of the past. We must focus on attracting investments and mobilizing our own resources,” Okonjo-Iweala stated.

She pointed out that Africa has approximately $250 billion in pension funds that could be strategically deployed to finance development projects instead of being invested abroad.

The WTO chief stressed the importance of strengthening African financial institutions such as the African Finance Corporation and Afrexim Bank to boost economic growth. She urged governments to properly capitalize these institutions rather than seeking external funding.

“Instead of always looking outside for help, we should strengthen our own institutions. Our development banks and financial institutions need better capitalization to expand their balance sheets and fund critical projects,” she added.

Okonjo-Iweala also underscored the need for value addition in Africa’s mineral resources to create jobs and enhance trade within the continent.

“Africa is rich in lithium, manganese, and copper—essential for electric batteries and vehicles. Instead of exporting raw materials for processing abroad, we must attract investments that add value locally,” she said.

She concluded by highlighting the need for Africa to expand its share of global trade and remove barriers that hinder economic growth.

“The only way Africa can finance itself is by growing its economy, adding value to its products, and trading more. At the WTO, we are committed to identifying and eliminating trade barriers that hinder Africa’s economic progress,” she stated.

With the suspension of USAID funding, Okonjo-Iweala’s message underscores a critical shift in Africa’s economic strategy—one that prioritizes self-sufficiency over dependency on foreign aid.