(Ecofin Agency) - The Trump administration's decision to suspend American aid to foreign countries for 90 days has caught many African governments off guard. In the West African Economic and Monetary Union (WAEMU), where USAID plays a crucial role in financing infrastructure, health, and humanitarian programs, the impact of this decision is expected to have a harsh impact.

Sahel: A Sudden Halt to Humanitarian Aid

In a region already struggling with war and instability, the suspension of U.S. aid feels like a new storm. Niger, Mali, and Burkina Faso were some of the largest beneficiaries of USAID funding. In 2024, these three countries alone received over $827 million out of the $1.264 billion committed by the United States, most of it funneled through USAID. For example, in 2024, USAID represented 99% of U.S. commitments. That year, $300 million was approved for Mali, $312 million for Burkina Faso, and $215 million for Niger, up from $266 million in 2023.

These commitments translated into concrete disbursements: $332 million to Niger, $254 million to Mali, and $225 million to Burkina Faso. These funds supported critical programs like food distribution, healthcare, agricultural development, and aid for displaced populations. With this freeze, a vital local aid network could run dry, further hindering the Sahelian nations’ ongoing battle against poverty and insecurity.

Senegal and Côte d’Ivoire: Allies Feeling the Impact

Though less affected by political instability, Senegal and Côte d'Ivoire had capitalized on their position as key U.S. partners. In 2024, Dakar received $209 million in commitments, with actual disbursements totaling $325 million. Côte d'Ivoire, on the other hand, had $115 million promised and $246 million disbursed, reflecting growing support.

These funds were allocated to various projects, including infrastructure development, SME financing, and strengthening education and healthcare sectors. With the suspension of U.S. funding, some projects could slow down or even come to a halt. The urban transport modernization program in Abidjan, partly funded by the Millennium Challenge Corporation (MCC), may be at risk. Senegal, which recently signed a third compact focused on the blue economy, had received at least $146 million last year for the program. In both countries, leaders of the regional economy, USAID had deployed no less than $283 million in 2024, mainly in health.

Benin and Togo: Vulnerable Economies at Risk

For countries like Benin and Togo, U.S. aid was modest but vital—$77 million and $36 million in commitments in 2024, respectively. These funds were crucial for sectors like healthcare, humanitarian aid, and infrastructure development.

Key sectors at risk

The U.S. funding was massive because it covered essential sectors. In 2024, American agencies allocated $525 million for health (40%), including programs for vaccination, malaria prevention, and HIV/AIDS. Another $459.7 million (35.4%) went into humanitarian aid, while $366 million through the MCC was directed mainly toward infrastructure development. About $290 million for humanitarian efforts largely benefited the Sahel region.

With nearly 940 ongoing projects, the sudden freeze in funding raises questions: which projects can continue without U.S. support? And which international actors will step in to fill the financial gap?