Africa: U.S. Foreign Assistance Issues
Under the Administration's FY2006 foreign assistance request, U.S. aid to sub-Saharan Africa would continue to grow, due to sharp increases through the State Department's Global HIV/AIDS Initiative. Overall, non-food aid to Africa would total about $3.6 billion under the requst, compared with an estimated $3.4 billion being allocated in FY2005. U.S. assistance finds its way to Africa through a variety of channels, including the USAID-administered DA and Child Survival programs, food aid programs, and refugee assistance. The overall level of funding for aid to Africa remains a continuing subject of debate. Other issues include the eligibility of African countries for aid through the Millennium Challenge Account and U.S. support for the New Partnership for Africa's Development (NEPAD), an African initiative linking increased aid with policy reform.
Order Code IB95052
CRS Issue Brief for Congress
Received through the CRS Web
Africa: U.S. Foreign Assistance Issues
Updated June 19, 2006
Ted Dagne
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress
CONTENTS
SUMMARY
MOST RECENT DEVELOPMENTS
BACKGROUND AND ANALYSIS
U.S. Aid to Africa: An Overview
Bilateral Aid
Background
DFA and Child Survival assistance
Economic and Security Assistance
Food Aid
Peace Corps
Security Assistance
Regional Programs
African Development Foundation
Refugee and Disaster Assistance
Multilateral Assistance
Total U.S. Assistance
FY2006 Request and Congressional Action
Comparison with Other Donors
Recent Trends in U.S. Aid
Sustainable Development Initiatives
Issues
Millennium Challenge Account
AIDS
NEPAD and the G8
Other
LEGISLATION
Appendix: Selected Africa Assistance Acronyms
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Africa: U.S. Foreign Assistance Issues
SUMMARY
Under the Administration’s FY2006
teers there by the end of FY2005. The U.S.
foreign assistance request, U.S. aid to sub-
African Development Foundation makes small
Saharan Africa would continue to grow, due
grants to African cooperatives, youth groups,
to sharp increases through the State
and other self-help organizations. U.S. secu-
Department’s Global HIV/AIDS Initiative.
rity assistance, though still far below levels
Twelve “focus countries”in Africa are benefit-
seen in the 1980s, has increased in recent
ting substantially under this program. Assis-
years, primarily because of U.S. support for
tance through the Child Survival and Develop-
African peacekeeping initiatives. The World
ment Assistance programs would decline,
Bank’s International Development Associa-
although the Foreign Operations Appropria-
tion (IDA) is the principal multilateral channel
tions Act (P.L.109-102) provides more than
for U.S. aid, but the United States also con-
requested worldwide for these programs.
tributes to the African Development Bank and
Overall, non-food aid to Africa would total
Fund, and to United Nations activities in
about $3.6 billion under the request, compared
Africa.
with an estimated $3.4 billion being allocated
in FY2005.
USAID Administrator Andrew Natsios
has testified that in FY2005, the aid program
U.S. aid to Africa reached a peak in
is emphasizing peace in Sudan, ending famine
1985, when global competition with the So-
in Ethiopia, and combating HIV/AIDS. He
viet Union was at a high point. As the Cold
has also stressed the importance of agricul-
War eased, security assistance levels for
tural development. In a June 26, 2003,
Africa began to drop. In 1995, at the outset of
speech, President Bush described a “partner-
the 104th Congress, substantial reductions in
ship” with Africa including support for secu-
aid to Africa had been anticipated, as many
rity and development. In August 2002, the
questioned the importance of Africa to U.S.
Administration announced initiatives on
national security interests in the post-Cold
access to potable water, clean energy, reduc-
War era. As the debate went forward, how-
ing hunger, and development and conservation
ever, congressional reports and bills acknowl-
in the Congo River basin. The initiatives are
edged U.S. humanitarian, economic, and other
to make extensive use of public-private part-
interests in Africa. Aid levels did fall, but
nerships. As part of its counterterrorism ef-
began a gradual recovery in FY1997. Assis-
forts, the Administration has also launched
tance through the Child Survival and Develop-
initiatives to strengthen security forces in the
ment Assistance (DA) accounts has now
Sahel region and in East Africa.
leveled off, but aid to Africa is reaching new
highs due to aid through the Global AIDS
The overall level of funding for aid to
Initiative.
Africa remains a continuing subject of debate.
Other issues include the eligibility of African
U.S. assistance finds its way to Africa
countries for aid through the Millennium
through a variety of channels, including the
Challenge Account and U.S. support for the
USAID-administered DA and Child Survival
New Partnership for Africa’s Development
programs, food aid programs, and refugee
(NEPAD), an African initiative linking in-
assistance. The Peace Corps is expanding in
creased aid with policy reform.
Africa and plans to have about 2,700 volun-
Congressional Research Service ˜ The Library of Congress
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MOST RECENT DEVELOPMENTS
In February 2006, the Bush Administration submitted a supplemental appropriations
request for Iraq, Afghanistan, funding for the Gulf Coast hurricanes, and other foreign policy
priorities. The Administration requested 514.1 million for Sudan/Darfur. On March 16,
2006, the House approved $618.1 million: $499.1 million for Darfur ($66.3 million for
IDFA, $11.7 million for refugees, $173 million for African Union peacekeeping, $150
million for food aid, $98.1 million for CIPA-U.N. peacekeeping), and $119 million for
southern Sudan ($12.3 million for refugees, $75 million for food aid, $31.7 for CIPA-U.N.
peacekeeping). On April 4, 2006, the Senate Appropriations Committee approved $564
million for Sudan/Darfur: $125 million for southern Sudan and $439 million for Darfur. On
May 4, 2006, the full Senate approved $624 million for Sudan: $125 million for southern
Sudan and $499.1 million for Darfur. In mid-June, the House and Senate approved the
conference report, and on June 15, President Bush signed H.R. 4939. The conference
approved $618.1 million for Darfur and southern Sudan.
Moreover, the conference approved $63.8 million for Liberia for refugee support and
in Economic Support Fund. The conferees also approved $125 million in food aid for East
and Central Africa and $25 million in drought relief support for West and the Horn of Africa.
BACKGROUND AND ANALYSIS
U.S. Aid to Africa: An Overview
Bilateral Aid
U.S. assistance finds its way to Africa through a variety of channels. Bilateral or
country-to-country aid, also known as direct assistance, is given through non-governmental
organizations (NGOs) or private and voluntary organizations (PVOs), contractors, and
African government ministries and agencies. Multilateral aid, or indirect assistance, is given
first to international financial institutions (IFIs) and U.N. agencies, which in turn channel it
to Africa through their own programs.
Background. Figure 1 traces U.S. economic assistance to Africa, including food aid,
in constant (inflation-adjusted) dollars since World War II. U.S. bilateral aid to the region
rose sharply in the early 1960s as most African countries achieved independence. This was
also a time of intense Cold War competition with the Soviet Union. Aid reached another
peak in 1985, when famine struck wide areas of sub-Saharan Africa. The peak may also
have resulted in part from heightened Cold War competition, reflected in President Reagan’s
1983 description of the Soviet Union as an “evil empire.”
Toward the end of the 1980s, competition with the Soviet Union began to fade as a U.S.
priority, while efforts to reduce the U.S. budget deficit began to intensify, contributing to an
overall reduction in assistance to Africa. Moreover, policymakers were placing increased
emphasis on human rights and commitment to economic reform programs in making their
decisions on aid allocations. Consequently, aid to some African countries that had been
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major Cold War aid recipients, such as Zaire (now the Democratic Republic of the Congo)
and Liberia, was sharply reduced. Nonetheless, there was another spike in aid in 1992, when
famine struck the Horn of Africa and the southern part of the continent. Aid then dropped
again, with the reductions coming almost entirely in the security-oriented programs: military
assistance (not included in Figure 1) and especially the Economic Support Fund (ESF). ESF
aid is a type of economic assistance allocated by the State Department, in consultation with
the U.S. Agency for International Development (USAID), with the objective of promoting
U.S. security interests. From the mid-1980s, many in Congress and in the wider aid-oriented
community had come to believe that the security assistance programs in Africa had grown
too large and that more U.S. aid should be used to promote long-term development.
