Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Politics

Analysts back Trump’s USAID cuts in Africa, say increased trade will better benefit continent’s poor

by February 26, 2025
February 26, 2025

The key to Africa’s future is in increasing trade with the U.S., not in receiving aid from it, a message key analysts told Fox News Digital in the wake of President Donald Trump’s foreign aid freeze.

‘U.S. trade dollars exchanged with Africa massively exceed aid dollars granted,’ South African-based Frans Cronje, an advisor for the Yorktown Foundation for Freedom, told Fox News Digital. 

Some $11 billion of USAid funds were reportedly spent in Africa in 2024, but trade between the U.S. and Africa during the same period was seven times higher – $71.6 billion, according to the Office of the U.S. Trade Representative.

Cronje said ‘the idea of helping people with aid may be admirable, but in practice achieves little in Africa by way of addressing the structural factors that underpin poverty. Trade, on the other hand, is a more viable route by which the U.S. can build strong relationships with Africa, and is also in line with President Donald Trump’s style of diplomacy through transactions.’

Cronje elaborated, saying, ‘Aid acts as a subsidy to bad governments, and thereby keeps them in power despite an absence of reform – whereas trade requires reforms and improving governance to be sustainable.’

Following the Trump administration’s policy change, Ledama Olekina, senator for Kenya’s Narok County, added, ‘We don’t need aid in Kenya; we can do it on our own!’ Posting on X on Jan. 28, Olekina wrote, ‘Relying on aid from the West limits our opportunities to be industrious and creative. From now on, we must learn to live within our means, eliminate corruption, and instill a spirit of patriotism in our citizens. Together, let’s build a brighter future for our country. Thank you @realDonaldTrump and @USAID it’s time!’

Anna Mahjar-Barducci, a senior research fellow at the Middle East Media Research Institute, told Fox News Digital that aid ‘does not help the needy, as foreign aid keeps the needy always being needy … international aid doesn’t go directly to the starving population, but to governments. The direct consequence is the growth of the role of the State in the economy of the recipient country, which does not offer incentives to (the) private sector’s development.’

She added, ‘Foreign aid has been financing central governments, which (has) ended up promoting statism, and discouraging the creation of an entrepreneurial culture. As a result, government bureaucrats became richer, and regular citizens got poorer. As British economist Peter Bauer put it: ‘Aid is a process by which the poor in the rich countries subsidize the rich in poor countries.’

Aid has other negative effects, according to Mahjar-Barducci, who added, ‘aid is providing governments, many of which are dictatorships, in Africa with freely usable cash, which not only discourages the creation of an entrepreneurial culture, but it also discourages steps toward peace in war-torn areas.

‘While many Westerners (mainly belonging to the radical left) criticized President Donald Trump’s decision to pause U.S. foreign aid, many African intellectuals welcomed the new administration’s policy.’ 

She pointed to a recent column by Nigerian expert Mfonobong Inyang, titled, ‘Wake Up Africa, Foreign Aid Is Not A Development Strategy.’ She said ‘in his article, he stated that foreign aid is meant to be a temporary relief and intervention, not an official policy of any country that seeks to assert its sovereignty.’

Mahjar-Barducci said, ‘Many African economists are saying that the suspension of USAID funding, offers an opportunity to redefine the African countries’ development strategy, and establish an ‘Africa-first approach,’ based on direct investments, innovation, partnerships, (and) empowering local governance.’

On Sunday, The Associated Press reported that some 1,600 posts at USAID would be eliminated after reviewing notices that were sent to USAID workers.

Enter the dragon. China is whipping its Belt and Road Initiative into a virtual frenzy in Africa. Beijing has invested over $700 billion in infrastructure development on the continent in the decade up to 2023, according to China’s commerce industry. 

Cronje said that when it comes to Africa, China already believes in pushing trade, rather than aid, ‘in terms of both foreign investment flows and trade flows, China is a significantly more important economic partner for Africa than is the U.S. Since around 2010, Chinese trade with Africa escalated sharply in dollar terms whilst trade levels between the U.S. and Africa remained relatively flat.’

Mahdar-Barducci borrowed Ghanian economist George Ayittey’s phrase ‘Chopsticks Mercantilism’ to describe China’s policy in Africa, commenting on ‘China’s dexterity in striking deals with African leaders that were stacked in its own favor. Chinese multinational companies are investing in the African continent, in exchange for access to natural resources.’ 

Cronje stated that for the U.S., instead of aid, ‘trade is likely to be a more effective route to securing sound economic and diplomatic relations with Africa, as it helps to build sustainable African economies without being a direct cost to American taxpayers.’

Additionally, on China, Cronje concluded, ‘In many respects, the U.S. is having to play catch-up in Africa. For American policy makers, the trade and investment deficit relative to China should be a more important concern than the question of future aid flows.’

This post appeared first on FOX NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
SCOTUS to hear straight woman’s discrimination case that could reshape employment law
next post
Hamas agrees to return bodies of 4 Israeli hostages in exchange for hundreds of Palestinian prisoners

You may also like

Trudeau’s Liberal Government Introduces Amendments Banning SKS and...

November 24, 2022

Jan. 6 committee member says pardons are unnecessary:...

January 16, 2025

INSANE VIDEO: Arkansas Man Catches Fire While Being...

October 28, 2022

Harris conspicuously absent from public memorials honoring service...

August 26, 2024

Mask Mandates Could Make Return After HHS Report...

November 23, 2022

Republicans respond after ‘Twitter Files 6’ reveals FBI...

December 17, 2022

Trump says Pelosi ‘probably a little bit smarter’...

March 3, 2024

DeSantis offers to assist California with Hurricane Hilary...

August 20, 2023

Manchin says third-party ticket is a ‘long shot’...

November 23, 2023

American father of Hamas hostage Itay Chen pushes...

October 7, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Disabling Trump’s “Tariff Button”

      June 5, 2025
    • ‘Sick puppy’ Tim Walz should never have been on Dems’ 2024 ticket, Trump says

      June 5, 2025
    • Federal judge orders Trump to restore funding to Clinton-era agency gutted by DOGE

      June 5, 2025
    • Musk says Trump would have lost 2024 election without him as ‘Big Beautiful Bill’ feud continues

      June 5, 2025
    • Ex-Biden adviser calls Jean-Pierre ‘kinda dumb,’ deletes tweet, says she’s not a ‘genius-level Black woman’

      June 5, 2025
    • ‘Coming for us’: Expert sounds alarm on CCP’s mission to ‘kill Americans’ after FBI makes shocking arrests

      June 5, 2025

    Categories

    • Business (8,148)
    • Investing (2,010)
    • Politics (15,535)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved