IMANI’s Franklin Cudjoe Weighs in on Trump’s USAID Funding Cut Threat
Franklin Cudjoe, Founding President of IMANI Africa, has weighed in on U.S. President Donald Trump’s threat to dismantle the United States Agency for International Development (USAID), calling for a thorough review of the global aid industry.
In a statement, Mr Cudjoe argued that instead of scrapping aid entirely, efforts should be made to reform the system, focusing on initiatives that enhance trade, skills training, and technology transfer.
He emphasized the need to eliminate bureaucratic inefficiencies and middlemen who consume a significant portion of aid funds before they reach intended beneficiaries.
Referencing his longstanding critique of foreign aid in past articles published in major global newspapers such as The Wall Street Journal and The Telegraph (UK), Mr Cudjoe highlighted concerns raised by renowned economist Jeffrey Sachs, who estimated that large portions of aid funds are spent on consultants, emergency relief, and debt servicing, with little clarity on how much actually benefits the poor.
He also quoted Rwandan President Paul Kagame, who previously criticized the inefficiencies in aid-funded projects, noting that a significant share of funds is allocated to administrative costs rather than poverty reduction.
“Prof. Sachs is right about tougher seeds but not about more aid. By his own calculation, ‘out of every dollar of aid given to Africa, an estimated 16% went to consultants from donor countries, 26% went into emergency aid and relief operations, and 14% went into debt servicing.’ He could not account for how much of the remaining 44% got siphoned off by corrupt officials, nor could he explain why $400 billion dollars of aid over the last 30 years has left the average African poorer.
“Rwandan President Paul Kagame told Ugandan journalist Andrew Mwenda in April, ‘There are projects here worth $5 million and when I looked at their expenses, I found that $1 million was going into buying these cars, each one of them at $70,000. Another $1 million goes to buy office furniture, $1 million more for meetings and entertainment, and yet another $1 million as salaries for technical experts, leaving only $1 million for the actual expenditure on a poverty-reducing activity. Is this the way to fight poverty?” he stated.
Mr Cudjoe in his post further reiterated his position that African leaders should focus on structural economic reforms rather than relying on aid. He advocated for promoting free markets, removing bureaucratic barriers to business creation, strengthening property rights, and enforcing contract laws, according to him these measures would unlock Africa’s entrepreneurial potential.
Mr Cudjoe’s remarks align with broader debates on the effectiveness of foreign aid, with critics arguing that it often fosters dependency and inefficiency rather than sustainable development.