Figure 1. U.S. Economic Aid to Africa
Millions of Constant 2005 $, Fiscal Years
3500
3000
2500
2000
1500
1000
500
0
1950
1960
1970
1980
1990
2000 2005
In 1995, at the beginning of the 104th Congress, proposals to restructure and reduce the
U.S. foreign assistance program raised questions about the future of U.S. aid to sub-Saharan
Africa. Many questioned the strategic rationale for assisting Africa in the post-Cold War era,
and asserted that 30 years of U.S. assistance had accomplished little — whether in terms of
promoting economic growth and democratization, or achieving other objectives. The critics
generally favored humanitarian assistance, but sought sharp cuts in other programs. As the
aid debate proceeded, however, it became apparent that cuts for Africa would be less than
initially anticipated. The view that the United States has important humanitarian, economic,
and other objectives in Africa was vigorously asserted by supporters of the Africa aid
program, and came to be reflected in report language on the major foreign assistance bills,
as well as in the bills themselves. Aid did drop back to the 1990 level in 1996, but a slow
recovery began in FY1997.
A major increase in aid took place in FY2003 because of large quantities of food aid
provided to Ethiopia and southern Sudan, as well as a boost in spending through the Child
Survival and Health Programs Fund in response to the African HIV/AIDS pandemic. Figure
2, which excludes food aid, shows another major development in the assistance program:
sharp increases resulting from spending under the Global HIV/AIDS Initiative (GHAI),
administered by the Department of State. GHAI is the principal component of the
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President’s Emergency Plan for AIDS Relief (PEPFAR) and began operations in FY2004.
Assistance through GHAI to the 12 PEPFAR focus countries in Africa was an estimated
$264 million in FY2004 and $781 million in FY2005, and reached $1.2 billion under the
FY2006 request; while the USAID programs, taken together, leveled off. These programs
are Child Survival and Health, Development Assistance (DA), and the Economic Support
Fund (ESF), as well as Transition Initiatives (TI), a new program that was created under the
FY2006 foreign assistance request to promote stabilization, reform, and post-conflict
reconstruction in fragile states. GHAI assistance includes the provision of antiretroviral
therapy, safe injections, safe blood supplies, and abstinence/faithfulness education. Figure
1 will likely show continued sharp growth in aid to Africa in 2005 once food aid being
provided from emergency reserves to Niger and other countries is attributed to Africa in
USAID data. (Table 3 provides detail on these and other programs that channel aid to
Africa.)
Figure 2. U.S. Non-Food Economic Aid to Africa
Millions of Current $, Fiscal Years
2500
2000
1500
1000
500
0
1996
1998
2000
2002
2004
2006R
Global Aids Initiative
DA, Child Survival, ESF, TI
DFA and Child Survival assistance. Falling ESF levels threatened the overall
scale of the sub-Saharan aid program after 1985, and this threat led to the creation of the
Development Fund for Africa (DFA), which specifically earmarked a minimum level of the
worldwide Development Assistance (DA) program for the region. Obligations for sub-
Saharan Africa projects under the DFA reached $846 million in FY1992, but dropped well
below $800 million in subsequent years despite efforts by some Members to increase the
DFA appropriation to $1 billion or more. The DFA was last earmarked by Congress in the
FY1995 appropriations, when $802 million was appropriated, and DA for Africa has since
been provided out of the worldwide Development Assistance appropriation.
For FY1996, Congress began to appropriate another type of assistance: the Child
Survival and Disease Programs Fund, renamed the Child Survival and Health Programs Fund
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(CSH) in FY2002, which has channeled substantial amounts of aid to Africa. In recent years,
annual USAID presentations to Congress on the budget request for aid to Africa have varied
both with respect to using the term DFA and with respect to including CSH aid in an overall
DA amount or in breaking out CSH assistance and DA separately. This has left the
terminology governing aid to Africa somewhat confused. However, appropriations bills now
treat CSH and DA as separate programs, and that practice is followed in this issue brief.
Meanwhile, the term “DFA” is rarely used today, although the Development Fund for Africa
is mentioned in the Foreign Affairs Authorization (S. 600) reported in the Senate (S.Rept.
109-35) on March 10, 2005 (see below, Legislation).
Economic and Security Assistance
Table 1 ranks African countries that would receive more than $5 million under the
FY2006 request through a wide range of U.S. economic and security assistance programs,
including the Global HIV/AIDS initiative but not food aid and disaster assistance.
Madagascar and Cape Verde have agreed to $110 million compacts with the Millennium
Challenge Corporation (see below), but information on the annual allocation of this aid is not
yet available and it is not included here.
The high aid level for Uganda reflects not only U.S. backing for its struggle against
AIDS, but also a view among policymakers that Uganda’s “[p]rosperity and stability are
essential to growth and stability in the east and central African region” generally (USAID
Congressional Presentation, FY2004). Kenya is going through a democratic transition
following multi-party elections in December 2002; and with Ethiopia, Nigeria, South Africa,
and Djibouti, it is regarded as a strategic partner in the war on terrorism. Sudan’s relatively
high rank reflects U.S. assistance directed to southern Sudan and is focused on conflict
prevention, food security, and primary health care. (Aid for Darfur is being provided
principally through disaster relief, refugee assistance, and Contributions for International
Peacekeeping. For further information, see CRS Issue Brief IB98043, Sudan: Humanitarian
Crisis, Peace Talks, Terrorism, and U.S. Policy, by Ted Dagne.) Policymakers have wanted
to show continuing support for South Africa’s post-apartheid transition, which began in 1994
with the country’s first universal suffrage elections. Moreover, South Africa has the world’s
largest population of HIV/AIDS victims, with an estimated 5 million infected. Aid for
Zimbabwe focuses on the struggle against HIV/AIDS, expanding opportunities for
participation in political decision making, and expanding economic opportunities for the
disadvantaged. No assistance is channeled through the Zimbabwe government.
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Table 1. Leading U.S. Assistance Recipients in Africa
($ millions)
FY2007
FY2006
FY2005
FY2004
Country
Request
Request
Estimate
Actual
Uganda*
232.6
220.4
148.6
112.8
Kenya*
334.9
212.9
159.1
101.2
South Africa*
359.9
189.9
139.4
99.1
Nigeria*
320.2
175.7
130.1
80.2
Zambia*
189.6
160.0
113.4
82.1
Ethiopia*
283.8
145.0
114.1
74.3
Tanzania*
189.7
127.5
103.4
58.9
Sudan
205.8
112.4
200.9
170.7
Mozambique*
156.9
81.5
80.3
59.9
Liberia
89.9
89.8
44.1
203.0
Rwanda*
93.9
85.0
50.5
35.9
Namibia*
82.1
58.8
44.2
26.8
Botswana*
60.4
43.7
30.5
11.7
Mali
37.7
39.2
38.6
43.0
Dem. Rep. Congo
39.4
33.5
38.0
40.4
Ghana
37.9
33.4
40.3
41.5
Malawi
32.5
32.9
33.3
34.8
Senegal
33.1
30.0
29.9
34.1
Côte d’Ivoire*
47.1
30.0
20.9
7.5
Madagascar
22.0
22.8
22.8
23.3
Angola
29.8
20.7
21.5
23.4
Guinea
12.9
20.5
17.7
21.9
Benin
12.0
17.9
17.9
18.4
Zimbabwe
15.2
14.3
13.8
15.5
Djibouti
8.3
9.3
6.3
7.1
Sierra Leone
6.9
9.0
11.3
9.2
Eritrea
.845
6.9
10.1
8.2
Burundi
9.6
6.1
6.4
6.4
Chad
5.9
5.2
3.0
3.1
Source: USAID. Amounts exclude food aid.
Note: All amounts include economic and security assistance, as well as assistance under the Global
AIDS Initiative.
* Global AIDS Initiative “focus” country. Estimated allocations included.
Food Aid. Emergency food aid to Africa fluctuates in response to the continent’s
needs, and the amount provided by the end of a fiscal year often exceeds the initial request.
The additional amount is taken from a food aid reserve fund. Emergency food aid is
provided under Title II of the P.L. 480 program (named for P.L. 83-480, enacted in 1954),
which is implemented by USAID in cooperation with the Department of Agriculture. For
further information on food assistance programs, see CRS Issue Brief IB98006, Agricultural
Export and Food Aid Programs, by Charles E. Hanrahan.)
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Peace Corps. The Peace Corps expects to have more than 2,700 Peace Corps
Volunteers (PCVs) serving in 26 sub-Saharan countries by the end of FY2005, up from an
estimated 1,900 in 2002, because of the Administration’s Peace Corps expansion program.
