For decades, Ghana has been a significant recipient of foreign aid from the United States, particularly through the United States Agency for International Development (USAID). The livelihoods of millions of Ghanaians have been significantly enhanced by these funds, which have been instrumental in the enhancement of healthcare, education, agriculture, governance, and humanitarian programs.

In Northern Ghana, where development challenges are more pronounced due to higher poverty rates, food insecurity, and inadequate infrastructure, USAID’s interventions have been particularly transformative. Nevertheless, the United States government abruptly suspended USAID funding to countries, including Ghana, on January 20, 2025, necessitating the immediate cessation of critical development programs. The decision has resulted in the loss of thousands of jobs within the NGO sector, disrupting local economies, and left thousands of people without essential services. Numerous communities that had previously depended on USAID-funded healthcare services, agricultural programs, and educational initiatives are currently experiencing uncertainty and hardship.

The Contribution of USAID to Ghana’s Development

USAID has been a critical development partner in Ghana for many years, with an annual contribution of more than $150 million to a variety of programs that are designed to promote economic growth, social development, and improvement in governance. USAID-funded initiatives have been instrumental in Ghana’s progress, providing support to government agencies, NGOs, and private-sector partners. The impact of USAID in Ghana is evident in the following areas:

• Healthcare programs that have enhanced the health of mothers and children, disease prevention, and medical infrastructure.
• Education initiatives that have increased the availability of teacher training, school infrastructure, and literacy programs.
• Interventions in agriculture and food security that have facilitated the acquisition of improved seeds, markets, and climate-smart techniques for smallholder producers.
• Projects that have enhanced the efficacy and transparency of the public sector through governance and accountability.
• Waterborne maladies in rural communities, particularly in Northern Ghana, have been significantly reduced by clean water and sanitation initiatives.

Examples of Projects Funded by USAID

The funding suspension has resulted in the disruption of numerous USAID programs that were previously operational prior to the stop-work order. These initiatives were particularly beneficial in Northern Ghana, as they provided essential services in the areas of health, education, agriculture, and governance. The following are a few of the programs.

The Resilience in Northern Ghana (RING II) Systems Strengthening Activity, a $21.9 million initiative that was being implemented (2022 to 2027), is one of the most severely impacted programs. The objective of this initiative was to improve nutrition, strengthen economic resilience, and improve local governance systems in Northern Ghana. It collaborated with 17 district assemblies to enhance the delivery of health, education, and social protection services.

The Accelerating Social and Behavior Change (ASBC) Activity, a $29 million project launched in 2022, is another key initiative affected. The FHI 360 led consortium of partners, including Savana Signatures, MullenLowe, Norsaac and the Ghana Community Radio Network, supports the government of Ghana and the Ghana Health Service Health Promotion Division (GHS-HPD) to lead social and behavior change (SBC) efforts using tested mass media and community engagement strategies. With this support, the ASBC activity aims to contribute to an increase in the sustained adoption of health behaviors and practices, including timely use of health services and products, nationally and in the 17 USAID Zones of Influence in northern Ghana, where severe health disparities persist.

Additionally, agricultural programs have been dramatically affected. The Feed the Future Ghana Market Systems and Resilience (MSR) Activity, a $39.5 million initiative that was implemented from 2021 to 2026, was intended to provide smallholder farmers with access to commercial markets, enhanced seeds, and fertilizers. Farmers have been deprived of essential agricultural inputs as a result of the suspension of USAID’s financing, which has the potential to result in a decrease in crop yields and an intensification of food insecurity.
The educational sector has not been exempted. The Advancing Partnerships for Improved Learning (APIL) Activity, a $14.39 million programme, was designed to enhance low-fee private schools by providing financial support for infrastructure expansion, teacher training, and school leadership development. Many low-cost private schools that receive support and being revamped are at risk of degenerating into their old non-functional state due to the suspension of funding, which would result in thousands of students being deprived of quality education.

The Strengthening Accountability in Ghana’s Education System (SAGES) Activity, a $60 million programme that was initiated in 2023, is another critical education initiative that has been impacted. The programme was designed to enhance the accountability of teachers and the governance of education in 1,254 primary schools in Northern Ghana. The suspension of USAID assistance has resulted in the cessation of teacher capacity-building initiatives, which has resulted in a decrease in the quality of education and oversight.

