Ghana’s Mahama Warns US On Aid Cuts Impact

GHANAIAN President John Dramani Mahama has cautioned that the United States risks losing global influence due to sweeping aid reductions, as other major powers step in to fill the void. Speaking at the Munich Security Conference, Mahama remarked, ‘As bridges are burning, new bridges are being formed.’

Impact on health services

In comments reported by Devex, Mahama highlighted that Ghana has had to cut $156 million from economic growth, education, and healthcare programmes due to funding freezes under US President Donald Trump’s administration. The most severe impact, he noted, is on health services, with $78 million slashed from initiatives supporting child healthcare, maternity services, and HIV treatment. The cuts directly affect the availability of antiretroviral drugs previously provided by PEPFAR (the US President’s Emergency Plan for AIDS Relief).

Despite the challenges, Mahama framed the crisis as an opportunity for Africa to embrace self-reliance. He stressed that the continent must focus on enhancing food production and reducing trade barriers, positioning itself for long-term sustainability. ‘It sends a signal to Africa that the time has come for us to be more self-reliant, especially regarding support for the most vulnerable,’ he asserted.

Mahama also underscored the geopolitical ramifications of the US retreat from international aid. ‘One thing the US will lose is that soft power it has wielded in the world. Many nations appreciate the assistance they receive, but they are not reliant on just one partner,’ he said. Without directly naming China, he implied that other nations were ready to step in to provide economic and developmental support.

‘We will continue to cooperate with other countries. That’s why we have a multipolar world,’ he added.

Ghana, which received nearly $150 million in US bilateral development assistance in 2024, now faces tough financial decisions. However, Mahama remains optimistic, stating that the shift away from dependency could accelerate the establishment of a self-sustaining African economy.

Impact on AfCFTA

When asked if Trump’s aid cuts might expedite the long-awaited African Free Trade Area, Mahama responded: ‘Definitely it will. If that aid stops coming, we will make the necessary investments to improve agricultural productivity, ensuring food security rather than relying on external handouts.’

The Munich Security Conference, which ended on February 14, and was attended by over 200 government leaders and ministers, also focused  on the broader geopolitical implications of US policies. Discussions included Trump’s proposed private negotiations with Russia over the Ukraine war, increased US defence spending demands, and potential global trade conflicts.

At the same forum, Spain’s Foreign Minister, José Manuel Albares, addressed the ramifications of the Trump administration’s efforts to dismantle USAID, the United States’ key international development agency. Albares questioned whether Europe was prepared to fill the gap left by US aid cuts.

‘Funds have been cut off, programmes are shutting down. Is Europe ready to step in and take over the soft power influence that USAID once had? I hope so,’ he said.

He added that Spain had already taken action by tripling its development aid and doubling emergency assistance to Africa.

Mahama’s remarks reinforce the growing global shift, where developing nations are seeking alternative partnerships while pushing for economic independence amid reduced Western aid.