(For further information, see CRS Report RS21168, The Peace Corps: Current Issues, by
Curt Tarnoff.) Under the Peace Corps Act (P.L. 87-293), volunteers are to help the poorest
people meet their basic needs, to promote a better understanding of the American people, and
to promote a better understanding of other peoples on the part of Americans.
Security Assistance. The security assistance program in Africa, which had declined
with the end of the Cold War, has expanded in recent years, primarily in response to
widening conflict and political instability in Africa. Economic Support Fund aid has been
used to support economic reform in Nigeria, a “safe skies” program to improve African air
traffic safety, human rights and democracy education, and other objectives. ESF aid is also
helping strategic partners in the war on terrorism through cooperation on border control,
freezing terrorist assets, implementation of the peace agreement in southern Sudan, and other
activities. In addition, the Defense Department conducts AIDS prevention education
programs, primarily with African militaries.
Table 2. Contributions for International Peacekeeping Activities
($ millions)
Operation
FY2006
FY2005
FY2004
(Request)
(Estimate)
(Actual)
War Crimes Tribunal - Rwanda (UNICTR)
13.7
16.4
16.3
Sierra Leone (UNAMSIL)
3.7
47.4
71.0
Democratic Republic of the Congo (MONUC)
202.3
249.1
30.1
U.N. Operations in Ethiopia/Eritrea (UNMEE)
32.8
50.4
49.5
Burundi Operation (ONUB)
89.9
94.1
41.6
U.N. Mission in Liberia (UNMIL)
159.2
134.3
290.3
Sudan/Darfur
250.0
250.0
U.N. Operation in Côte d’Ivoire (UNOCI)
71.9
112.7
82.0
Total
823.5
954.3
580.9
(Numbers may not add due to rounding.)
Through the Peacekeeping Operations (PKO) program, the United States supported the
Africa Crisis Response Initiative (ACRI), which trained small units of African armies for
possible peacekeeping duties, as well as for other regional peacekeeping initiatives. In
FY2004, ACRI was succeeded by the Africa Contingency Operations Training Assistance
(ACOTA), which focuses on training trainers and on programs tailored to individual country
needs. Foreign Military Financing (FMF) resumed in FY1999 and under the FY2005 request
under the FY2005 request would be used to strengthen counterterrorism capabilities in
Africa, bolster border security, and help Kenya protect itself against terrorist infiltration from
Somalia. International Military Education and Training (IMET) programs in Africa are
aimed at promoting professionalism and respect for democracy and human rights, while
enhancing capabilities for participation in peacekeeping operations. These programs
typically run well under $1 million per country.
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The United States contributes to United Nations peacekeeping operations in Africa and
elsewhere through a program entitled Contributions to International Peacekeeping Activities
(CIPA, Table 2). Funds for CIPA are appropriated in the legislation that funds the
Departments of Commerce, Justice, and State, rather than in the Foreign Operations
appropriation, which governs foreign assistance.
Regional Programs. Both DA and ESF funds are used to support USAID’s Africa
Regional Programs, which are designed to confront challenges that span the borders of
African countries. These include regional programs in health, conflict prevention,
democracy, education, and agriculture. The Initiative for Southern Africa supports efforts
to promote trade and investment through the Southern Africa Enterprise Development Fund
and other programs. The Trade for African Development and Enterprise (TRADE) initiative
aims at strengthening business and promoting policy and regulatory reform throughout the
sub-Saharan region. The Africa Trade and Investment Policy (ATRIP) program, which
provides technical assistance, training, and other aid to African countries implementing free-
market economic reforms, is part of this initiative. For FY2005, the Administration sought
$4 million in FMF for an African Coastal and Border Security program.
African Development Foundation
The African Development Foundation (ADF) has a unique mandate to make small
grants directly to African cooperatives, youth groups, and other self-help organizations.
These grants usually range from less than $20,000 to a maximum of $250,000, although
appropriations language permits a waiver of the $250,000 ceiling. In addition, the ADF
supports grassroots development research by African scholars and promotes the
dissemination of development information at the community level. By law, the ADF is
limited to 75 employees. Its seven-member Board of Directors must include five
private-sector representatives. ADF does not station U.S. employees in overseas posts, but
instead works through local-hires and periodic field visits. For FY2006, the ADF received
an appropriation of $23 million in the Foreign Operations Appropriations Act.
Refugee and Disaster Assistance
The United States responds to African humanitarian crises in part with Title II food aid,
discussed above, and in part through its refugee and disaster assistance programs. Most
refugee assistance comes from the Migration and Refugee Assistance (MRA) account and
goes to the United Nations High Commissioner for Refugees and international organizations,
as well as private and voluntary organizations assisting African refugees. In addition, the
Emergency Refugee and Migration Assistance (ERMA) account, created in 1962 to deal with
unexpected refugee situations, has been drawn upon for African emergencies several times
in recent years. USAID’s Office of Foreign Disaster Assistance (OFDA) also plays a major
role in responding to African crises. “Situation Reports” published by USAID’s Office of
Foreign Disaster Assistance monitor the U.S. response to African humanitarian crises
through food aid and other emergency assistance. To find these reports, visit
[http://www.usaid.gov/] and click on “Our Work” and “Humanitarian Assistance.”
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Multilateral Assistance
The United States provides aid to Africa indirectly through international financial
institutions (IFIs) and United Nations agencies. World Bank lending through its “soft loan”
affiliate, the International Development Association (IDA) is the largest single source of
development capital in Africa. IDA loans, which are considered a form of aid since they are
virtually interest-free and carry extended repayment periods, have focused on strengthening
public sector management, transportation, agriculture, and various social problems. IDA
has been particularly active in assisting efforts by the recipient countries to carry out free-
market economic reforms. In 2004, IDA devoted about 45% of its new loan commitments
to sub-Saharan Africa, so that about $408 million of the $907 million U.S. contribution to
IDA in that year can be said to have gone indirectly to the region. The African Development
Fund (AfDF) has been another major channel for indirect U.S. aid to Africa. The Fund, an
affiliate of the Africa-based African Development Bank (AfDB), makes loans on highly
concessional terms to the poorest African countries. The AfDB lends on roughly commercial
terms to creditworthy African borrowers, but at the same time, it holds 50% of the voting
power in the AfDF.
Total U.S. Assistance
Table 3 lists most components of U.S. assistance to sub-Saharan Africa and indicates
that under the FY2006 request, assistance would rise to $3.6 billion, not including food aid,
up from $3.5 billion in FY2005. Table 3 includes an additional $674.4 million in FY2005
aid for Africa announced by President Bush in a June 7, 2005, press conference with
Britain’s Prime minister Tony Blair. This additional food, disaster, and refugee assistance
will be drawn from general funds already appropriated by Congress, including funds in the
FY2005 Emergency Supplemental Appropriations (P.L. 109-13), signed into law on May 11,
2005. The components of the additional aid are $90 million in International Disaster and
Famine Assistance, $94.4 million in Migration and Refugee Assistance, $240 million in P.L.
480 Title II food aid, and $250 million in food aid from the Bill Emerson Humanitarian
Trust, administered by the Secretary of Agriculture.
FY2006 Request and Congressional Action. The Bush Administration’s
FY2006 assistance request for sub-Saharan Africa, released on February 7, 2005, would
continue the pattern of increasing aid for the region, largely due to the expansion of the State
Department’s Global HIV/AIDS initiative. Aid through this program would grow by more
than 50%, to $1.2 billion, as compared to FY2005, while aid under the Child Survival and
Development Assistance programs would decline. Development Assistance funds totaling
$95 million for Ethiopia and Sudan have been shifted to the new Transition Initiatives
program for fragile, post-conflict states. Liberia, where elections are scheduled for October,
would receive $75 million through the Economic Support Fund. The Administration
requested $3 million for the Millennium Challenge Corporation (MCC) worldwide, although
$5 billion in FY2006 funding had been anticipated under the original Millennium Challenge
Account program. (See below, “Issues.”)
