Trump administration closes U.S. aid agency, sparking concerns
The administration of U.S. President Donald Trump has ordered the closure of the American agency Millennium Challenge Corporation (MCC), which invests billions of dollars in projects, primarily in Africa, a representative of the MCC informed employees on Wednesday.
According to AFP, MCC is to immediately withdraw from its various projects, such as road construction and power grid modernization, which are likely to remain unfinished.
The shutdown of MCC was announced after the State Efficiency Department (DOGE), led by billionaire Elon Musk, issued a document that announced a significant "reduction" in the number of the agency's program staff.
MCC was established in 2004 by President George W. Bush to assist countries that share American standards of democracy, governance, and a liberal economy. The institution received strong support from members of Congress from both parties.
Since its inception, the agency has invested approximately $17 (CAD 23.5) billion in numerous projects, such as $500 (CAD 692) million in road modernization, irrigation systems, and power grid development in Zambia.
AFP writes that investing in the infrastructure of developing countries is seen as an important area for expanding influence by global powers, and China is very active in Africa.
China is Africa's largest business partner
China is the largest trading partner of African countries. According to official Chinese media, in the first quarter of 2024, the bilateral trade exchange between all African countries and China amounted to approximately $167,8 (CAD 232) billion.
President Trump, who, according to experts, has a transactional approach to diplomacy, shows little interest in sub-Saharan Africa and providing public assistance to other countries unless it is directly beneficial to the U.S.
