WASHINGTON, D.C. — The United States African Development Foundation (USADF) has terminated $51 million in development grants across several African nations, according to an announcement released Monday by the U.S. Department of Government Efficiency (DOGE). The decision comes amid a sweeping effort to combat waste, fraud, and inefficiency in U.S. government spending abroad.
DOGE, which is chaired by tech entrepreneur Elon Musk, disclosed the move in a post on social platform X, revealing the cancellation of previously approved funds targeting grassroots economic development projects across the continent. The projects ranged from mango-drying facilities and pineapple juice marketing to wellness incubators and digital tools for African farmers and entrepreneurs.
“The U.S. government has a responsibility to ensure every dollar spent overseas provides measurable value,” DOGE stated. “These grants did not meet that standard.”
Breakdown of Cancelled Grants
Among the rescinded financial allocations, the largest include:
- $246,217 for mango drying facilities in Ivory Coast
- $239,738 for marketing pineapple juice in Benin
- $229,296 for promoting 100% organic shea butter in Burkina Faso
Additional projects halted include:
- $99,566 to boost yogurt production in Uganda
- $84,059 for a spa and wellness business incubator in Nigeria
- $50,000 for dragon fruit cultivation training in Senegal
- $48,406 for a WhatsApp marketing chatbot in Kenya
The funding, which was initially approved through USADF channels, had targeted small-scale enterprises, local cooperatives, and agricultural initiatives aimed at improving livelihoods and fostering sustainable economic growth.
About USADF’s Operations in Africa
Founded by the U.S. Congress in 1980, the USADF is an independent government agency that provides seed capital and technical support to grassroots organizations, social enterprises, and small and medium-sized enterprises (SMEs) across Africa. The foundation operates in 21 countries and has awarded grants in more than 40 nations over the years.
According to its website, USADF focuses on empowering marginalized groups—particularly smallholder farmers, youth, women and girls, and people with disabilities. Its model emphasizes community ownership, sustainability, and local impact. In the last five years alone, the foundation claims to have invested $117 million into over 1,000 organizations, reaching more than 7 million people.
However, DOGE’s recent announcement suggests a shift in how such programs are evaluated, with increased emphasis on performance, oversight, and strategic alignment with U.S. interests.
The Musk-Led Efficiency Drive
Since taking the helm at DOGE, Elon Musk has been at the center of a broader U.S. government initiative to reassess and overhaul federal spending patterns. The department, established to eliminate inefficiency and ideological bias in public spending, has taken a critical view of international development programs deemed redundant, poorly managed, or politically motivated.
While Musk has not publicly commented on the USADF decision, the department’s communications point to a systematic reevaluation of grants and subsidies that lack rigorous metrics of success or long-term sustainability.
DOGE has also taken a firm stance against development projects influenced by ideological agendas, advocating instead for data-driven decision-making and measurable outcomes.
Implications for African Development
The abrupt withdrawal of funding is likely to spark concern among African partners and beneficiaries, many of whom rely on U.S. development grants to launch or sustain micro-enterprises. The canceled grants targeted sectors that often operate on thin margins and are particularly vulnerable to shifts in external financing.
In Nigeria, the now-terminated $84,059 grant was set to fund a business incubator supporting spa and wellness entrepreneurs—part of an effort to formalize a growing but largely informal sector. In Uganda, yogurt producers were expecting a near $100,000 boost to improve production capacity and access to local markets.
Critics argue that cutting such funds could undermine years of capacity-building and economic empowerment, particularly among women-led and youth-run businesses.
However, proponents of the decision argue that U.S. taxpayer funds must be safeguarded and focused on high-impact, high-accountability projects.
“This is a hard but necessary recalibration,” said a former USAID official speaking on condition of anonymity. “Too often, good intentions aren’t matched by measurable results. We need development strategies that deliver outcomes, not optics.”
Rising Scrutiny of U.S. Foreign Aid
The cancellation of these grants is the latest chapter in an evolving debate over the role of the United States in international development. As global economic pressures intensify and domestic priorities take center stage, U.S. foreign aid programs are under increasing scrutiny from both sides of the political spectrum.
The Biden administration’s early emphasis on equity, climate, and social entrepreneurship in aid delivery has met with pushback from newer voices within the government who call for leaner, more results-driven models of engagement.
DOGE’s actions suggest that a shift toward fiscal conservatism and operational efficiency may now be influencing U.S. policy abroad. Whether this recalibration results in better or fewer partnerships across Africa remains to be seen.
Looking Ahead
As of Monday evening, USADF had not issued a public response to DOGE’s announcement. It remains unclear whether the canceled funds will be redirected to other development efforts or returned to the U.S. Treasury.
Meanwhile, African organizations affected by the termination are reportedly seeking clarification and exploring alternative funding sources. Several local agencies in West and East Africa expressed disappointment, warning that the cuts could stall business training, disrupt production schedules, and derail long-term projects.
Still, the U.S. Department of Government Efficiency insists the decision is part of a longer-term strategy to ensure effectiveness, transparency, and value for money in all international engagements.
“Taxpayer dollars must be protected, especially in overseas initiatives where accountability is difficult to enforce,” the department said in a follow-up post. “This is about impact—not image.”
