Sub-Saharan African Economies Accelerate Amid U.S. Trade‑First Policy Shift

FIRST ON FOX: Many African economies are accelerating rapidly, as the Trump administration has shifted its focus from aid to trade, according to a senior State Department official speaking to Fox News Digital.

Although some African nations were predicted to face economic hardship after a sharp reduction in USAID funding, the continent has experienced unprecedented growth, attributed to the Commercial Diplomacy Strategy launched at the start of President Donald Trump’s second term.

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Shoppers in Pretoria’s Central Business District. (Leon Sadiki/Bloomberg via Getty Images)

Garcia noted that African economies are responding positively to the shift from aid to trade, with U.S. exports to sub‑Saharan Africa rising 23% in 2025 to $22.6 billion and continuing to grow this year.

When USAID funding was reduced by 83% early last year, analysts warned of catastrophic consequences for economies heavily dependent on foreign assistance such as Ethiopia, South Sudan, and Malawi. Yet the predicted collapses did not occur, according to Anna Mahjar‑Barducci, project director at the Middle East Media Research Institute (MEMRI).

Oil refinery in Ibeju Lekki district, Nigeria. (Toyin Adedokun/AFP via Getty Images)

‘This is no minor detail,’ she added. ‘For decades we were told that without international aid Africa would collapse. Now that aid is genuinely drying up, much of the continent is not only avoiding collapse but accelerating. This aligns with a long‑standing African economic school of thought that argues aid is not the solution, and in many cases, it is part of the problem.’

Assistant Secretary Garcia explained that the strategy entails fostering economic acceleration in Africa by driving private investment and sustainable growth, treating African nations as capable commercial partners rather than aid recipients.

He added that U.S. embassies in Africa work directly with the private sector to identify policies, laws, and regulations that constrain trade and investment, and that they collaborate with partner governments to devise practical reforms, identify responsible officials, and determine where technical assistance can support implementation.

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Flags fly outside the USAID building in Washington, D.C., February 1, 2025. (Reuters/Annabelle Gordon)

The strategy appears to be working, with Garcia noting that the Bureau of African Affairs has facilitated 37 commercial transactions since the start of the Trump administration, totaling $25.67 billion, with more pending. Embassies across the continent are actively working to close hundreds of additional deals, focusing on energy (24%), ICT (19%), critical minerals and mining (11%), aerospace (8%), agriculture (8%), and infrastructure (8%).

Mahjar‑Barducci criticized USAID’s approach, stating that aid directed to governments rather than markets funds projects designed in Brussels, Rome, or Washington that often fail to meet local needs. Poverty cannot be alleviated by treating people as passive charity recipients; it can be reduced by recognizing them as entrepreneurs, workers, and economic partners capable of building their own prosperity.

The Bishoftu International Airport in Ethiopia is projected to become Africa’s largest aviation hub upon completion. (Geng Xinning/Xinhua via Getty Images)

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Mahjar‑Barducci argued that trade, rather than aid, is effective, noting that the Trump administration’s transactional approach—offering access to critical minerals or health data in exchange for funding—should not be dismissed as merely cynical. Unconditional transfers have long been a flaw in the traditional aid model, as they remove incentives for governmental reform and can entrench officials responsible for persistent poverty.

The America First Global Health Strategy has been introduced, with a senior State Department official stating that the administration has signed 34 bilateral global health memoranda of understanding, securing over $24 billion in new health funding, including $14.3 billion in U.S. assistance and $9.6 billion in co‑investment from recipient countries.

The official added that 24 of these memoranda were signed with sub‑Saharan African nations, with the aim of sustaining life‑saving care, building resilient healthcare systems, reducing reliance on U.S. taxpayers, and strengthening country ownership.

Aid workers transport bags of yellow lentils at a joint operation conducted by USAID, Catholic Relief Services, and the Relief Society of Tigray in Mekele, Ethiopia (June 16, 2021). (Jemal Countess/Getty Images)

The administration has also decided to cut funding for the U.S. anti‑AIDS program known as PEPFAR. Africa has been severely affected by the HIV/AIDS pandemic, and UNAIDS reports that South Africa records the world’s highest infection rate.

According to a State Department official, South Africa must share responsibility for reductions in aid, as the United States has initiated a phased drawdown of PEPFAR programming there, citing the South African government’s failure to make demonstrable progress on policy requests. The United States repeatedly warned that PEPFAR funding would be terminated unless President Trump’s concerns were addressed.

‘PEPFAR was never intended to be permanent,’ the official added. ‘Its success is measured by countries’ ability to sustain and build upon these gains. South Africa, a middle‑income nation, is fully capable of supporting its own health programs.

Fox News Digital reached out to the South African government, but received no response.

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