By Asha Wandulu
In a surprising policy shift, President Donald Trump has enacted a 90-day suspension on new USAID funding, aiming to realign aid with U.S. strategic interests under the “America First” doctrine. This decision has caused a stir, particularly in Africa, where many countries rely on such aid. However, this pause could serve as a pivotal moment for nations like Uganda to foster self-reliance in the following ways;
Local Innovation Takes Center Stage: In Uganda, this could mean leveraging the spring-up tech scene in Kampala. For instance, incubators like Hive Colab could expand, fostering more startups like Roy Coffee Processors and Exporters Co Limited , which provides innovative solutions for smallholder farmers and youths along the coffee value chain. Additionally this is a time for the Ugandan government to address longstanding issues of corruption, particularly in light of recent scandals involving public funds. This could lead to reforms in procurement processes, as seen in the recent scrutiny over the Parish Development Model’s implementation, aiming for greater transparency.
Sovereignty in Spotlight: Uganda has had a history of navigating between different global influences. With less U.S. aid, there’s an opportunity to pursue policies more aligned with national interests, such as the ongoing push for value addition in agriculture, reducing the need for raw exports. Talk about economic diversification; Uganda’s oil sector, with production scheduled to begin, could be a focal point for economic diversification. The pause will accelerate the development of local industries to support this sector (Buy Uganda Build Uganda), reducing reliance on imported equipment and expertise.
Regional Collaboration: Uganda, a key member of the East African Community (EAC), could strengthen regional trade links. The Northern Corridor Integration Projects could gain momentum, enhancing infrastructure like the Standard Gauge Railway, which would benefit not just Uganda but the entire region. Here comes education and innovation: Uganda could invest more in its education system, particularly in STEM, to prepare its youth for a tech-driven economy. Programs like the Presidential Initiative for skilling the Girl and Boy Child could be expanded to reach more communities. Furthermore, strengthening international relations; With USAID funds paused, Uganda will grow its relationships with alternative international bodies and strike partnerships with other nations for its trade and development. For example, partnerships with China for projects like the Kampala-Jinja Expressway could be fast-tracked and even lead to greater lines of engagement and development.
Fostering Entrepreneurship; the government could ease regulations and provide incentives for startups, similar to the successful model of the Kampala Capital City Authority’s Startup Kampala initiative. Agricultural Revolution; Uganda’s rich agricultural land could be better utilized. The National Agricultural Advisory Services (NAADS) could shift focus towards sustainable farming practices, enhancing productivity and moving towards agro-processing, as seen with the burgeoning coffee value chain and finally here comes financial Integrity; following recent financial mismanagement cases, Uganda has the chance to overhaul its financial governance and strengthen its institutions like the Office of the Auditor General could make Uganda more attractive to investors looking for stable environments.
While initially perceived as a setback, for Uganda, President Donald Trump’s decision on USAID funding is a disguised catalyst for self-reliance and innovation to take advantage of our natural resources like never before. This period could redefine how Uganda approaches its development, focusing on internal strengths and regional cooperation to pave a new path towards economic independence and prosperity.
The author is the Founder of Ashalumi Governance Network
