State Department officials announced that the shift from aid to trade in Africa policy during President Donald Trump's second term has triggered an economic boom on the continent. Deputy Assistant Secretary for African Affairs Frank Garcia said this change has brought unprecedented growth to African economies.
Garcia noted that 9 of the world's 20 fastest-growing economies are now in Africa, saying, 'African economies are responding positively to the shift from aid to trade.' The official added that US exports to sub-Saharan Africa rose 23 percent in 2025 to $22.6 billion, and growth has continued this year.
Anna Mahjar-Barducci, Project Director at the Middle East Media Research Institute (MEMRI), stressed that the doomsday scenarios predicting the collapse of countries like Ethiopia, South Sudan, and Malawi after an 83 percent cut in USAID funds did not materialize. Mahjar-Barducci said, 'The African continent has proven far more resilient than expected. Ethiopia revised its 2026 growth forecasts upward despite the funding cuts.'
IMF growth projection
Mahjar-Barducci reported that according to International Monetary Fund (IMF) projections, sub-Saharan Africa is expected to grow between 4.3 and 4.6 percent in 2026, surpassing Asia, which is forecast to grow about 4.1 percent. She noted that the growth is driven by massive hydroelectric investments, construction, mining, and increased coffee exports, and that contrary to the decades-long narrative that Africa would collapse without international aid, the continent has accelerated in a period when aid has dried up.
Garcia said the US is focused on leveraging this momentum by encouraging private sector investment, building sustainable growth partnerships, and viewing African countries as capable trade partners, not aid recipients.
$25.67 billion in deals
Garcia explained that US embassies work directly with the private sector to identify barriers restricting trade and investment and develop reforms with partner governments. He noted that 37 commercial deals have been completed during the current Trump administration, totaling $25.67 billion, with hundreds more in progress. The sectors with the most deals included energy at 24 percent, information and communication technologies at 19 percent, critical minerals and mining at 11 percent, and aviation, agriculture, and infrastructure each at 8 percent.
Mahjar-Barducci argued that when aid flows to governments, it finances projects designed in Brussels, Rome, or Washington that do not meet the real needs of local economies. She stated that poverty can be reduced by recognizing people as entrepreneurs, workers, and economic partners.
New health financing model
A senior State Department official announced that the administration has signed 34 bilateral memoranda of understanding under the 'America First Global Health Strategy,' including 24 with sub-Saharan African countries. The official said these agreements represent over $24 billion in new health financing, with $14.3 billion in US aid and $9.6 billion in co-investment from recipient countries.
These memoranda are designed to sustain life-saving care, build resilient health systems, reduce dependence on American taxpayers, and strengthen country ownership.
The US has decided to phase out the PEPFAR program in South Africa. The official stressed that the decision was made because South Africa failed to make significant progress on the administration's policy demands, and that as a middle-income country, South Africa has the capacity to support its own health programs. No response was received from the South African government on the matter.
