There has been widespread concern from experts and different economic sectors following Elon Musk’s comments on X that the US Agency for International Development (USAID), the main US agency for foreign aid, is a criminal organisation that is being run by radical lunatics. Musk further added that he was considering the future of US AID.
International relations expert Dr Noluthando Phungula from the University of KwaZulu-Natal said it would be catastrophic if USAID was stopped. “And this is on multiple fronts including but not limited to public health, humanitarian efforts and even economic development across the globe. Cessation of assistance would be a major setback, undoing much of the progress made. The USAID funds the majority of health programs in the underdeveloped world.”
Phungula added that South Africa also receives aid across various sectors. “Mainly public health and technical assistance to enhance public health. A portion of about 17% of HIV treatment is secured by USAID through the President's Emergency Plan for AIDS Relief (PEPFAR). President Trump has always been clear on his local and foreign policy stance. I believe he will continue to use the Agency to influence other state players.”
Phungula said she believes there will be further budget cuts and foreign aid programs. “On the other hand, Africa has an opportunity to rethink self-sufficiency and dependence on the US. A 17% loss of aid is not the end of the world. However, it means those that steal have far less to steal from. We hope and pray that those in power continue to prioritise treatment for our people in the midst of foreign aid cuts.”
University of KwaZulu-Natal academic and political analyst Siyabonga Ntombela said that like many African countries, South Africa has strong relations with USAID and has always cooperated with the agency. “It's disappointing to hear the comments from Musk, who is South African born. If USAID is stopped, the impact on South Africa will not be significant because it will be felt. Over 2 million South Africans are on ARVs because of the agency through the PEPFAR. There are other global healthcare companies that continue to supply SA. The problem is that the South African government now has more than 2 million people expecting to get the same ARVs they used to get via PEPFAR. I think the agency will be replaced by another healthcare agency that will be a pro-Elon-Trump position.”
Political analyst Zakhele Ndlovu said that USAID has helped many countries, including South Africa, to address challenges such as the scourge of HIV and other issues. “This move is going to have a huge negative impact on NGOs that assist poor communities. On the other hand, some people view these aid programs as undesirable because they make developing countries more dependent on first-world countries. Maybe this is the time for the 'patriotic' bourgeoisie/tenderpreneurs to make themselves useful and invest in programmes designed to uplift poor communities.”
Unisa Professor Emeritus of International Law Andre Thomashausen noted that the new Trump era has begun debunking many falsehoods, starting with putting an end to gender denialism and now by suspending the political interference in foreign countries by USAID. “USAID has been a vehicle for US political interventionism especially in the Global South. USAID is largely responsible for the violent and unconstitutional coup in Ukraine in 2014 that provoked the breakaway of Ukraine's Eastern provinces and the devastating military confrontation that commenced in 2022.”
Thomashausen added that in Mozambique, USAID has funded a private game farm owned by an American billionaire for years, despite the country having over 8 million children suffering from chronic malnutrition. “Trump's decision to suspend and review the USAID empire will be welcomed in the Global South.”
Farming association TLU SA general manager, Bennie van Zyl, said that he takes note of US President Donald Trump’s announcement that he will halt all future financial aid to South Africa. “It is important to acknowledge that South Africa, as a country, has long received support from the international community, including the United States, which has provided financial aid for years to promote economic growth and social development. Unfortunately, this aid is often swallowed up by corruption and rarely reaches the people who truly need it.”
BUSINESS REPORT