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    HomePartner ContentNew Five-Year Grant Deal for Africa Sidesteps Trump’s Foreign Aid Freeze

    New Five-Year Grant Deal for Africa Sidesteps Trump’s Foreign Aid Freeze

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    In a significant turn of events, the African Development Bank (AfDB) and the U.S. Trade and Development Agency (USTDA) have renewed their Memorandum of Understanding (MOU), extending their strategic partnership for another five years. This development comes amidst a broader policy shift in Washington, where President Donald Trump’s administration has enacted a temporary freeze on all U.S. foreign development assistance. This executive order, part of Trump’s Make America Great Again (MAGA) agenda, aims to review and ensure that aid disbursements align with American interests and values.

    Despite the freeze, the newly extended MOU between the AfDB and USTDA highlights a sustained commitment to infrastructure development in Africa. This agreement emphasizes the importance of strengthening national procurement systems and aligning them with international best practices, thereby leveling the playing field for international competition. The MOU also formalizes ongoing coordination to develop a pipeline of bankable projects that can benefit from USTDA’s project preparation grants.

    “The extension of our strategic partnership reaffirms our shared commitment to creating a more sustainable and prosperous future for Africa,” said USTDA Director Enoh T. Ebong. “By combining our resources and expertise, we are delivering impactful solutions that promote high-quality, sustainable infrastructure on the continent while increasing opportunities for U.S. companies by promoting fair, transparent, and effective procurement systems.”

    The renewed MOU focuses on enhancing public procurement capabilities to create transparent and efficient systems that support economic growth and sustainable development. It highlights a dedication to improving project design and readiness, leveraging the competitive advantages of U.S. companies in sectors such as energy, transportation, digital, and healthcare infrastructure. This strategic approach aims to attract investment and ensure the successful implementation of infrastructure projects across the continent.

    African Development Bank Senior Vice President Marie Laure Akin-Olugbade commended the continued collaboration. “This will ensure that we continue to strengthen national procurement institutions, build capacity, and ensure effective implementation of procurement programs within our regional member countries,” she said. “This fortifies our institutions’ joint ambitions to assist emerging economies in developing policies and procedures promoting best procurement practices, ultimately fostering sustainable economic growth across the continent.”

    The original MOU was signed in 2018 under USTDA’s Global Procurement Initiative (GPI). Launched in 2013, GPI is dedicated to assisting public officials in emerging economies to better understand the total cost of ownership of goods and services for infrastructure projects. The initiative now includes 16 partner countries.

    While Trump’s executive order has temporarily halted new obligations and disbursement of development assistance funds to foreign countries, the renewed MOU between the AfDB and USTDA underscores a continued partnership that prioritizes sustainable infrastructure development in Africa. The African Development Bank Group, comprising the African Development Bank (AfDB), the African Development Fund (ADF), and the Nigeria Trust Fund (NTF), remains a pivotal institution in Africa’s economic development, contributing to the social progress of its 54 regional member states.

    As the U.S. administration reviews its foreign aid policies, the AfDB and USTDA’s renewed partnership serves as a beacon of continued collaboration and commitment to advancing Africa’s infrastructure and economic growth.

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