Performance Accountability Activity (PAA), a $17.5 million initiative in the governance sector, was intended to enhance transparency and accountability in the public sector. Improved citizen participation in governance and local service delivery was achieved in many districts.

Several other governance programs have been suspended as a result of the suspension of funding from USAID.

A Public Health Crisis on the Horizon: Healthcare

The USAID halt work order has resulted in significant disruptions to the healthcare sector in Northern Ghana. The cessation of critical programs that address maternal and child health, HIV/AIDS prevention, and malaria control has resulted in the inaccessibility of critical services to vulnerable populations.

The training of healthcare personnel and the supply of essential medicines have impacted the Quality Services for Health (Q4H) Activity, which played a critical role in this sector. Similarly, the ASBC Activity has ceased its efforts to promote the adoption of priority “accelerator” and “gateway” behaviours in the areas of malaria, COVID-19, water, sanitation, and hygiene, as well as campaigns against child, early, and forced marriage and unions (CEFMU).

Education: A Danger to School Infrastructure and Learning

Thousands of students are at risk of falling out of school as a result of the suspension of school funding programs in the education sector. Schools that previously relied on USAID assistance for infrastructure initiatives and educational materials are currently experiencing challenges that hitherto was taken care of through USAID Funding. The quality of education in rural areas has been impacted by the suspension of programmes such as the SAGES and APIL, which were designed to promote teacher accountability and low-cost private institutions.

Agriculture: The Decline of Food Security and the Livelihoods of Farmers

The suspension of activities such as the MSR Activity will result in the loss of access to subsidised seedlings, fertilisers, and training programs for farmers in Northern Ghana. Many smallholder farmers will be unable to afford agricultural inputs as the rainfall season approaches, which could result in higher food prices and reduced crop yields.

The Human Cost: The Effect of Job Losses on Families in the NGO Sector

The USAID funding suspension has resulted in the extensive job losses in Ghana’s NGO sector, particularly in Northern Ghana, where the majority of USAID-funded initiatives were located. This is one of the most devastating consequences. These job losses are not just statistics. They represent real families now struggling to survive. Thousands of Ghanaians, including healthcare workers, agricultural extension officers, local government consultants, social workers, and administrative personnel, were directly employed by USAID-funded programs prior to the suspension. Furthermore, thousands of additional individuals indirectly benefited, including vendors, small business owners, and service providers who provided goods and services to USAID-funded initiatives. NGOs that are responsible for the implementation of these initiatives have been compelled to reduce their workforce as a result of the suspension of USAID funding.
There is no doubt that these job losses have and will precipitate a cascade of financial instability for families, particularly in Northern Ghana, where alternative employment opportunities are scarce. The financial burden of rent, school fees, and medical expenses is currently being felt by a significant number of impacted employees.

Ghana’s Response and Potential Mitigation Strategies.

The government of Ghana has recognised the gravity of the crisis and is currently in the process of identifying alternative funding sources to maintain the operation of certain programs. Dr. Cassiel Ato Forson, the Finance Minister, was directed by President John Dramani Mahama to promptly resolve the funding deficit that resulted from the suspension of USAID’s international funding program. The President is particularly concerned about the potential $78.2 million shortfall, which will have a detrimental effect on critical interventions, including malaria prevention, maternal and child health, family planning, reproductive health, nutrition, and the fight against HIV/AIDS. This shortfall threatens the availability of antiretroviral drugs, testing, and prevention programs. Will these endeavours be adequate to entirely supplant USAID’s financial support, despite the government’s actions?

Ghana’s excessive dependence on external aid has been exposed by the suspension of USAID funding, which has underscored the pressing necessity for sustainable domestic financing. Although foreign aid has been instrumental in Ghana’s development, this crisis offers an opportunity to reconsider long-term sustainability.

The sudden cessation of USAID funding has resulted in a humanitarian and economic crisis. Millions of individuals have been rendered vulnerable as a result of the closure of critical projects, significant employment losses, and diminished access to essential services. The emphasis must transition to the development of long-term resilience as the world, and Ghana in particular, navigate this crisis. Ghana can achieve sustainable development by diversifying funding sources, empowering local industries, and developing robust domestic policies, thereby reducing its reliance on foreign aid. The present crisis serves as a significant wake-up call for the NGO sector to explore alternative methods of resource mobilisation and diversify its funding sources.

BY:

Stephen Agbenyo, Ph.D

Executive Director,

Savana Signatures.

steve@savsign.org