Several African economies are experiencing accelerated growth following a policy shift by the Trump administration that prioritized trade and private investment over traditional foreign aid, according to a senior State Department official.
Despite initial forecasts of economic contraction in some nations after the pullback of U.S. Agency for International Development (USAID) funding, many African economies have instead demonstrated unprecedented growth. This economic expansion is largely attributed to the Commercial Diplomacy Strategy, introduced early in President Trump's second term. Currently, nine of the world's 20 fastest-growing economies are located in Africa, Assistant Secretary for the Bureau of African Affairs Frank Garcia told Fox News Digital.
"African economies are responding positively to the shift from aid to trade," Garcia stated. "In 2025, U.S. exports to sub-Saharan Africa increased by 23% to $22.6 billion. And continue to grow this year."
When USAID funding was reduced by 83% early last year, dire predictions of economic collapse for nations heavily reliant on foreign donors, such as Ethiopia, South Sudan, and Malawi, were widespread. However, contrary to these expectations, the continent has shown remarkable resilience. Ethiopia, for instance, revised its 2026 growth forecasts upward following the funding adjustments.
International Monetary Fund (IMF) projections indicate that Sub-Saharan Africa's economic growth is expected to be between 4.3% and 4.6% in 2026, surpassing Asia's projected growth of around 4.1%. Key drivers of this growth include substantial investments in hydroelectric power, construction, mining, and expanding coffee exports.
Anna Mahjar-Barducci, Project Director at the Middle East Media Research Institute (MEMRI), commented that the continent's positive economic performance challenges long-held assumptions about Africa's dependence on international aid. "For decades, we were told that without international aid Africa would collapse. Now that aid is genuinely drying up, much of the continent is not only avoiding collapse — it is accelerating," she said. Mahjar-Barducci advocates that aid, in many instances, may hinder rather than help development.
Assistant Secretary Garcia elaborated on the strategy's operational framework. "We see this economic acceleration in Africa. In order to best capitalize on it, the United States is focused on driving private investment, sustainable growth in terms of partnership and treating African nations not as aid recipients, but as capable commercial partners," he explained.
U.S. embassies across Africa are collaborating directly with the private sector to identify and address policy, legal, and regulatory barriers to U.S. trade and investment. These efforts involve working with partner governments to implement practical reforms and identify responsible officials for their execution.
The Bureau of African Affairs has facilitated 37 commercial transactions totaling $25.67 billion in value since the beginning of the current administration. Additional transactions are being reported, and embassies are working to close hundreds more. The primary sectors involved include Energy (24%), ICT (19%), Critical Minerals and Mining (11%), Aerospace (8%), Agriculture (8%), and Infrastructure (8%).
Mahjar-Barducci criticized the traditional model of USAID, suggesting that aid channeled through governments often supports projects designed without sufficient regard for local economic needs. "Poverty cannot be overcome by treating people as permanent recipients of charity. Poverty can be reduced by recognizing people as entrepreneurs, workers and economic partners capable of building their own prosperity," she stated.
The administration's approach also extends to global health initiatives. Thirty-four bilateral global health Memoranda of Understanding (MOUs) have been signed, representing over $24 billion in new health funding, with more than $14.3 billion from the U.S. and over $9.6 billion in co-investment from recipient countries. Twenty-four of these MOUs were established with sub-Saharan African nations, aiming to sustain critical healthcare services, build robust health systems, reduce reliance on American taxpayers, and enhance country ownership.
The administration has also initiated a phased drawdown of funding for the U.S. anti-AIDS program, PEPFAR, in South Africa. This decision follows South Africa's perceived failure to make demonstrable progress on policy requests from the U.S. administration regarding the program. A State Department official noted that PEPFAR was intended to be a temporary initiative, with success measured by a country's ability to sustain gains independently. South Africa, as a middle-income country, is considered capable of supporting its own health programs.