Trump administration shuts down billion-dollar Africa fund
The administration of U.S. President Donald Trump ordered the closure of the American agency Millennium Challenge Corporation (MCC), which invests billions of dollars in projects primarily in Africa, a representative of the MCC informed employees on Wednesday.
According to AFP, MCC is to immediately withdraw from its various projects, ranging from road construction to power grid modernization, which will likely result in them being left unfinished.
The shutdown of MCC was announced after the State Efficiency Department (DOGE), led by billionaire Elon Musk, issued a document stating a "significant reduction" in the number of the agency's staff.
MCC was established in 2004 by President George W. Bush to assist countries that share American standards of democracy, governance, and liberal economies. The institution received strong support from congressmen of both parties.
Since its inception, the agency has invested $17 billion in various projects, including $500 million in road modernization, irrigation systems, and power grid development in Zambia.
According to AFP, global powers consider infrastructure investment in developing nations a key strategy for extending their influence, with China playing a particularly active role in Africa.
China is Africa's largest business partner
China is the largest trading partner for countries on the African continent. According to official Chinese media, in the first quarter of 2024, the bilateral trade exchange between all African nations and China totalled $167.8 billion.
President Trump, according to experts, has a transactional approach to diplomacy, showing little interest in sub-Saharan Africa and providing public assistance to other countries only when it is directly beneficial to the United States.
