The US Africa Development Foundation (USADF) has slashed $51 million in funding for African SMEs and startups, affecting over 1,000 businesses across 22 countries.
The move, led by the Department of Government Efficiency (DOGE) under the Trump administration, puts cooperatives, smallholder farmers, and early-stage ideas at risk especially in Nigeria and Kenya.
Nigeria and Kenya, the biggest beneficiaries of USADF, had received $20.4m and $16.9m respectively to support rural and women-led enterprises. Over 397 businesses in both countries now face uncertain futures.
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Projects hit by the cut include a $48,000 WhatsApp chatbot for Kenyan businesses, an $84,000 wellness incubator in Nigeria, and nearly $230,000 for a shea butter project in Burkina Faso.
DOGE claims the cut is part of an efficiency drive that has saved US taxpayers $140 billion. But the loss of direct-to-business grants often the only source of risk capital for early-stage African ideas could disrupt value chains and spark fresh calls for homegrown funding models.
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