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Table 3. Assistance Designated for Sub-Saharan Africa
($ millions)
FY2006
FY2005
FY2004
FY2003
FY2002
Program
Request
Estimate
Actual
Actual
Actual
Child Survival & Health Fund
325.9
356.8
477.3
541.1
424.4
Global HIV/AIDS Initiative
1,206.3
781.5
263.8
Development Assistance
428.5
547.4
466.7
490.7
454.0
Transition Initiatives
95.0
—
—
—
—
ESF
151.9
104.2
74.1
109.4
120.0
Peace Corps
68.7
75.7
62.2
63.3
53.7
African Dev. Foundation
18.9
18.8
18.6
18.7
16.5
Migration and Refugee Assistance
256.5
323.8
226.4
228.5
187.5
African Development Bank
5.6
4.1
5.1
5.1
5.1
African Development Fund
135.7
105.2
112.1
107.4
100.0
Liberia/Sudan in Other Appropriations
385.0
Millennium Challenge Account
—
—
—
—
—
Subtotal, Economic & Humanitarian
2,693.0
2,317.5
2,091.3
1,564.2
1,361.2
International Narcotics & Crime
4.2
10.5
6.9
6.7
7.5
Peacekeeping Operations
41.4
133.2
30.2
78.1
54.9
IMET
11.0
10.8
11.2
9.9
10.3
Foreign Military Financing
24.0
26.3
20.9
28.0
33.5
Contributions to Int’l Peacekeeping
823.5
954.3
580.9
366.7
513.0
Nonprolif., Anti-terrorism, Demining
30.4
31.5
25.8
19.7
12.1
DOD AIDS Education, Af. militaries
0.0
7.5
4.2
7.0
14.0
Subtotal, Military and Other
934.5
1,174.1
680.1
516.1
645.3
TOTAL
3,627.5
3,491.6
2,771.4
2,080.3
2,006.5
Food Aid
228.8
1,013.9
1,187.9
1,165.9
462.9
Total Including Food Aid
3,856.3
4,505.5
3,959.3
3,246.2
2,469.4
On November 14, 2005, President Bush signed the Foreign Operations Appropriations
bill (P.L. 109-102). As in previous years, appropriations for most Africa-specific programs
are not earmarked in the bill, but the bill provides more than requested worldwide for Child
Survival and Health programs as well as Development Assistance, suggesting that the
Administration will have ample resources for meeting its proposals for Africa through these
programs. By contrast, the Economic Support Fund and the Millennium Challenge Account
receive less than requested worldwide. The bill provides $2 million less than requested for
the African Development Bank, meets the Administration’s requests for the African
Development Fund, and provides $23 million for the African Development Foundation, as
compared to an Administration request of $18.8 million.
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Table 4. Assistance Requested and Appropriated Worldwide
($ millions)
Program
FY2006 Request
FY2006 Appropriated
Child Survival & Health Fund
1,251.5
1,585.0
Global HIV/AIDS Initiative
1,970.0
1,995.0
Development Assistance
1,103.2
1,524.0
Transition Initiatives
95.0
40.0
ESF
3,036.4
2,634.0
Peace Corps
345.0
322.0
African Dev. Foundation
18.9
23.0
Migration and Refugee Assistance
892.8
791.0
African Development Bank
5.6
3.6
African Development Fund
135.7
135.7
Millennium Challenge Account
3,000.0
1,770.0
International Narcotics & Crime
523.9
477.2
Peacekeeping Operations
195.8
175.0
IMET
86.7
86.7
Foreign Military Financing
4,588.6
4,500.0
Contributions to Int’l Peacekeeping
1,035.5
1,035.5
Nonprolif., Anti-terrorism, Demining
440.1
410.1
Food Aid
885.0
1,150.0
Comparison with Other Donors
According to figures compiled by the Organization for Economic Cooperation and
Development (OECD), the United States was the largest bilateral donor of net bilateral
Official Development Assistance (ODA) to sub-Saharan Africa, in 2003, the most recent year
for which data are available, followed by France, Germany, and the United Kingdom.
However, the European countries and the European Communities together provided
considerably more to Africa than the United States. ODA includes a wide-range of non-
military aid disbursements. Many countries continued to give a larger proportion of their
assistance to sub-Saharan Africa than the United States. The region received about 32% of
U.S. ODA in 2002, according to the OECD, in contrast to 57% of French aid , 37% of British
aid, and 47% of German aid. Japan was the eighth ranking donor to Africa in 2003,
according to the OECD, providing about 8% of its aid to the region. On May 24, 2005,
European Union foreign and development ministers pledged that their governments would
reach the United Nations target of providing 0.7% of GDP in foreign aid in 10 years. As an
interim target, the Europeans would provide $25 billion in added annual aid by 2010. Some
cautioned, however, that these pledges could be affected by budget difficulties in some
European countries. France’s President Jacques Chirac announced on August 29, 2005, that
France would propose a tax on air travel to fund additional aid to Africa. The proposal was
made at the United Nations World Summit, which brought more than 170 heads of state and
government to U.N. headquarters in New York, September 14-16. Some heads of state
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spoke favorably about the proposal, but some developing country delegates expressed
concern that the new proposal was offered to draw attention away from the point that official
development aid (ODA) was allegedly too low to achieve the Millennium Development
Goals (MGD).
Recent Trends in U.S. Aid
U.S. officials continue to stress a strong commitment to assisting Africa. In a June 26,
2003, speech to a meeting of the Corporate Council on Africa, President Bush spoke of a
“partnership” with Africa, including U.S. help in establishing peace and security, making
advances in health and literacy, and developing free economies through aid and trade.
During the speech, part of the run-up to his July 7-12, 2003, trip to Africa, the President
announced $100 million in anti-terrorism assistance over 15 months to countries in East
Africa and $200 million over five years both to train teachers in Africa and to provide
textbooks through Historically Black Colleges and Universities. Secretary of State Powell,
addressing the Corporate Council on June 27, 2003, said that Africa’s “boundless potential”
could not be realized unless the continent moved against corruption.
USAID officials have testified that the United States has had a number of successes in
promoting sustainable development, democracy, and conflict resolution. They point to
Ghana, Uganda, Zambia, and Mali, as examples of successful political and economic
transitions, while Mozambique and South Africa are cited as models of transition from
conflict to peace as well. Skeptics of USAID’s programs, noting, for example, widespread
reports of corruption and undemocratic practices in Zambia and a slow rate of economic
growth in post-apartheid South Africa, question whether economic and political gains are
genuine or will endure. With respect to conflict resolution, some note that two leading
recipients, Uganda and Ethiopia, have recently been involved in armed conflicts, as have
some lesser recipients, including Rwanda, Zimbabwe, Eritrea, and Angola. Supporters of
the program respond by acknowledging that problems inevitably arise within and among
countries that face serious challenges with deep historical roots, but insist that overall trends
in Africa are positive and that long-term development efforts cannot be interrupted every
time difficulties occur.
USAID also maintains that the DFA and CSD assistance have helped African countries
achieve increases in child immunization and the use of oral rehydration therapy, shift their
health policies towards an active emphasis on AIDS prevention, increase the prevalence of
contraceptive use, and boost primary school enrollments. In agriculture, USAID asserts that
DA has helped liberalize agricultural markets, increase smallholder production; and facilitate
the development of new seed varieties. DA has also been used to assist governments
undertaking macro-economic reforms, including reductions in the size of government
bureaucracies and the privatization of government enterprises.
The Clinton Administration launched several special development initiatives in Africa.
The Greater Horn of Africa Initiative (GHAI), aims at easing the perennial food insecurity
in a region extending from Eritrea and Ethiopia to Tanzania by promoting collaboration and
consultation on food security strategies. The Initiative for Southern Africa (ISA) reflects
USAID’s recognition of the region’s economic potential and its desire to reinforce South
Africa’s democratic transition as a model for the rest of the continent. The initiative includes
a Democracy Fund, to make grants in the region in support of democracy, and a Southern
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Africa Enterprise Development Fund (SAEDF), to promote indigenous business
development and ownership.
The Leland Initiative aims at connecting 20 sub-Saharan countries to the Internet. The
initiative is named for the late Representative Mickey Leland, founder of the House Select
Committee on Hunger, who died in a 1989 plane crash while on his way to investigate
conditions in an Ethiopian refugee camp. Technicians from several U.S. government
agencies are working to implement the project, which will make Internet access available to
“all sectors of the African development community,” including NGOs, government agencies,
“private developers,” and individuals. (USAID press release, June 6, 1996.)
South Africa has been a special focus for USAID for several years. After the
installation of a democratically-elected government in May 1994, President Clinton pledged
the United States to $600 million in aid to South Africa over three years. The United States
guaranteed loans for housing, electrification, and small business development. Resources
have also been used to support the growth of small, medium, and micro-enterprises
(SMMEs) in South Africa; strengthen the South African justice system; improve education;
promote primary health care; and foster majority involvement in business.
