Ghana’s $1.55 Billion from USAID (2015-2024): But What Happens When the Funds Run Dry?

For nearly a decade, USAID has poured $1.55 billion into Ghana, fueling progress in healthcare, education, agriculture, and infrastructure. This financial support has played a critical role in shaping Ghana’s economic development, strengthening key sectors, and improving livelihoods. But with global aid priorities shifting and donor funds gradually reducing, an urgent question looms:

In many ways, this is a positive step toward self-sufficiency, but can Ghana truly sustain itself without USAID, or will it falter when the funding is gone or significantly cut?

The U.S. Foreign Aid Shift: A New Reality for Ghana

Ghana’s reliance on USAID funding is deeply tied to shifting U.S. foreign aid policies, which have fluctuated based on the priorities of different administrations. During the Trump administration, the “America First” policy led to significant cuts in foreign aid, emphasizing that U.S. assistance should serve immediate American interests rather than long-term development goals. This meant reduced funding for global health, governance, and infrastructure projects in countries like Ghana, forcing many nations to rethink their dependence on U.S. financial assistance.

Although the Biden administration reversed some of these cuts, restoring funding to critical areas, the broader trend remains the same: U.S. foreign aid is becoming more selective. Future administrations could adopt a more isolationist or budget-conscious approach, further reducing aid or reallocating funds toward security alliances, trade benefits, or geopolitical influence. If that happens, Ghana could face a sudden financial gap in essential sectors, potentially weakening healthcare, education, and economic stability.

A History of Heavy Reliance on USAID

Ghana’s relationship with USAID dates back to the early 1960s, when the U.S. government, under President John F. Kennedy, prioritized economic cooperation with developing nations. Over the years, USAID has played a central role in Ghana’s economic evolution:

• In the 1960s, USAID helped finance major infrastructure projects, including the Akosombo Dam, which remains Ghana’s primary source of hydroelectric power.
• During the 1980s economic crisis, USAID contributed to stabilizing inflation, privatizing state enterprises, and implementing public sector reforms.
• By the 1990s, USAID had become an essential partner in democracy-building, economic expansion, and education reform.

Even today, USAID remains a key driver of Ghana’s development, injecting significant resources into health, agriculture, education, and governance.

Over the past decade, USAID has poured approximately $1.55 billion into Ghana, funding critical sectors such as healthcare, education, agriculture, governance, and infrastructure. These funds have been more than just numbers on a spreadsheet; they have built schools, stocked hospitals, supported farmers, and driven economic policies. In 2017, Ghana saw its highest disbursement at $195 million, while 2021 marked the lowest at $90 million, mainly due to shifts in global aid priorities and the pandemic’s impact.

Below is a yearly breakdown of USAID disbursements to Ghana:

• 2015: $171,049,863
• 2016: $182,287,928
• 2017: $195,042,449
• 2018: $159,765,287
• 2019: $158,035,389
• 2020: $92,419,773
• 2021: $90,525,270
• 2022: $137,691,036
• 2023: $168,807,301
• 2024: $190,206,874

Ghana’s partnership with USAID stretches back over six decades, with support dating as far back as the early 1960s, when the U.S. government, under President John F. Kennedy, prioritized economic cooperation in developing nations. Over the years, USAID helped finance major national projects such as the Akosombo Dam, which remains the backbone of Ghana’s electricity supply. 

In the 1980s, during Ghana’s severe economic downturn, USAID played a crucial role in stabilizing inflation, privatizing state enterprises, and implementing public sector reforms. By the 1990s, it had become a key development partner, channeling resources into democracy-building, economic expansion, and education reform.

Today, USAID remains one of Ghana’s top development partners, with recent disbursements focusing on health, agriculture, water supply, and governance. In 2024 alone, USAID injected $190 million, ranking Ghana 19th in Sub-Saharan Africa in total funding received and 12th within its income group. The bulk of this funding went into basic healthcare ($50 million), agriculture ($46 million), maternal and child health ($14.7 million), and water and sanitation ($13.9 million).

While phasing out aid dependency is a necessary step toward economic independence, the transition must be carefully managed. Without a concrete strategy for revenue generation, the abrupt removal of USAID support could disrupt key national programs, weaken health and education systems, and create a potential fiscal shortfall exceeding $2 billion over the next decade.

To avoid such a crisis, Ghana must act now, by ramping up domestic resource mobilization, improving tax collection, and boosting local industries. Policymakers must also explore alternative financing models such as public-private partnerships, foreign investment incentives, and industrial diversification. 

