The recent decision by the United States to halt foreign aid to Africa for 90 days, following President Donald Trump's order to review aid allocations, has sent shockwaves through the continent.
Economists are now advising Uganda to use this pause as a crucial opportunity to reassess its dependency on foreign assistance and push for sustainable economic policies.
Trump’s decision to freeze aid is being viewed as part of a broader foreign policy strategy to better align U.S. aid with national interests.
The freeze comes at a time when US contributions, particularly to Uganda, represent a significant portion of the country’s economic aid.
In 2024, Uganda received approximately $82 million for humanitarian assistance, $47.83 million for HIV commodities, and additional funds for various health and food security programs.
Economists argue that while the freeze may be short-term, it presents a unique opportunity for Uganda to take bold steps toward reducing reliance on foreign aid, especially amid ongoing corruption scandals within public institutions.
Julius Mukunda, executive director of the Civil Society Budget Advocacy Group, emphasized the need for a strategic shift in governance.
"It is time for Uganda to stop acting like beggars," Mukunda said. "The government must step in and address corruption, reduce unnecessary expenditures, and begin focusing on self-sufficiency."
The aid freeze could act as a catalyst for Uganda to explore alternative revenue sources and bolster its economy through increased trade, support for local businesses, and attracting foreign direct investment.
While the disruption is unsettling, it is viewed by some as a silver lining—a chance to break free from aid dependency and reimagine the country’s future economic trajectory.