The Africa: Seeds of Hope initiative grows out of congressional action in 1998, when
the Africa: Seeds of Hope Act (P.L. 105-385) was passed. The proposal was strongly
supported by Bread for the World, which describes itself as “a nationwide Christian citizens
movement seeking justice for the world’s hungry....” The act supports USAID’s Africa Food
Security Initiative by encouraging a refocus on agriculture and rural development. A
presidential report on implementation of the act argued that even more could be done in
agriculture if more funds were available.
President Bush, speaking at the Leon Sullivan Summit in Washington on June 20, 2002,
announced a new Africa Education Initiative. The President promised to double U.S. aid for
education in the region, bringing total spending to $200 million over the next five years. The
President also announced that he would visit Africa in 2003. As noted above, Africa will
also benefit if two other Bush initiatives win approval: the Global AIDS Initiative,
announced by the President in his State of the Union Message on January 28, 2003, and the
Millennium Challenge Account (see below).
Counterterrorism is the focus of other recent assistance initiatives. The Pan-Sahel
Initiative (PSI) is a joint Defense and State Department program that provides training and
equipment to the armed forces of Mauritania, Chad, Niger, and Mali. According to
Administration officials, the initiative has helped these countries respond to the threat posed
by Algeria-based Islamist guerrillas. The East African Counter-Terrorism Initiative (EACTI)
is training law-enforcement officers in Kenya and other countries.
Sustainable Development Initiatives. On August 23, 2002, the Department of
State released information on four initiatives or “signature partnerships,” which were
formally announced at the World Summit on Sustainable Development (WSSD) in
Johannesburg on August 29. These initiatives were the Water for the Poor Initiative, the
Initiative to End Hunger in Africa, the Congo Basin Forest Partnership, and the Clean Energy
Initiative. The initiatives, which drew praise from the United Nations representative to the
conference, stress “public-private partnerships,” through which U.S. assistance funds would
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be used to leverage investments in Africa by other governments, international organizations,
NGOs, and the private sector. For example, under the West Africa Water Initiative, part of
the Water for the Poor Initiative, USAID would provide $4.4 million as a partner in a $41
million, five-year effort to supply potable water and sanitation to rural villages in Ghana,
Mali, and Niger. Other partners would include the Conrad N. Hilton Foundation and
UNICEF. Skeptics of the initiatives maintain that the amounts of U.S. assistance being
offered are modest and seem to come largely from funds that have already been budgeted or
promised. Some also complain that the funds might be used to promote private business
interests. (New York Times, August 30, 2002.) The initiative to end hunger aims at
harnessing science and technology to boost agricultural production and at strengthening
markets to assist small farmers.
In addition to the signature partnerships, USAID released documents at WSSD
reviewing U.S. actions intended to prevent famine in southern Africa and fight infectious
disease. Another document reported on a $15 million investment guarantee by the U.S.
Overseas Private Investment Corporation (OPIC) to support the construction of low-income
housing and associated infrastructure in South Africa. The guarantee would help a U.S. for-
profit company support a bank making construction loans to private developers and
contractors. (OPIC press release, August 29, 2002.)
Issues
Millennium Challenge Account. In a March 14, 2002 speech, President Bush
outlined a proposed Millennium Challenge Account (MCA), which would increase foreign
aid worldwide by $5 billion per year over three years, starting in FY2004. The account
would provide additional aid to countries whose governments promote good governance,
invest in people through education and health care, and promote open markets. Although the
promise of increased aid won praise from many observers, some worried that most countries
in Africa will not be able to meet the Fund’s eligibility criteria. In May 2004, the
Millennium Challenge Corporation announced that 8 African countries had been determined
to be eligible to receive grants: Benin, Cape Verde, Ghana, Lesotho, Madagascar, Mali,
Mozambique, and Senegal, and agreements have been reached with Madagascar and Cape
Verde for MCA programs valued at $110 million each. Nonetheless, the program has been
criticized for what some see as a slow disbursal of funds, and as noted above, overall funding
for the MCA is turning out to be less than President Bush initially proposed. For further
information, see CRS Report RL32427, The Millennium Challenge Account: Implementation
of a New U.S. Foreign Aid Initiative, by Larry Nowels; and U.S. Government Accountability
Office Report GAO-05-625T, Millennium Challenge Corporation: Progress Made on Key
Challenges in First Year of Operations (April 27, 2005).
AIDS. The level of funding for HIV/AIDS programs in Africa remains a major focus
of interest. This issue is covered in CRS Issue Brief IB10050, AIDS in Africa, by Nicolas
Cook. See also CRS Report RS21181, HIV/AIDS International Programs: Appropriations,
FY2003-FY2006, by Tiaji Salaam-Blyther.
NEPAD and the G8. In 2001, African leaders approved the New Partnership for
Africa’s Development (NEPAD), championed by the presidents of South Africa, Nigeria,
Senegal, and others. Under the plan, African countries are to intensify efforts to eradicate
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poverty, strengthen democracy, deal with corruption, and resolve conflicts in exchange for
debt forgiveness from the developed countries as well as increased aid, trade, and
investment. NEPAD includes a “peer review mechanism” intended to assure that African
governments are held accountable for their performance with respect to governance and
economic policy.
At the June 2002 G-8 summit at Kananaskis, Canada, attended by key African leaders,
donors launched an Africa Action Plan to be implemented as NEPAD reforms move forward.
Whether the G8 donors and Africa are living up to their Kananaskis promises is
controversial. Britain will host the July 2005 G8 summit in Scotland, and Prime Minister
Tony Blair intends to focus the meeting on Africa once again. Sweeping proposals for 100%
debt relief, sharply increased aid, and the removal of trade barriers are expected to be
discussed. For more information, see CRS Report RL32796, Africa, the G8, and the Blair
Initiative, by Raymond W. Copson.
Other. The overall level of U.S. assistance to Africa could again emerge as an issue
in the foreign assistance debate, particularly in view of pressures from Britain and others for
a dramatic expansion of aid to Africa. Some observers express a number of frustrations with
aspects of the foreign assistance program, but these have had little impact on the
congressional aid debate to date. Some argue, for example, that reductions in operating
expenses have forced staff and mission cutbacks that complicate USAID’s ability to
implement the Africa DA program. Critics of this view maintain that USAID must deal with
budget constraints that affect other parts of the government as well. Some also maintain that
the Child Survival earmark has absorbed funds that might otherwise have been used to
promote long-term development, which in turn would promote better health among both
children and adults. Others argue, however, that the Child Survival program has channeled
funds to a critical, immediate humanitarian need, and that the American people strongly
support assistance that benefits impoverished children, funds HIV/AIDS programs, and
promotes vaccine research, among other objectives.
Meanwhile, a debate continues among scholars, analysts, and policymakers about
whether foreign aid is an effective means of spurring growth and poverty reduction in Africa;
what types of aid are most effective; and what role other measures, such as debt reduction
and the removal of trade barriers, might play. For a discussion of these issues, see CRS
Report RL32489, Africa: Development Issues and Policy Options, by Raymond W. Copson.
LEGISLATION
P.L. 109-102
Foreign Operations Appropriations, FY2006. For amounts, see above, FY2006 Request
and Congressional Action. The legislation earmarks not less than $50 million for drinking
water supply projects in Africa; permits IMET for the Democratic Republic of Congo and
Nigeria only through regular notification procedures; prohibits debt restructuring assistance
for Sudan unless the Secretary of the Treasury certifies that a democratically elected
government has taken office; prohibits FMF for Sudan; permits aid for Liberia, Sudan or
Zimbabwe only through regular notification procedures; earmarks up to $70 million for aid
to Sudan, but apart from humanitarian assistance, prohibits aid to the Sudanese government
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unless the Secretary of State certifies, among other requirements, that the government is
taking significant steps to disarm government-supported militia in Darfur; earmarks not less
than $17.5 million for the Congo Basin Forest Partnership, including not less than $2.5
million for the protection of great apes; permits assistance to countries where individuals
sought by the Sierra Leone and Rwanda war crimes tribunals are credibly alleged to be living
if the Secretary of State certifies that the governments of such countries are cooperating with
the tribunal, subject to a presidential waiver; requires the United States to oppose loans to
Zimbabwe through international financial institutions, except for humanitarian purposes,
unless the Secretary of State certifies that the rule of law has been restored. Signed by
President Bush on November 14, 2005.
