The European Commission says its network of development staff in 100 offices around the world is no longer fit for purpose. Today we bring you exclusive details on what comes next.
Also in today’s edition: Progress on the World Bank and African Development Bank’s joint effort to provide electricity for 300 million Africans by 2030, how the EU aid department lost an internal fight over development spending in fragile countries, and why skin lightening is so dangerous.
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EU aid overhaul
The European Union is planning a major revamp of its foreign aid apparatus, consolidating key operations — and staff — into 18 regional hubs while possibly pulling development experts from some countries entirely.
An internal EU document says the current system isn’t up to delivering on the bloc’s 2021 Global Gateway strategy, meant to match development goals with EU geopolitical interests like green energy, migration control, and security.
The idea is that the hubs will handle everything from project identification, tenders, and evaluation, working in concert with a much smaller team of development experts in most — but not necessarily all — countries.
Staff unions and aid workers are raising alarms, calling the shift short-sighted and warning it could erode trust and effectiveness in fragile regions, our Vince Chadwick writes.
It could mean fewer locals employed by EU delegations, for instance. But an EU official in a delegation in Africa tells Vince that “local agents serve as the institutional memory, while expatriates rotate frequently, limit the understanding of local context.”
So where are these hubs? Read on for the full list, and see if your eyebrows join those already firmly raised in Brussels over some of the choices — such as running aid to Pakistan from New Delhi in India or assistance to Brazil from Buenos Aires in Argentina.
Read Vince’s scoop: EU wants development staff in regional hubs, not delegations (Pro)
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Budget battle fallout
Last year, the European Commission’s humanitarian wing, DG ECHO, tried to stop big cuts to the EU’s development budget, warning of dire consequences for crisis-hit countries.
Internal documents, obtained by Vince, reveal a showdown with DG INTPA, the EU’s development arm, which ultimately emerged victorious after top-level intervention from commission President Ursula von der Leyen’s office.
Tasked with implementing a €2 billion development spending cut in the 2025-2027 funding plan in order to fund priorities like Ukraine aid and migration control, INTPA devised regional “investment envelopes” to boost private investment through guarantees and blended finance. Yet these came at the cost of sharp reductions for some of the world’s lowest-income countries. Funding for the Central African Republic, Togo, and Malawi, for example, was slashed by 73%, 48%, and 45%, respectively.
ECHO raised red flags, arguing the cuts violated commitments to prioritize the neediest nations and jeopardized EU security and migration goals. Afghanistan, the Central Sahel, and Sudan were among those hit hardest, risking decades of development gains.
INTPA, however, justified the shift as a move to strategic flexibility, balancing humanitarian concerns with geopolitical interests.
After much back-and-forth, ECHO reluctantly approved the changes, securing vague reassurances about future support for Afghanistan and the Sahel. But as the dust settles, many question whether Europe’s development strategy is leaving its most vulnerable partners behind.
Revealed: EU aid’s losing internal battle to halt spending cuts
🎧 Listen: For the latest episode of our podcast series, Devex’s Adva Saldinger, Raj Kumar, and Elissa Miolene discuss some of the trends that will shape global development this year including reduced funding from traditionally generous donors.
PEPFAR funding block
Across the pond, U.S. Republican Sen. James Risch, chair of the Senate Foreign Relations Committee, has frozen $1 billion in PEPFAR funding, citing fears it might indirectly support abortions abroad. He vowed to keep the hold until he’s assured “not one single American tax dollar” promotes or funds abortions, despite U.S. law already prohibiting this.
Risch has called for an investigation into the State Department’s handling of PEPFAR, which stands for the U.S. President’s Emergency Plan for AIDS Relief, and global health funds, though no evidence of misuse has surfaced. With PEPFAR’s authorization set to expire in March, the standoff could threaten the U.S. flagship HIV/AIDS relief program, our Senior Reporter Adva Saldinger writes.
Read: Sen. James Risch holding $1B in PEPFAR funding
+ As Donald Trump assumes office on Monday with Republicans in full control of the U.S. Congress, what does the future hold for U.S. aid? Join us on Wednesday, Jan. 22, to discuss what we can expect from the Trump administration's first 100 days. Save your spot now.
Watt’s next for electrifying Africa
Progress on the World Bank and African Development Bank’s joint effort to expand electricity access to 300 million people in Africa by 2030 — known as Mission 300 — is accelerating. On Thursday, bank leaders shared updates on the initiative and previewed what to expect from the upcoming Mission 300 Africa Energy Summit, set for Jan. 27–28 in Dar es Salaam, Tanzania.
