Trump's Policy and Impact of USAID on Namibia

Impact of USAID assistance to Namibia amid policies changes. When Namibia gained its independence in 1990, the United States, through the Un...

Impact of USAID assistance to Namibia amid policies changes.

When Namibia gained its independence in 1990, the United States, through the United States Agency for International Development (USAID), stepped in to support the young nation’s post-apartheid recovery. Over the years, USAID has played a pivotal role in Namibia’s development by providing financial support, technical assistance, and capacity-building initiatives aimed at securing the country’s long-term goals.  

The impact of USAID assistance to Namibia has been significant, particularly in light of recent policy changes.

Since its introduction in Namibia, USAID has focused on addressing critical areas such as health, education, food security, and economic development. One of the most notable contributions has been through the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR), a program linked to U.S. military research. PEPFAR has been instrumental in Namibia’s fight against TB, HIV/AIDS, providing life-saving antiretroviral therapy (ART) and supporting vulnerable populations. However, recent shifts in U.S. foreign aid policies under the Trump's new administration have introduced significant changes, impacting USAID’s funding and programs in Namibia. 

Social Services Support

In 2023 alone, PEPFAR invested approximately N$840 million (US$45 million) in Namibia to deliver health and social services to children, adolescents, and youth affected by HIV. This funding supports the Reach Namibia program, which operates in eight regions housing 80% of the country’s population. Implemented by local organizations like Project HOPE Namibia and IntraHealth Namibia, the program aims to prevent HIV transmission, improve access to health services, and ensure that at-risk populations remain AIDS-free.

Namibia has made remarkable strides in its HIV response, thanks in part to USAID’s support. Ben Nangombe, Executive Director of the Ministry of Health and Social Services (MOHSS), highlighted that Namibia currently stands at 92-99-94—a significant indicator of progress toward achieving an AIDS-free generation. These numbers reflect high levels of HIV testing, treatment, and viral suppression, showcasing the effectiveness of collaborative efforts between the Namibian government and international partners like USAID.

The five-year “Reach Namibia” programme targeted children and youth made vulnerable by HIV in selected regions, improving their access to health and social services to prevent them from contracting HIV and to stay AIDS-free. This is among the U.S. programmes that breathed life into many non-governmental organisations in Namibia, which now face a shortage of funds.

Marbeline Sabatha, Deputy Director of Information Research within the Ministry of International Relations and Cooperation, said that the ministry believes the U.S. administration’s withdrawal from the Paris Climate Accord, the World Health Organization, and the International Court of Justice has only weakened multilateral institutions in confronting challenges posed by current geopolitical realities.

“Regarding U.S.-Namibia bilateral relations, the relationship between the U.S. and Namibia is cordial.

Through this relationship, Namibia has benefited from various programmes offered by the U.S., such as the President’s Emergency Plan for AIDS Relief (PEPFAR), the African Growth and Opportunity Act (AGOA), the U.S. Agency for International Development (USAID), the Young African Leaders Initiative (YALI), and the Peace Corps. Namibia also benefits from regional programmes in the field of energy through the Southern African Regional Energy Programme, which is part of the U.S. commitment to supporting regional integration and the transition to clean energy. Substantial investment is entering the energy sector from the U.S., particularly in the oil and gas sector,” Sabatha said.

She added that Namibia exports uranium ore, diamonds, precious and semi-precious stones, marble, travertine, alabaster, frozen boneless meat, fish, charcoal, essential oils, and cosmetics to the U.S.

“While the relationship is mutually beneficial to both countries, it can also be influenced by the international political climate, as seen in the U.S. decision to halt foreign aid. It is not clear how much assistance will be affected, as funding for many projects has already been appropriated by Congress and is obligated to be spent. What might affect Namibia is when these programmes are revisited for renewal. Namibia remains open to engaging with the U.S. on matters of mutual benefit,” Sabatha said.

