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    • News
    • The Trump Effect

    'That money is going to sink us': USAID-funded startups fight to survive

    As the Trump administration dismantles USAID, African startups who relied on the agency for early-stage support are frantically seeking alternatives.

    By Ayenat Mersie // 05 March 2025

    For three years, one startup founder in East Africa had been quietly building an agriculture company he believed could change the world. And early signs suggested that, at least in this sliver of the world, it might.

    The startup secured thousands of dollars in grant funding from the U.S. Agency for International Development — not a fortune, just “a rounding error in a millionaire’s checkbook,” as he put it. But it was enough to make critical investments, buy hardware, pay salaries — and most importantly, it gave the company the credibility to unlock capital from other investors.

    Then, USAID’s dismantling pulled the rug out from under them. The funding, which should have been disbursed weeks ago, was suddenly frozen for at least 90 days, and the future beyond that uncertain. Now, time is running out to keep the company afloat.

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    More reading:

    ► Trump to scrap US African Development Foundation, US Institute of Peace

    ► The urgent need to rethink Africa's health financing

    ► Funding freeze on US foreign aid is 'over,' Trump administration claims

    • Economic Development
    • Funding
    • Private Sector
    • Trade & Policy
    • United States Agency for International Development (USAID)
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    About the author

    • Ayenat Mersie

      Ayenat Mersie

      Ayenat Mersie is a Global Development Reporter for Devex. Previously, she worked as a freelance journalist for publications such as National Geographic and Foreign Policy and as an East Africa correspondent for Reuters.

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