The summit, co-hosted by the African Union and the Tanzanian government, will feature the unveiling of energy compacts from 13 African countries: Zambia, Chad, Burkina Faso, the Democratic Republic of Congo, Liberia, Malawi, Tanzania, Côte d’Ivoire, Mauritania, Niger, Senegal, Madagascar, and Nigeria.
Each of these compacts will focus on five pillars: cost-effective electricity generation, regional power integration, universal access plans, private sector investment, and financially viable power utilities, my colleague Ayenat Mersie tells me.
Franz Drees-Gross, director of infrastructure for West and Central Africa at the World Bank, highlights the importance of partnerships in achieving these goals: “If you’re going to reform African energy sectors, you have to make deep and sometimes politically difficult sector and utility reforms.” He adds that the World Bank plans to increase its annual energy financing in Africa from an average of $3 billion to $5 billion for the next six years.
The summit will also feature the endorsement of an Africa Energy Declaration by heads of state and announcements of co-financing and technical support for various M300 projects, underscoring the critical role of the private sector in achieving universal access.
Ayenat will be on the ground in Dar es Salaam at the end of the month, so stay tuned for more updates.
🎧 ICYMI: Listen to our podcast episode with the CEO of the M300 Accelerator, which aims to make the electrification ambition into reality.
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Zimbabwe’s skin lightening dilemma
Fifth Avenue in Zimbabwe's second-largest city, Bulawayo, bustles with vendors selling everything from fresh produce to used clothes — and, controversially, skin lightening creams. Despite bans on these products, demand thrives, fueled by societal pressure and promises of instant beauty.
Products like Pretty White and CT+ are sold openly, often at just $5, despite warnings from health officials about dangerous ingredients like mercury and hydroquinone. Users hope for lighter skin and boosted confidence, but face risks like cancer, organ damage, and severe allergic reactions, writes Daisy Jeremani for Devex.
Globally, the $31.2 billion skin lightening industry exploits colorism — a bias favoring lighter skin — leaving many grappling with its harmful effects. Activists like Dellasie Aning, inspired by personal loss, lead the charge against this practice, pushing for stricter enforcement of bans and promoting self-love.
“I'd say the problem is tremendous,” says Dellasie, the niece of former U.N. Secretary-General Kofi Annan who lost a beloved aunt and beauty model, Zinabu, to melanoma after years of using the toners. “Sometimes the ingredients aren't even listed! This is a massive problem that is getting virtually no attention, remedy, or support. It can be so disheartening sometimes.”
For now, the debate continues on Fifth Avenue and beyond, as vendors hawk their wares, laws falter, and society confronts the cost of chasing skin fairness in a world still grappling with shades of inequality.
Read: Why skin bleaching is a public health concern
WHO Africa restarts leadership race
The World Health Organization regional committee for Africa is restarting the process to elect its next regional director following the unexpected death of Dr. Faustine Engelbert Ndugulile in November. Ndugulile, a Tanzanian politician, passed away while undergoing medical treatment in India, just months after being elected to the position.
According to Derek Walton, WHO’s legal counsel, a call for nominations from African member states will be launched in the coming days. The committee plans to hold a special session in May, ahead of the 78th World Health Assembly, to select a nominee for confirmation by the WHO executive board, Devex Senior Reporter Jenny Lei Ravelo tells me.
“If that all goes to plan, we should have a new regional director for Africa in place by the first of June of this year,” Walton states.
ICYMI: Candidate elected to lead WHO's Africa office has unexpectedly died
Background reading: A career politician from Tanzania is nominated to WHO Africa’s top job
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In other news
Armed conflict is seen as the top threat to global economies in 2025, according to a report released ahead of the annual World Economic Forum in Davos. [DW]
Azerbaijan has ceased cooperation with USAID, accusing it of promoting U.S. political interests, Foreign Minister Jeyhun Bayramov announced. [Reuters]
Indonesia has adopted a 15% global minimum corporate tax from Jan. 1, following a 2021 OECD-backed landmark deal. [Nikkei Asia]
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About the author
Helen Murphy
Helen is an award-winning journalist and Senior Editor at Devex, where she edits coverage on global development in the Americas. Based in Colombia, she previously covered war, politics, financial markets, and general news for Reuters, where she headed the bureau, and for Bloomberg in Colombia and Argentina, where she witnessed the financial meltdown. She started her career in London as a reporter for Euromoney Publications before moving to Hong Kong to work for a daily newspaper.
