African Nation Loses $17M in U.S Funding as Elon Musk’s DOGE Tightens Belt
The Elon Musk-led DOGE cancelled the $17 million project intended to provide tax policy advice to the country.
Musk, a key figure in DOGE, took to his X account to announce the move, emphasizing the department’s mission to reduce government waste and increase the efficiency of U.S. federal operations.
“Among many other things, DOGE today cancelled a $17M project to provide tax policy advice to Liberia. Why would anyone think that this is a good use of YOUR tax money?” Musk queried.
The cancellation highlights the department’s broader aim of trimming expenditures, which has raised concerns in countries like Liberia that rely on international aid and expertise.
Since the inception of DOGE, Musk claims to have cut over $1 billion in daily expenses and has targeted various taxpayer-funded programs, particularly those promoting diversity, equity, and inclusion (DEI).
Although Elon Musk did not provide specific details about the cancelled tax project in Liberia, it is likely linked to previous initiatives funded by international organizations, such as the World Bank.
One such project, the Governance Reform and Accountability Transformation (GREAT) Project, was approved by the World Bank in June 2024.
Funded by the International Development Association (IDA) with a credit of $30 million, the GREAT project aimed to enhance access to digitally provided public services, increase tax revenues, and improve government transparency and accountability in the African nation.
The project benefits several key institutions, including ministries, regulatory bodies, and commissions involved in finance, development, telecommunications, revenue, and anti-corruption efforts.
The United States is the largest donor to the IDA, having pledged $4 billion as of 2021. This funding reflects the U.S.’s longstanding commitment to supporting governance and development reforms in countries like Liberia
In 2023, the U.S. allocated $59.9 billion in economic aid, with Ukraine receiving the largest share of $14.4 billion through USAID.
Other recipients included Jordan ($770 million), Yemen ($359.9 million), and Afghanistan ($332 million).
Key federal departments such as USAID, the State Department, and the Treasury distributed these funds.
However, the Trump administration’s freeze on foreign aid has disrupted critical programs, particularly in Africa.
The shutdown of USAID has left many countries, particularly in Africa, in a state of uncertainty, with critical development projects stalled.
The funding freeze has impacted sectors like HIV/AIDS treatment and education, creating gaps that are difficult for local governments to fill, this has also disrupted efforts aimed at improving the lives of vulnerable populations.
