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Exclusive: Rwanda stands as one African country able to withstand Trump’s aid cuts

Simon Osuji by Simon Osuji
March 28, 2025
in Business
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Exclusive: Rwanda stands as one African country able to withstand Trump’s aid cuts
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The money received during the period under review, was used primarily for health, administrative duties, education, and agriculture.

The year prior, the country received $178 million. Currently, in 2025, so far, Rwanda has received $38 million in US funding.

A look at the top-funded sector by US disbursements to Rwanda shows that the figure ($86 million), was 65% of Rwanda’s overall health budget for the year which according to the Ministry of Finance was FRW187.9 billion ($130 million).

Rwanda's allocation for US funds recieved in 2024

This suggests that aid has been huge for the East African country in some of its most important sectors.

However, given the country’s commitment to sustainable growth, Rwanda has been touted as one of the few countries in Africa that would be able to mitigate the effects of Donald Trump’s aid cut to African countries.

This point was highlighted by the Senior Vice-President of Zipline, who stated during an exclusive with Business Insider Africa that it is time for Africa to “ move on and start talking about what comes in its (USAID) place.”

Rwanda’s longtime strategy for handling foreign aid is one of the main reasons it is in a position to lessen the effects of USAID’s suspension.

Rwanda has been intentional in deciding how aid is used in line with national goals, in contrast to many other aid-reliant nations.

“Rwanda comes to mind, Rwanda has long been in the driver’s seat when it comes to receiving and stirring aid,” Burton points out.

Rather than allowing donors to dictate how funds are used, Rwanda has designed its aid programs to support its own development goals.

“Rwanda is one place where they were accepting aid, but determining where they wanted to spend it and how they wanted to spend it,” Burton explained.

This autonomy has enabled Rwanda to maximize the efficacy of foreign aid, ensuring that resources are directed towards areas of true national interest.

Because of this strategic approach, Rwanda has regularly outperformed many of its African peers in areas such as healthcare, infrastructure, and digital innovation.

The country has made significant investments in technology-driven solutions, such as Zipline’s drone delivery system, to ensure efficient access to medical supplies.

This form of forward-thinking administration has reduced Rwanda’s vulnerability to external shocks, such as the removal of US funding.

Beyond its handling of aid, Rwanda’s leadership has been instrumental in fostering resilience. Burton believes that some African governments are more than capable of compensating for the loss of U.S. funding.

“How we will recover really depends on the country, there are many places on the continent where the governments are more than capable of picking up the slack,” she states.

Among these, Rwanda stands as a model of self-reliance. “I think we are going to see countries like Rwanda come out of this with a very clear vision of what they need to do and a plan to pursue it,” Burton adds.

Caitlin Burton

The suspension of US aid provides a chance for African countries to rethink their reliance on foreign finance and take more control of their development strategies.

Burton highlights that African leaders can lead, but previous aid systems may have stifled significant change.

“African leadership is closer than we give them credit for, I think it was the structure of the system that was preventing change,” according to the SVP of Zipline.

For Rwanda, this change may not be a burden, but rather a chance to strengthen its position as a pioneer in sustainable development. Rwanda illustrates how an African country can take charge of its development, regardless of external financial decisions.

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