WASHINGTON, D.C. — The United States African Development Foundation (USADF) has officially terminated an $84,059 grant previously approved for a Nigerian business incubator program, as confirmed by the Department of Government Efficiency (DOGE) on Monday. The cancellation comes as part of a broader policy shift under Secretary of State Marco Rubio, who is implementing sweeping reforms aimed at restoring merit-based evaluations across U.S. diplomatic services.
According to an update published on DOGE’s website, the revoked funds were originally earmarked for “a business incubator for spa & wellness entrepreneurs in Nigeria.” The program was intended to support small and medium-sized enterprises (SMEs) within Nigeria’s growing wellness sector, part of a wider initiative to promote grassroots economic growth across the continent.
The USADF, an independent U.S. government agency founded to invest in African-owned and -led enterprises, has funded projects in over 40 African nations. Operating in 21 countries, the foundation says it has invested $117 million into more than 1,000 African SMEs, entrepreneurs, and organizations over the past five years—benefitting an estimated 7 million individuals.
While the foundation did not publicly elaborate on the reasons behind the grant’s termination, the announcement coincides with a notable policy pivot under the direction of the Elon Musk-chaired Department of Government Efficiency. The department, created to identify and eliminate inefficiencies in U.S. government operations, is now actively reevaluating international aid and diplomatic protocols in alignment with a new merit-focused doctrine spearheaded by Secretary Rubio.
DEI in the Crosshairs
In a separate update, DOGE revealed that Rubio has officially ended what it termed “discriminatory diversity, equity, and inclusion (DEI) mandates” in the U.S. Foreign Service. Under previous guidelines, Foreign Service Officers (FSOs) were assessed in part on their commitment to DEI practices—criteria that included the use of “non-gendered adjectives,” hosting of DEIA (Diversity, Equity, Inclusion, and Accessibility) training programs, and the promotion of racial and gender quotas at public events and embassy functions.
The department described how past evaluation metrics asked diplomats to focus international law enforcement cooperation on “racial and gender justice issues,” encourage local organizations to “promote DEIA training, programs, and lectures,” and participate in “annual DEIA awards ceremonies.”
Such practices, DOGE asserted, detracted from the core responsibilities of American diplomats and introduced “arbitrary immutable characteristics” into a system that should prioritize merit, skill, and achievement.
Secretary Rubio echoed these sentiments in a public statement, calling the reforms “important and historic.”
“Now our incredible Foreign Service Officers will be evaluated on true merit, not on arbitrary immutable characteristics,” he said. “We must always ensure that America’s representatives abroad are selected and promoted based on performance, not political ideology.”
Policy Reversal with Global Impact
The policy reversal marks a significant departure from the previous administration’s approach to diplomacy, which emphasized DEI frameworks as a central component of foreign policy. While supporters of DEI initiatives argue they enhance representation and cultural sensitivity in international relations, critics—including Rubio and the current leadership at DOGE—contend they compromise excellence by prioritizing identity over capability.
The Department of Government Efficiency, now under the stewardship of tech entrepreneur Elon Musk, has been tasked with auditing and restructuring federal agencies, grants, and global programs. The decision to cancel the Nigerian grant appears aligned with DOGE’s broader goal of streamlining government investments and reducing programs deemed “ideologically driven” or “inefficient.”
While the $84,059 grant constitutes a small fraction of USADF’s total investment portfolio, the move has already generated discussion among stakeholders in Africa and Washington. Some observers fear the decision may signal a reduced appetite for U.S. support of entrepreneurial ecosystems abroad, particularly those aligned with social or cultural initiatives.
Others, however, welcome the recalibration. “This is a necessary correction,” said a former U.S. ambassador familiar with the review process. “Foreign aid and diplomacy should be about strengthening partnerships and promoting mutual interests—not exporting domestic politics.”
USADF’s Role in Africa
Despite the grant termination, USADF continues to operate across the continent, where it has earned praise for directly funding grassroots initiatives often overlooked by larger aid organizations. Unlike traditional aid models that work through governments or major NGOs, USADF typically disburses funds directly to small businesses and community-based groups.
In Nigeria, USADF has historically supported agriculture, renewable energy, youth training, and women-led businesses. The now-cancelled spa and wellness incubator program had aimed to formalize and scale a growing segment of Nigeria’s informal economy, particularly among female entrepreneurs.
Whether similar programs will face future cuts remains to be seen. For now, the Biden administration’s previously DEI-heavy diplomatic strategies appear to be giving way to Rubio’s performance-based criteria and DOGE’s cost-efficiency mandates.
Reactions and Future Outlook
As of press time, neither the USADF nor the Nigerian Ministry of Trade and Investment had issued an official response to the grant’s cancellation.
Analysts note that while the policy changes are significant, they remain controversial. Critics argue that removing DEI criteria may limit diplomatic nuance and cultural competence in sensitive global regions, while proponents argue that a return to meritocratic standards ensures diplomatic excellence and fairness.
The developments also raise broader questions about the future of U.S. engagement with Africa, particularly in sectors like entrepreneurship, health, and education—areas historically championed by U.S. government-backed foundations.
As the dust settles, one thing is clear: the United States is recalibrating its approach to both diplomacy and development aid, with efficiency and meritocracy now taking center stage.