Touching on AGOA, which was enacted in 2000 to offer Sub-Saharan countries preferential access to the U.S. market, Sabatha said that Namibia signed the Trade, Investment, and Development Agreement.

She added, however, that Namibia has not fully leveraged its AGOA benefits, as it remains largely a commodity-based exporter, particularly of diamonds and uranium. “The closure of Ramatex has hindered the growth of Namibia’s textile industry in the U.S., which was once central to U.S.-Namibia trade relations,” Sabatha said. Governor of the Bank of Namibia, Johannes !Gawaxab, giving his views on the subject, said that trade wars between the U.S. and South Africa could influence Namibia.

“What we need to do is watch trade wars and exchange rate movements, particularly the relationship between South Africa and the U.S., which will have a profound impact on the Namibian economy. There are about 600 U.S. companies in South Africa, employing 2,000 people. This accounts for about 5% of South Africa’s GDP. We will see the impact of negative trade relations through the exchange rate, as the Namibian dollar is pegged to the rand,” !Gawaxab said.

However, challenges remain. Food insecurity, exacerbated by climate change, threatens to undermine these gains. Namibia is particularly vulnerable to droughts and floods, which disrupt agricultural production and access to nutritious food. For individuals living with HIV, ART adherence becomes difficult on an empty stomach, highlighting the interconnectedness of food security and health outcomes. 

Climate change poses a significant threat to Namibia’s development, with increased frequency of droughts and floods disrupting livelihoods and food systems. USAID has been a key partner in addressing these challenges, supporting initiatives to enhance resilience and ensure food security. Yet, as climate-related disasters intensify, the need for sustained investment in adaptive strategies becomes even more critical.

Impact of Trump's Policy 

The Trump administration’s “America First” policy marked a significant shift in U.S. foreign aid priorities. Emphasizing domestic investments over international assistance, the administration implemented widespread cutbacks and restructuring of USAID programs worldwide. Namibia, which has relied heavily on U.S. funding for critical sectors like health, education, and economic development, felt the impact of these changes.

Under the new policy, many USAID programs in Namibia faced suspension or downsizing. While the Namibian government has taken steps to ensure continuity in essential services, the reduction in U.S. funding poses challenges to sustaining progress. Financial and managerial responsibilities are increasingly shifting to the Namibian government, with U.S. assistance expected to focus more on technical support rather than direct service delivery.

The impact of Trump’s foreign aid policy extends beyond health programs. USAID had historically supported Namibia in areas such as democracy and governance, education, employment creation, enterprise development, and natural resource management. The reduction in funding has left gaps in these sectors, potentially slowing progress toward Namibia’s development goals.

For instance, USAID’s support for economic development initiatives helped create jobs and foster entrepreneurship, contributing to poverty reduction. Similarly, its investments in education and governance strengthened institutions and empowered communities. Without alternative funding sources, sustaining these gains will require innovative solutions and increased domestic resource mobilization.

The long-term impact of the Trump administration’s policy shift on Namibia remains to be seen. While the Namibian government has demonstrated resilience in the face of reduced foreign aid, the withdrawal of U.S. funding poses significant challenges, particularly for vulnerable populations reliant on USAID-supported programs.

To mitigate these challenges, Namibia will need to explore alternative funding mechanisms, strengthen partnerships with other international donors such as World Health Organization, and enhance its capacity to manage and implement development programs independently. Additionally, continued advocacy for global solidarity in addressing shared challenges like climate change and health crises will be crucial.

Conclusion

USAID’s assistance to Namibia has been a cornerstone of the country’s development journey, contributing to significant progress in health, food security, and economic growth. However, the shifting landscape of U.S. foreign aid policies under the Trump administration has introduced new challenges, underscoring the need for adaptive strategies and diversified partnerships.

As Namibia navigates these changes, the resilience and determination of its people and government will be key to sustaining progress and achieving long-term development goals. The legacy of USAID’s support serves as a reminder of the power of international collaboration, even as the country charts a more self-reliant path forward.