The leader of a development finance institution's Africa division said of the aid cuts: “Traditional shock absorbers are also weakening. We’ve seen multilateral institutions such as the World Food Programme, UNICEF, the World Health Organization, facing significant funding shortfalls too. So this will reduce their ability to offset bilateral cuts.”

Date: 7/26

Region: Africa

Country: Multi-country

Topic: Economy & Livelihoods

Policy Lens: Economic & Trade Interests

Entry Type: Field Observation

Additional Context: This quote is attributed to Amadou Sy, assistant director of the Africa department at the International Monetary Fund. As explained previously, aid might fall for one or several countries, often for geopolitical reasons or, on a positive note, because countries developed rapidly and no longer qualified for aid. The cuts since 2025, in large part driven by the U.S. funding disruptions, have meant the funding shocks are unprecedented. Sy goes on to note that humanitarian assistance in particular is being pummeled, with a 40% contraction in 2025. “Another concern is that the current cuts are likely only to be the first wave because aid is programmed on multiyear cycles and further reductions are expected as new budget periods begin.”

Source: Devex