H.R. 2601 (Christopher Smith)
Foreign Relations Authorization, FY2006 and FY2007. Authorizes $1 million for the
provision of four coastal patrol boats to Mozambique; authorizes $5 million in FY2006 and
$7.5 million in FY2007 for establishing obstetric fistula centers; encourages the Overseas
Private Investment Corporation (OPIC) to support investments in financial institutions in
sub-Saharan Africa; authorizes $12 million in each fiscal year to support the restoration of
democratic legitimacy in Zimbabwe; authorizes $4 million for a demonstration insurance
project for famine relief in Ethiopia; requires a report on expanding the Pan-Sahel Initiative
to become a robust counterterrorism program for the entire Saharan region; states sense of
Congress that the chocolate industry, NGOs, and the governments of Ghana and the Côte
d’Ivoire should continue their efforts to monitor child labor in the cocoa industry; states the
sense of Congress that the United States should assist the International Criminal Court in
bringing to justice those accused of genocide, war crimes, or crimes against humanity in
Darfur. Passed the House (351-78) July 20, 2005; received in the Senate July 22.
S. 600 (Lugar)
Foreign Affairs Authorization, FY2006 and FY2007. Authorizes $1.1 billion in
FY2006 and such sums as may be necessary in FY2007 for Development Assistance
worldwide, including the Development Fund for Africa; authorizes $18.85 million for the
African Development Foundation in FY2006 and such sums as may be necessary for
FY2007; affirms U.S. support for the Congo Basin Forest Partnership; authorizes funds to
strengthen judicial capacity in Africa and requires a report from the President on this effort
within six months of passage; authorizes $114.4 million in FY2006 for the Global Peace
Operations (GPOI) program, with an initial emphasis on Africa; authorizes assistance to
expand access to clean water; authorizes $325 million in FY2006 for transition initiatives,
including those requested for Sudan and Ethiopia. Reported in the Senate (S.Rept. 109-35)
March 10, 2005.
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Appendix: Selected Africa Assistance Acronyms
ACOTA
Africa Contingency Operations Training Assistance, successor to ACRI.
ACRI
Africa Crisis Response Initiative, which trained military units for peacekeeping.
ADF
African Development Foundation, U.S.-funded public corporation.
AfDB
African Development Bank, an Africa-based IFI.
AfDF
African Development Fund, affiliate of the African Development Bank.
ATRIP
Africa Trade and Investment Program, a USAID initiative.
CIPA
Contributions to International Peacekeeping Activities
CSH
Child Survival and Health Programs Fund.
DA
Development Assistance.
DFA
Development Fund for Africa, part of DA, not earmarked in recent years.
ERMA
Emergency Refugee and Migration Assistance, administered by State Department.
ESF
Economic Support Fund, a State Department program for promoting U.S. interests.
FMF
Foreign Military Financing, funds equipment purchases.
GHAI
State Department’s Global AIDS Initiative, part of PEPFAR.
IBRD
International Bank for Reconstruction and Development, The World Bank.
IDA
International Development Association, concessional loan affiliate of IBRD.
IFIs
International financial institutions.
IGAD
Inter-governmental Authority on Development, a Djibouti-based organization of
Horn of Africa states.
IMET
International Military Education and Training, a form of military assistance.
MRA
Migration and Refugee Assistance, a State Department program.
NEPAD
New Partnership for Africa’s Development, an African initiative.
NGOs
Non-governmental organizations.
OECD
Organization for Economic Cooperation and Development, an organization of
developed countries.
ODA
Official Development Assistance, the OECD’s concept of DA.
OFDA
Office of Foreign Disaster Assistance, a part of USAID.
PCVs
Peace Corps Volunteers
PEPFAR President’s Emergency Plan for AIDS Relief, a Bush Administration initiative.
PKO
Peacekeeping Operations account authorized by Part II, Chapter 6 of the Foreign
Assistance Act.
PVOs
Private and voluntary organizations
SAEDF
Southern Africa Enterprise Development Fund, a USAID program.
SMMEs
Small, medium, and micro-enterprises.
UNECA
United Nations Economic Commission for Africa, headquartered in Addis Ababa,
Ethiopia.
UNDP
United Nations Development Program
USAID
U.S. Agency for International Development
CRS-16
CRS Issue Brief for Congress
Received through the CRS Web
Africa: U.S. Foreign Assistance Issues
Updated June 19, 2006
Ted Dagne
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress
CONTENTS
SUMMARY
MOST RECENT DEVELOPMENTS
BACKGROUND AND ANALYSIS
U.S. Aid to Africa: An Overview
Bilateral Aid
Background
DFA and Child Survival assistance
Economic and Security Assistance
Food Aid
Peace Corps
Security Assistance
Regional Programs
African Development Foundation
Refugee and Disaster Assistance
Multilateral Assistance
Total U.S. Assistance
FY2006 Request and Congressional Action
Comparison with Other Donors
Recent Trends in U.S. Aid
Sustainable Development Initiatives
Issues
Millennium Challenge Account
AIDS
NEPAD and the G8
Other
LEGISLATION
Appendix: Selected Africa Assistance Acronyms
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Africa: U.S. Foreign Assistance Issues
SUMMARY
Under the Administration’s FY2006
teers there by the end of FY2005. The U.S.
foreign assistance request, U.S. aid to sub-
African Development Foundation makes small
Saharan Africa would continue to grow, due
grants to African cooperatives, youth groups,
to sharp increases through the State
and other self-help organizations. U.S. secu-
Department’s Global HIV/AIDS Initiative.
rity assistance, though still far below levels
Twelve “focus countries”in Africa are benefit-
seen in the 1980s, has increased in recent
ting substantially under this program. Assis-
years, primarily because of U.S. support for
tance through the Child Survival and Develop-
African peacekeeping initiatives. The World
ment Assistance programs would decline,
Bank’s International Development Associa-
although the Foreign Operations Appropria-
tion (IDA) is the principal multilateral channel
tions Act (P.L.109-102) provides more than
for U.S. aid, but the United States also con-
requested worldwide for these programs.
tributes to the African Development Bank and
Overall, non-food aid to Africa would total
Fund, and to United Nations activities in
about $3.6 billion under the request, compared
Africa.
with an estimated $3.4 billion being allocated
in FY2005.
USAID Administrator Andrew Natsios
has testified that in FY2005, the aid program
U.S. aid to Africa reached a peak in
is emphasizing peace in Sudan, ending famine
1985, when global competition with the So-
in Ethiopia, and combating HIV/AIDS. He
viet Union was at a high point. As the Cold
has also stressed the importance of agricul-
War eased, security assistance levels for
tural development. In a June 26, 2003,
Africa began to drop. In 1995, at the outset of
speech, President Bush described a “partner-
the 104th Congress, substantial reductions in
ship” with Africa including support for secu-
aid to Africa had been anticipated, as many
rity and development. In August 2002, the
questioned the importance of Africa to U.S.
Administration announced initiatives on
national security interests in the post-Cold
access to potable water, clean energy, reduc-
War era. As the debate went forward, how-
ing hunger, and development and conservation
ever, congressional reports and bills acknowl-
in the Congo River basin. The initiatives are
edged U.S. humanitarian, economic, and other
to make extensive use of public-private part-
interests in Africa. Aid levels did fall, but
nerships. As part of its counterterrorism ef-
began a gradual recovery in FY1997. Assis-
forts, the Administration has also launched
tance through the Child Survival and Develop-
initiatives to strengthen security forces in the
ment Assistance (DA) accounts has now
Sahel region and in East Africa.
leveled off, but aid to Africa is reaching new
highs due to aid through the Global AIDS
The overall level of funding for aid to
Initiative.
Africa remains a continuing subject of debate.
Other issues include the eligibility of African
U.S. assistance finds its way to Africa
countries for aid through the Millennium
through a variety of channels, including the
Challenge Account and U.S. support for the
USAID-administered DA and Child Survival
New Partnership for Africa’s Development
programs, food aid programs, and refugee
(NEPAD), an African initiative linking in-
assistance. The Peace Corps is expanding in
creased aid with policy reform.
