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Why Has America Decided To Retract Ethiopian Financial Aid?

Why Has America Decided To Retract Ethiopian Financial Aid?

Ethiopia has been left perplexed as the US has suddenly decided to pull its hands off the funding commitment it had set into motion since May 2020. The US had formally renewed a commitment to support Ethiopia with a whooping $230 million under a Development Partnership Agreement through the US Agency for International Development (USAID).

The funding was to buttress Ethiopia’s efforts to pull itself out of the shackles of poverty and raise itself to the level of a middle income country. But Ethiopia’s own decision to open its flood gates to the promising hydro power project that has received neither support from Egypt nor from Sudan.

The American president’s stance is strangely ironic as he chooses to be tightlipped about Putin’s criminal acts against his critic, while he busies himself in squeezing comfort off needing countries like Ethiopia. In asserting its sovereignty and sense of ownership Ethiopia decided to fill the reservoir at the massive hydropower Grand Ethiopian Renaissance Dam (GERD) at the Nile River.

It could be possible that the US has felt let down as its sense of responsibility to provide with solutions to the Egypt, Sudan and Ethiopian trio last year were not entertained by Ethiopia. The latter chose to maintain distance suspecting the US was favoring Egypt.

At the White House, discussions over the cut on aid had been going on for weeks. On the Ethiopian side, they are confident this is merely a misunderstanding. But the truth of matter seems that Trump again, isn’t bother about diplomatic relations going sour.

He would rather want to be kept in the loop and play the peace maker for Egypt and Sudan, at the expense of all the development that the dam promises to bring to Ethiopia.

Officials close to the matter have suggested that while the cut that will amount to roughly $100million will affect programs related to regional security, it will not affect programmes tackling HIV/AIDS, conflict, drought, displacement, and other humanitarian challenges. 

The fear over water shortage to Sudan and Egypt are conclusions drawn over half baked information, political analysts claim. There is more room for talks and research as the massive dam project is going to solve the electricity problems for all three nations in question.

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