How Uganda is managing Trump foreign aid freeze

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The Ugandan government has reacted to US President Donald Trump’s recent order to halt foreign development assistance for 90 days pending a review of efficiencies and consistency with his foreign policy.

ICT minister Chris Baryomunsi told the media at the Uganda Media Centre in Kampala on January 28, 2025, they had taken note of Trump’s executive order he signed just hours after he took office for a second term on January 20, 2025.

“Yes, USAID (United States Agency for International Development) and related US agencies have announced the likelihood of cutting or reducing the funding following that directive from the new president and we take note of that. In any case, our view as the Government is that our survival does and should not depend entirely on foreign support or the support from external partners,” he said.

The USAID-funded programmes help millions of people worldwide fight against HIV/AIDS and provide support for everything from access to clean water, healthcare infrastructure and children’s health.

Chris Baryomunsi, the ICT minister addressing journalists during a press conference at the Uganda Media centre on January 28, 2025. (Photo by Nancy Nanyonga)

Trump’s order said, “All department and agency heads with responsibility for United States foreign development assistance programmes shall immediately pause new obligations and disbursements of development assistance funds”.  

Baryomunsi said the Ugandan government continues to build its internal capacity to sustain the programmes funded by the US and other external partners.

“Yes, we appreciate the support that we receive from external partners, but if they choose to withdraw or reduce the funding, we say, so be it, and the good thing is that we are now in the early stages of the budgeting process. So, we shall be able to budget appropriately to cover those gaps created by the funding which was coming from the USAID and other US-based agencies that were supporting the health sector and other sectors in government,” he told the media.

The minister emphasised that they will critically examine the 2025/26 budget and make the necessary allocations within the domestic resources to fill the funding gaps.

“We shall wait for formal communication from USAID to see what they are cutting or reducing and then we make the necessary changes to ensure health care is not compromised. We shall for instance cut down the consumptive part of the budget and non-essential areas which can wait. For instance, we have been having a freeze on procurement of new vehicles in government and that shall continue so that we make a saving and allocate that money to essential areas like health care,” he said.

Baryomunsi also said even if it requires them as the Government to suspend the construction of some roads, they can still do it because life is paramount.

“So, we are not going to say those on ARVs (antiretrovirals) go into a holiday. We shall make necessary changes within the budget without disrupting the lives of Ugandans, but we continue to enjoy very good and cordial relationships with our partners including USAID and others. So, there should be no cause for alarm,” he said.

The Ugandan Parliament is expected to consider the National Budget Framework Paper for the financial year 2025/26 on January 29.

Sh1.7 trillion saved

In June 2024, finance ministry permanent secretary Ramathan Ggoobi said the Government saved shillings 1.7 trillion from several austerity measures it took to reduce consumptive expenditure.

He outlined these expenditures on vehicles, workshops and seminars, furniture, and supplies, among others, while making a keynote speech at the 2024/25 post-budget dialogue in Kampala on June 14, 2024.

“In the 2021/22 financial year, we repurposed the budget and got sh1.7 trillion from these austerity measures and it’s the money we used to pay for PDM [Parish Development Model] and enhancing salaries of scientists and we are continuing that. That is why the fiscal deficit is reducing,” he said.

He said managing government expenditure is a practical job. “And we are doing this practical job daily by ensuring that we reduce expenditure on things that don’t add value. We have cut travel abroad beyond half,” Ggoobi, who is also the country’s Secretary to the Treasury, said.