Africa and plans to have about 2,700 volun-
Congressional Research Service ˜ The Library of Congress
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MOST RECENT DEVELOPMENTS
In February 2006, the Bush Administration submitted a supplemental appropriations
request for Iraq, Afghanistan, funding for the Gulf Coast hurricanes, and other foreign policy
priorities. The Administration requested 514.1 million for Sudan/Darfur. On March 16,
2006, the House approved $618.1 million: $499.1 million for Darfur ($66.3 million for
IDFA, $11.7 million for refugees, $173 million for African Union peacekeeping, $150
million for food aid, $98.1 million for CIPA-U.N. peacekeeping), and $119 million for
southern Sudan ($12.3 million for refugees, $75 million for food aid, $31.7 for CIPA-U.N.
peacekeeping). On April 4, 2006, the Senate Appropriations Committee approved $564
million for Sudan/Darfur: $125 million for southern Sudan and $439 million for Darfur. On
May 4, 2006, the full Senate approved $624 million for Sudan: $125 million for southern
Sudan and $499.1 million for Darfur. In mid-June, the House and Senate approved the
conference report, and on June 15, President Bush signed H.R. 4939. The conference
approved $618.1 million for Darfur and southern Sudan.
Moreover, the conference approved $63.8 million for Liberia for refugee support and
in Economic Support Fund. The conferees also approved $125 million in food aid for East
and Central Africa and $25 million in drought relief support for West and the Horn of Africa.
BACKGROUND AND ANALYSIS
U.S. Aid to Africa: An Overview
Bilateral Aid
U.S. assistance finds its way to Africa through a variety of channels. Bilateral or
country-to-country aid, also known as direct assistance, is given through non-governmental
organizations (NGOs) or private and voluntary organizations (PVOs), contractors, and
African government ministries and agencies. Multilateral aid, or indirect assistance, is given
first to international financial institutions (IFIs) and U.N. agencies, which in turn channel it
to Africa through their own programs.
Background. Figure 1 traces U.S. economic assistance to Africa, including food aid,
in constant (inflation-adjusted) dollars since World War II. U.S. bilateral aid to the region
rose sharply in the early 1960s as most African countries achieved independence. This was
also a time of intense Cold War competition with the Soviet Union. Aid reached another
peak in 1985, when famine struck wide areas of sub-Saharan Africa. The peak may also
have resulted in part from heightened Cold War competition, reflected in President Reagan’s
1983 description of the Soviet Union as an “evil empire.”
Toward the end of the 1980s, competition with the Soviet Union began to fade as a U.S.
priority, while efforts to reduce the U.S. budget deficit began to intensify, contributing to an
overall reduction in assistance to Africa. Moreover, policymakers were placing increased
emphasis on human rights and commitment to economic reform programs in making their
decisions on aid allocations. Consequently, aid to some African countries that had been
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major Cold War aid recipients, such as Zaire (now the Democratic Republic of the Congo)
and Liberia, was sharply reduced. Nonetheless, there was another spike in aid in 1992, when
famine struck the Horn of Africa and the southern part of the continent. Aid then dropped
again, with the reductions coming almost entirely in the security-oriented programs: military
assistance (not included in Figure 1) and especially the Economic Support Fund (ESF). ESF
aid is a type of economic assistance allocated by the State Department, in consultation with
the U.S. Agency for International Development (USAID), with the objective of promoting
U.S. security interests. From the mid-1980s, many in Congress and in the wider aid-oriented
community had come to believe that the security assistance programs in Africa had grown
too large and that more U.S. aid should be used to promote long-term development.
Figure 1. U.S. Economic Aid to Africa
Millions of Constant 2005 $, Fiscal Years
3500
3000
2500
2000
1500
1000
500
0
1950
1960
1970
1980
1990
2000 2005
In 1995, at the beginning of the 104th Congress, proposals to restructure and reduce the
U.S. foreign assistance program raised questions about the future of U.S. aid to sub-Saharan
Africa. Many questioned the strategic rationale for assisting Africa in the post-Cold War era,
and asserted that 30 years of U.S. assistance had accomplished little — whether in terms of
promoting economic growth and democratization, or achieving other objectives. The critics
generally favored humanitarian assistance, but sought sharp cuts in other programs. As the
aid debate proceeded, however, it became apparent that cuts for Africa would be less than
initially anticipated. The view that the United States has important humanitarian, economic,
and other objectives in Africa was vigorously asserted by supporters of the Africa aid
program, and came to be reflected in report language on the major foreign assistance bills,
as well as in the bills themselves. Aid did drop back to the 1990 level in 1996, but a slow
recovery began in FY1997.
A major increase in aid took place in FY2003 because of large quantities of food aid
provided to Ethiopia and southern Sudan, as well as a boost in spending through the Child
Survival and Health Programs Fund in response to the African HIV/AIDS pandemic. Figure
2, which excludes food aid, shows another major development in the assistance program:
sharp increases resulting from spending under the Global HIV/AIDS Initiative (GHAI),
administered by the Department of State. GHAI is the principal component of the
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President’s Emergency Plan for AIDS Relief (PEPFAR) and began operations in FY2004.
Assistance through GHAI to the 12 PEPFAR focus countries in Africa was an estimated
$264 million in FY2004 and $781 million in FY2005, and reached $1.2 billion under the
FY2006 request; while the USAID programs, taken together, leveled off. These programs
are Child Survival and Health, Development Assistance (DA), and the Economic Support
Fund (ESF), as well as Transition Initiatives (TI), a new program that was created under the
FY2006 foreign assistance request to promote stabilization, reform, and post-conflict
reconstruction in fragile states. GHAI assistance includes the provision of antiretroviral
therapy, safe injections, safe blood supplies, and abstinence/faithfulness education. Figure
1 will likely show continued sharp growth in aid to Africa in 2005 once food aid being
provided from emergency reserves to Niger and other countries is attributed to Africa in
USAID data. (Table 3 provides detail on these and other programs that channel aid to
Africa.)
Figure 2. U.S. Non-Food Economic Aid to Africa
Millions of Current $, Fiscal Years
2500
2000
1500
1000
500
0
1996
1998
2000
2002
2004
2006R
Global Aids Initiative
DA, Child Survival, ESF, TI
DFA and Child Survival assistance. Falling ESF levels threatened the overall
scale of the sub-Saharan aid program after 1985, and this threat led to the creation of the
Development Fund for Africa (DFA), which specifically earmarked a minimum level of the
worldwide Development Assistance (DA) program for the region. Obligations for sub-
Saharan Africa projects under the DFA reached $846 million in FY1992, but dropped well
below $800 million in subsequent years despite efforts by some Members to increase the
DFA appropriation to $1 billion or more. The DFA was last earmarked by Congress in the
FY1995 appropriations, when $802 million was appropriated, and DA for Africa has since
been provided out of the worldwide Development Assistance appropriation.
For FY1996, Congress began to appropriate another type of assistance: the Child
Survival and Disease Programs Fund, renamed the Child Survival and Health Programs Fund
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(CSH) in FY2002, which has channeled substantial amounts of aid to Africa. In recent years,
annual USAID presentations to Congress on the budget request for aid to Africa have varied
both with respect to using the term DFA and with respect to including CSH aid in an overall
DA amount or in breaking out CSH assistance and DA separately. This has left the
terminology governing aid to Africa somewhat confused. However, appropriations bills now
treat CSH and DA as separate programs, and that practice is followed in this issue brief.
Meanwhile, the term “DFA” is rarely used today, although the Development Fund for Africa
is mentioned in the Foreign Affairs Authorization (S. 600) reported in the Senate (S.Rept.
109-35) on March 10, 2005 (see below, Legislation).
Economic and Security Assistance
Table 1 ranks African countries that would receive more than $5 million under the
FY2006 request through a wide range of U.S. economic and security assistance programs,
including the Global HIV/AIDS initiative but not food aid and disaster assistance.
Madagascar and Cape Verde have agreed to $110 million compacts with the Millennium
Challenge Corporation (see below), but information on the annual allocation of this aid is not
yet available and it is not included here.
The high aid level for Uganda reflects not only U.S. backing for its struggle against
AIDS, but also a view among policymakers that Uganda’s “[p]rosperity and stability are
essential to growth and stability in the east and central African region” generally (USAID
Congressional Presentation, FY2004). Kenya is going through a democratic transition
following multi-party elections in December 2002; and with Ethiopia, Nigeria, South Africa,
and Djibouti, it is regarded as a strategic partner in the war on terrorism. Sudan’s relatively
high rank reflects U.S. assistance directed to southern Sudan and is focused on conflict
prevention, food security, and primary health care. (Aid for Darfur is being provided
principally through disaster relief, refugee assistance, and Contributions for International
Peacekeeping. For further information, see CRS Issue Brief IB98043, Sudan: Humanitarian
Crisis, Peace Talks, Terrorism, and U.S. Policy, by Ted Dagne.) Policymakers have wanted
to show continuing support for South Africa’s post-apartheid transition, which began in 1994
with the country’s first universal suffrage elections. Moreover, South Africa has the world’s
largest population of HIV/AIDS victims, with an estimated 5 million infected. Aid for
Zimbabwe focuses on the struggle against HIV/AIDS, expanding opportunities for
participation in political decision making, and expanding economic opportunities for the
disadvantaged. No assistance is channeled through the Zimbabwe government.