While USAID has been an essential part of Ghana’s development, the country must now focus on building a future where its growth is self-sustaining, resilient, and independent of external aid. However, the question remains, how quickly can Ghana transition without causing economic shocks, and what immediate steps must be taken to ensure stability in the face of declining donor support?

A substantial portion of USAID funding has gone into Ghana’s healthcare system, supporting essential programs such as malaria control, maternal and child health services, and the provision of life-saving medications for HIV/AIDS patients. More than 30% of USAID’s contributions have been directed toward strengthening hospitals, expanding immunization programs, and improving emergency response capacities. 

In the education sector, USAID has funded teacher training, school infrastructure development, and literacy programs, ensuring that more Ghanaian children have access to quality education. The agricultural sector has also benefited significantly, with nearly 20% of USAID funding invested in improving food security, supporting smallholder farmers, and increasing agricultural yields through modernized farming techniques.

Beyond these social sectors, USAID has played a crucial role in supporting Ghana’s economic policies, trade facilitation, and microfinance programs that enable small and medium-sized enterprises to grow. 

Funding for governance and democracy-building initiatives has been instrumental in strengthening Ghana’s electoral processes, enhancing transparency in public administration, and reducing corruption. These contributions have positioned Ghana as a stable democracy in West Africa, creating a favorable environment for investment and business expansion.

Regional and Income Group Rankings

In 2024, Ghana ranked 19th out of 43 countries in Sub-Saharan Africa in terms of USAID funding, securing approximately $190 million, which falls below the regional average of $250 million. While this places Ghana among the mid-tier recipients, it is far behind Ethiopia, which topped the region with $1.2 billion, reflecting Ethiopia’s significant humanitarian and development needs. 

At the lower end, Guinea-Bissau ranked 43rd, receiving considerably less funding. Within its income group, Ghana ranked 12th out of 45, also falling below the $260 million average. 

The top recipient in this category, Ukraine, received $5.4 billion, largely driven by geopolitical and conflict-related support, while Kiribati ranked 45th, receiving minimal funding. Ghana’s position in both the regional and income-group rankings highlights its moderate reliance on USAID funding—benefiting from substantial support but not among the most aid-dependent nations. 

The data suggests that Ghana continues to attract development assistance, particularly in sectors like health, education, and economic programs, but remains less reliant on aid compared to some of its regional and economic peers

Key Sectors Benefiting from USAID Support

Healthcare: Strengthening Ghana’s Medical Infrastructure

USAID has played a crucial role in Ghana’s healthcare sector, channeling over 30% of its total funding toward strengthening medical infrastructure, disease prevention, and essential health services. This financial support has been instrumental in expanding primary healthcare facilities, increasing access to essential medicines, and improving the quality of medical training for professionals. In 2024 alone, USAID allocated $50 million to bolster healthcare delivery, ensuring that millions of Ghanaians—especially those in underserved communities—receive the medical care they need.

One of USAID’s most impactful contributions has been in the fight against malaria, a disease that has long plagued Ghana. Through the provision of mosquito nets, antimalarial drugs, and public education initiatives, the agency has helped reduce malaria-related fatalities. Additionally, USAID has been a key partner in HIV/AIDS prevention and maternal health programs, funding life-saving treatments, expanding prenatal and postnatal care, and improving emergency response services. These interventions have significantly contributed to lowering infant mortality rates and enhancing maternal care, safeguarding the health of future generations.

Agriculture & Food Security: Empowering Ghana’s Farmers

Agriculture remains the lifeblood of Ghana’s economy, employing nearly 50% of the workforce and sustaining millions of livelihoods. Recognizing its significance, USAID has invested heavily in boosting agricultural productivity, with $46 million allocated in 2024 alone to modernize farming practices, strengthen food security, and enhance market access for local producers. These investments have been instrumental in equipping smallholder farmers with the necessary resources to thrive, including improved seeds, fertilizers, and irrigation systems that increase yields and reduce post-harvest losses.

Beyond productivity, USAID has championed climate-smart agriculture, helping farmers adapt to Ghana’s increasingly unpredictable weather patterns. By promoting sustainable farming techniques and resilience strategies against droughts and floods, the agency has ensured that agricultural production remains steady despite environmental challenges. Additionally, USAID has worked to expand Ghana’s role in global trade by training farmers and agribusinesses to meet international market standards, thereby increasing exports and boosting the economy. These efforts have not only strengthened Ghana’s agricultural sector but have also laid the groundwork for a more resilient and self-sustaining food system.

