How President Mahama Is Bridging the $156 Million USAID Gap
As of July 13, 2025, Ghana is navigating a new era of development independence after the U.S. permanently froze and dissolved USAID operations earlier this year. In this update, we explore how President John Mahama’s administration has mobilized domestic funding, secured alternative international partnerships, and launched bold reforms in health, agriculture, and education to bridge the $160 million USAID gap. Discover what’s changed since January, how Ghana is breaking the cycle of foreign aid dependency, and what it means for the future of African-led development.
CULTURE
Leslie E. Jones
7/13/20252 min read
In January 2025, the U.S. government stunned the global development community by suspending all USAID funding for 90 days—impacting dozens of countries, including Ghana. The order was signed by President Donald Trump on January 20, 2025, as part of a broader realignment of American foreign assistance under the “America First” policy.
For Ghana, the freeze immediately halted approximately $156 million in funding that supported essential sectors like healthcare, education, and agriculture. But within days, Ghana’s new leadership, under President John Dramani Mahama, initiated a strategic and bold response.
Here’s what Mahama has done...
President Mahama’s Four-Part Response Strategy
Upon taking office, President Mahama issued a clear directive: the health, education, and food security of Ghanaians must not be compromised by geopolitical decisions made abroad.
Here’s how he’s taking action:
1. Emergency Reallocation of Domestic Funds
President Mahama directed Finance Minister Cassiel Ato Forson to reallocate domestic resources from less urgent budget lines to immediately support:
Antiretroviral drug supplies for HIV/AIDS patients
Malaria prevention programs
Maternal and child health services
Nutrition and reproductive health programs
The goal: prevent service interruptions and safeguard lives in the most vulnerable communities.
2. Engaging Global Partners (World Bank, Global Fund, AfDB)
Ghana is actively negotiating with:
The Global Fund
The World Bank
The African Development Bank
These institutions are being asked to help Ghana bridge the funding gap with emergency grants and low-interest financing. Mahama’s administration is also engaging the international donor community to keep development progress on track.
3. Strengthening Agricultural Resilience
Recognizing the role of USAID in food security, Mahama launched new funding initiatives through the Ministry of Food and Agriculture to:
Distribute improved seeds and fertilizer
Support smallholder farmers
Expand local food markets
This pivot is designed to protect rural livelihoods and reduce reliance on external subsidies.
4. Health Sector Emergency Procurement Task Force
The Ministries of Finance and Health have assembled a rapid-response task force to ensure:
Continued procurement of critical medicines
Stable supply chains for medical equipment
No interruptions in life-saving treatments, particularly in Northern Ghana
What’s Next?
As of July 13, 2025 USAID has not been restored. Forcing Ghana to become strategic and not reliant. Mahama’s government is focused on ensuring that:
No clinics close due to funding shortages
No children are turned away from schools
No farmer is forced out of planting season
Whether the U.S. aid freeze will be lifted remains unclear. But Mahama’s actions have shown Ghana—and the global community—that local leadership can rise to the occasion, even when global systems falter.
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