Many economies in Africa have seen significant growth recently, largely due to a shift in U.S. policy from aid towards trade, according to a senior State Department official. Rather than facing a downturn after the Trump administration reduced USAID funding, some African nations are flourishing through new diplomatic and trade strategies implemented at the start of Trump’s second term.
Currently, nine of the world’s twenty fastest-growing countries are in Africa, as noted by Frank Garcia, the assistant secretary for African Affairs. He stated that U.S. exports to sub-Saharan Africa surged by 23% to $22.6 billion in 2025, and the growth is expected to continue this year.
When the administration cut USAID by 83% the previous year, many anticipated disastrous outcomes, particularly in nations like Ethiopia and South Sudan that heavily rely on foreign aid. However, the situation turned out to be different, according to Anna Magyar Balducci from the Middle East Media Research Institute (MEMRI). She pointed out that Africa has shown unexpected resilience, with countries like Ethiopia even revising their growth forecasts upwards for 2026 despite funding cuts. The International Monetary Fund forecasts that sub-Saharan Africa will grow between 4.3% and 4.6% in 2026, outpacing Asia’s projected growth of roughly 4.1%. This growth is driven by investments in hydropower, construction, mining, and rising coffee exports.
Garcia emphasized that African economies are responding positively to the shift from aid to trade. The current administration’s strategy aims to promote private investment and sustainable growth by partnering with African countries rather than viewing them solely as aid recipients. He mentioned that U.S. embassies across Africa are working directly with the private sector to identify and reform policies that hinder trade and investment.
There’s a significant emphasis on privatization and commercial partnerships. Since the beginning of the current Trump administration, the Africa Bureau has successfully closed 37 transactions totaling $25.67 billion, with many more in the pipeline. These efforts target several key sectors, including energy, ICT, critical minerals, and agriculture.
Magyar Balducci criticized the traditional USAID model that often funds projects far removed from local needs, arguing that recognizing people as economic partners rather than mere recipients of charity could lead to real poverty reduction. She maintained that the transactional approach to aid, emphasizing trade and cooperative agreements, holds more promise for genuine progress on the continent.
In a bid to address health issues, the administration has signed numerous bilateral agreements worth over $24 billion in health funding with sub-Saharan African countries. These agreements aim to reduce dependence on U.S. funding while strengthening local health systems.
While the U.S. has begun phasing out funding for its anti-AIDS program, known as PEPFAR, due to perceived lapses in progress by South Africa, State Department officials suggest that the country should take greater responsibility for its own health programs. PEPFAR, they stress, was not meant to be a permanent fixture, and its success lies in empowering countries to sustain health initiatives independently.
Overall, it seems that Africa is navigating a complex landscape of change—transitioning from a dependency on international aid to a more vibrant and trade-focused economic model, though challenges remain.
