SNAPSHOTS: HUMANITARIAN AID IN AFRICA research and analysis by Patrick Wecal
When you look at some of the data as it relates to aid in African countries, some insights begin to present themselves. 1. All of Africa spends too much on debt and that severely inhibits their ability to serve the health needs of their population. 2. As the U.S. and other wealthy nations cut back on foreign aid budgets, African lives will be lost and those statistics are staggering, bringing back the dark days of the 1980’s when AIDS first hit the continent. 3. More revenue must be generated and greater manufacturing capabilities must be built in Africa. The continent must move closer to achieving its economic potential. U.S. and China, the two most promising development partners, are interested in getting a return on their investments, be that aid or trade.
In 2025, Africa is expected to pay ~$89B in debt. 30 of 49 African countries spend more on debt interest than on healthcare. Kenya spends ⅓ of its government budget on debt.
Rich nations are cutting crucial funding for humanitarian aid and health care in Africa, especially HIV services. These poorer countries lack the capacity to instantly absorb these losses. U.S. has current plans to cut 25% of humanitarian aid budget. EU countries have cut 15-20% of their aid budgets.
UNAID warns that the number of 3,500 new HIV infections per day could now jump 5,800 per day leading to 6 million new infections per year and 4 million more with AIDS by 2029. Domestic funding covers around 60% of HIV response in Africa.
Kenya pays around $75 per person per year for the ARV regimen. Costs for Zimbabwe are around $200 per person.
Top American companies doing business in Africa: Exxon, Microsoft, IBM, JP Morgan Chase, Pepsico.
Top African pharma and healthcare companies:
-Aspen Pharmacare (South Africa): Africa’s largest pharmaceutical company, Aspen produces life-saving medicines and medical equipment.
-Netcare (South Africa): Known for healthcare services and medical equipment manufacturing.
-MediKredit (South Africa): MediKredit manufactures essential diagnostic equipment and healthcare technology.
-Biovac Institute (South Africa): Biovac manufactures vaccines locally, focusing on preventing infectious diseases.
-Linx Pharmaceuticals (Nigeria): Specializing in malaria and infectious disease treatments.
China’s economic pledges to Africa:
Eliminated tariffs for all developing countries
Investing $51 billion in development projects
Pledged 30 infrastructural connection projects and 30 clean energy initiatives for Africa, as well as prospective collaboration in nuclear technology to alleviate the continent's power shortages.
U.S. economic pledges to Africa:
U.S. tariffs on African products range from 11-50%.
U.S.-Africa Business Summit Yields $2.5 Billion in Deals and Commitments
Major Deals and Commitments for U.S. Companies:
Amer-Con Corporation & Angolan Cargo and Logistics Certification Regulatory Agency
A U.S. consortium led by Florida-based Amer-Con Corporation signed a Strategic Partnership Agreement with the Angolan Cargo and Logistics Certification Regulatory Agency to construct and operate 22 grain silo terminals along the Lobito Corridor. The project is backed by the U.S. Export-Import Bank and is expected to significantly enhance Angola’s food security and agri-logistics capacity.
Cybastion & Angola Telecom
U.S. technology firm Cybastion and Angola Telecom signed a $170 million investment deal to expand digital infrastructure and cybersecurity through Cybastion’s “Digital Fast Track” initiative, providing local training and modern infrastructure for Angola’s digital transformation.
CEC Africa & AG&P
CEC Africa Sierra Leone Ltd. signed a Memorandum of Understanding to develop West Africa’s first U.S.-sourced LNG terminal, in partnership with AG&P and backed by the U.S. International Development Finance Corporation. The terminal will power the 108MW Nant Power Project in Sierra Leone and enable affordable energy for industrial and household use in Sierra Leone.
Ruzizi III Holding Power Company & Anzana Electric Group
The Ruzizi III Holding Power Company signed an Invitation to Partner with U.S.-based Anzana Electric Group, paving the way for a 10% equity stake in a $760 million hydropower project spanning Rwanda and the DRC. The project will deliver reliable energy to 30 million people across the region and promote regional integration and stability.
Ethiopia Investment Holdings and U.S. International Finance Partners
Ethiopia Investment Holdings signed a Memorandum of Understanding with U.S. International Finance Partners to invest more than $200 million in the development of luxury hotels, branded residences, and related tourism infrastructure in Ethiopia. The agreement aligns with the development priorities of Ethiopian President Taye Atske Selassie, who witnessed the signing.
Hydro-Link and the Government of Angola
U.S. energy investor Hydro-Link signed an agreement with the Angolan Government to develop a $1.5 billion private transmission line connecting hydropower sites in Angola to critical mineral mines in the DRC. This 1,150-kilometer transmission corridor will enable the delivery of up to 1.2 gigawatts of reliable electricity from Angola’s Luaca plant and other hydroelectric facilities to the Kolwezi mining region in the DRC, supporting the region’s mining operations and energy needs.