3. Water & Sanitation: Expanding Access to Clean Water

Access to clean water and proper sanitation is a fundamental pillar of public health, and USAID has been instrumental in improving these essential services for millions of Ghanaians. In 2024 alone, USAID allocated $13.9 million to expand access to safe drinking water and sanitation infrastructure, particularly in underserved communities. A significant portion of this investment went into developing boreholes, wells, and water purification systems to ensure that both rural and urban populations have access to clean and safe water sources.

Beyond water supply, USAID has worked to improve sanitation and hygiene practices across Ghana. The construction of modern toilet facilities and hygiene education initiatives has helped reduce the prevalence of waterborne diseases, promoting better overall public health. Additionally, USAID dedicated $13.43 million to Water, Sanitation, and Hygiene (WASH) projects, reinforcing efforts to provide sustainable solutions for improved sanitation and clean water accessibility. These investments have not only enhanced health outcomes and disease prevention but have also contributed to building resilient communities that can sustain themselves beyond foreign aid.

Key Sectors and Top Activities Supported by USAID in 2024

USAID funding in 2024 prioritized:

• Basic Health ($50.01 million)
• Agriculture ($46.22 million)
• Maternal and Child Health, Family Planning ($14.7 million)
• Water Supply and Sanitation ($13.91 million

The most significant USAID-backed activities in 2024 included:

• $13.98 million for Global Health Supply Chain procurement and management
• $13.43 million for Enhancing Water, Sanitation, and Hygiene (WASH) projects
• $9.99 million for Trade and Investment initiatives
• $8.31 million for Supply Chain Technical Assistance
• $8.14 million for Farming Support Activities

A Future Without USAID: Can Ghana Sustain Itself Without USAID?

While phasing out aid dependency is a necessary step toward economic independence, the transition must be strategically managed. If USAID funding were to decline abruptly, Ghana could face:

🚨 Disruptions in essential services, especially in healthcare and education. A reduction in foreign aid could lead to a decline in vaccine availability, shortages in essential drugs, and a slowdown in maternal and child health programs. Without alternative funding sources, healthcare infrastructure improvements could stall, affecting millions.

🚨 Reduced agricultural productivity, affecting food security. Ghana’s smallholder farmers, who have long relied on USAID-backed initiatives for access to improved seeds, irrigation systems, and training, may struggle to maintain yields. Without this support, food prices could rise, increasing the burden on households already struggling with inflation.

🚨 A fiscal shortfall exceeding $2 billion over the next decade. The government’s budget would be significantly impacted, creating funding gaps for social programs, infrastructure projects, and economic reforms.

Building a Self-Sustaining Economy

With foreign aid shrinking, Ghana faces a defining moment. If USAID funding disappears, can the country sustain itself without economic turmoil? Without a solid plan, essential services could collapse, food production could decline, and the government might struggle to fill a $2 billion funding gap over the next decade.

To avoid this, Ghana must act now. Strengthening domestic revenue generation by fixing tax collection and curbing evasion will ensure critical sectors like healthcare and education remain funded without reliance on donors. At the same time, Ghana must diversify beyond cocoa and gold, investing in manufacturing, technology, and value-added industries to build long-term economic stability.

The private sector must step up—Public-Private Partnerships (PPPs) can attract investment in infrastructure, energy, and digital transformation. Meanwhile, cutting government waste, inefficiency, and corruption is critical to sustaining development without external aid.

Ghana can’t afford to wait. The time for half-measures is over. With bold policies, smart investments, and fiscal discipline, the country can stand on its own and build an economy that works for Ghanaians, by Ghanaians.

So What!

While USAID has played a crucial role in Ghana’s development, its potential exit should serve as a wake-up call a reminder that Ghana must build a resilient economy that thrives on internal resources, innovation, and strategic partnerships. The transition will not be easy, but with sound economic policies, improved governance, and a commitment to sustainable development, Ghana can emerge stronger, capable of financing its own future.

For now, however, the reality remains: without USAID’s support, the next few years will be financially tough. The government must act swiftly to mitigate the impact, ensuring that critical services continue while laying the groundwork for long-term economic independence.

Source:  https://foreignassistance.gov/cd/ghana/2024/disbursements/1