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Table 1. Leading U.S. Assistance Recipients in Africa
($ millions)
FY2007
FY2006
FY2005
FY2004
Country
Request
Request
Estimate
Actual
Uganda*
232.6
220.4
148.6
112.8
Kenya*
334.9
212.9
159.1
101.2
South Africa*
359.9
189.9
139.4
99.1
Nigeria*
320.2
175.7
130.1
80.2
Zambia*
189.6
160.0
113.4
82.1
Ethiopia*
283.8
145.0
114.1
74.3
Tanzania*
189.7
127.5
103.4
58.9
Sudan
205.8
112.4
200.9
170.7
Mozambique*
156.9
81.5
80.3
59.9
Liberia
89.9
89.8
44.1
203.0
Rwanda*
93.9
85.0
50.5
35.9
Namibia*
82.1
58.8
44.2
26.8
Botswana*
60.4
43.7
30.5
11.7
Mali
37.7
39.2
38.6
43.0
Dem. Rep. Congo
39.4
33.5
38.0
40.4
Ghana
37.9
33.4
40.3
41.5
Malawi
32.5
32.9
33.3
34.8
Senegal
33.1
30.0
29.9
34.1
Côte d’Ivoire*
47.1
30.0
20.9
7.5
Madagascar
22.0
22.8
22.8
23.3
Angola
29.8
20.7
21.5
23.4
Guinea
12.9
20.5
17.7
21.9
Benin
12.0
17.9
17.9
18.4
Zimbabwe
15.2
14.3
13.8
15.5
Djibouti
8.3
9.3
6.3
7.1
Sierra Leone
6.9
9.0
11.3
9.2
Eritrea
.845
6.9
10.1
8.2
Burundi
9.6
6.1
6.4
6.4
Chad
5.9
5.2
3.0
3.1
Source: USAID. Amounts exclude food aid.
Note: All amounts include economic and security assistance, as well as assistance under the Global
AIDS Initiative.
* Global AIDS Initiative “focus” country. Estimated allocations included.
Food Aid. Emergency food aid to Africa fluctuates in response to the continent’s
needs, and the amount provided by the end of a fiscal year often exceeds the initial request.
The additional amount is taken from a food aid reserve fund. Emergency food aid is
provided under Title II of the P.L. 480 program (named for P.L. 83-480, enacted in 1954),
which is implemented by USAID in cooperation with the Department of Agriculture. For
further information on food assistance programs, see CRS Issue Brief IB98006, Agricultural
Export and Food Aid Programs, by Charles E. Hanrahan.)
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Peace Corps. The Peace Corps expects to have more than 2,700 Peace Corps
Volunteers (PCVs) serving in 26 sub-Saharan countries by the end of FY2005, up from an
estimated 1,900 in 2002, because of the Administration’s Peace Corps expansion program.
(For further information, see CRS Report RS21168, The Peace Corps: Current Issues, by
Curt Tarnoff.) Under the Peace Corps Act (P.L. 87-293), volunteers are to help the poorest
people meet their basic needs, to promote a better understanding of the American people, and
to promote a better understanding of other peoples on the part of Americans.
Security Assistance. The security assistance program in Africa, which had declined
with the end of the Cold War, has expanded in recent years, primarily in response to
widening conflict and political instability in Africa. Economic Support Fund aid has been
used to support economic reform in Nigeria, a “safe skies” program to improve African air
traffic safety, human rights and democracy education, and other objectives. ESF aid is also
helping strategic partners in the war on terrorism through cooperation on border control,
freezing terrorist assets, implementation of the peace agreement in southern Sudan, and other
activities. In addition, the Defense Department conducts AIDS prevention education
programs, primarily with African militaries.
Table 2. Contributions for International Peacekeeping Activities
($ millions)
Operation
FY2006
FY2005
FY2004
(Request)
(Estimate)
(Actual)
War Crimes Tribunal - Rwanda (UNICTR)
13.7
16.4
16.3
Sierra Leone (UNAMSIL)
3.7
47.4
71.0
Democratic Republic of the Congo (MONUC)
202.3
249.1
30.1
U.N. Operations in Ethiopia/Eritrea (UNMEE)
32.8
50.4
49.5
Burundi Operation (ONUB)
89.9
94.1
41.6
U.N. Mission in Liberia (UNMIL)
159.2
134.3
290.3
Sudan/Darfur
250.0
250.0
U.N. Operation in Côte d’Ivoire (UNOCI)
71.9
112.7
82.0
Total
823.5
954.3
580.9
(Numbers may not add due to rounding.)
Through the Peacekeeping Operations (PKO) program, the United States supported the
Africa Crisis Response Initiative (ACRI), which trained small units of African armies for
possible peacekeeping duties, as well as for other regional peacekeeping initiatives. In
FY2004, ACRI was succeeded by the Africa Contingency Operations Training Assistance
(ACOTA), which focuses on training trainers and on programs tailored to individual country
needs. Foreign Military Financing (FMF) resumed in FY1999 and under the FY2005 request
under the FY2005 request would be used to strengthen counterterrorism capabilities in
Africa, bolster border security, and help Kenya protect itself against terrorist infiltration from
Somalia. International Military Education and Training (IMET) programs in Africa are
aimed at promoting professionalism and respect for democracy and human rights, while
enhancing capabilities for participation in peacekeeping operations. These programs
typically run well under $1 million per country.
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The United States contributes to United Nations peacekeeping operations in Africa and
elsewhere through a program entitled Contributions to International Peacekeeping Activities
(CIPA, Table 2). Funds for CIPA are appropriated in the legislation that funds the
Departments of Commerce, Justice, and State, rather than in the Foreign Operations
appropriation, which governs foreign assistance.
Regional Programs. Both DA and ESF funds are used to support USAID’s Africa
Regional Programs, which are designed to confront challenges that span the borders of
African countries. These include regional programs in health, conflict prevention,
democracy, education, and agriculture. The Initiative for Southern Africa supports efforts
to promote trade and investment through the Southern Africa Enterprise Development Fund
and other programs. The Trade for African Development and Enterprise (TRADE) initiative
aims at strengthening business and promoting policy and regulatory reform throughout the
sub-Saharan region. The Africa Trade and Investment Policy (ATRIP) program, which
provides technical assistance, training, and other aid to African countries implementing free-
market economic reforms, is part of this initiative. For FY2005, the Administration sought
$4 million in FMF for an African Coastal and Border Security program.
African Development Foundation
The African Development Foundation (ADF) has a unique mandate to make small
grants directly to African cooperatives, youth groups, and other self-help organizations.
These grants usually range from less than $20,000 to a maximum of $250,000, although
appropriations language permits a waiver of the $250,000 ceiling. In addition, the ADF
supports grassroots development research by African scholars and promotes the
dissemination of development information at the community level. By law, the ADF is
limited to 75 employees. Its seven-member Board of Directors must include five
private-sector representatives. ADF does not station U.S. employees in overseas posts, but
instead works through local-hires and periodic field visits. For FY2006, the ADF received
an appropriation of $23 million in the Foreign Operations Appropriations Act.
Refugee and Disaster Assistance
The United States responds to African humanitarian crises in part with Title II food aid,
discussed above, and in part through its refugee and disaster assistance programs. Most
refugee assistance comes from the Migration and Refugee Assistance (MRA) account and
goes to the United Nations High Commissioner for Refugees and international organizations,
as well as private and voluntary organizations assisting African refugees. In addition, the
Emergency Refugee and Migration Assistance (ERMA) account, created in 1962 to deal with
unexpected refugee situations, has been drawn upon for African emergencies several times
in recent years. USAID’s Office of Foreign Disaster Assistance (OFDA) also plays a major
role in responding to African crises. “Situation Reports” published by USAID’s Office of
Foreign Disaster Assistance monitor the U.S. response to African humanitarian crises
through food aid and other emergency assistance. To find these reports, visit
[http://www.usaid.gov/] and click on “Our Work” and “Humanitarian Assistance.”
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Multilateral Assistance
The United States provides aid to Africa indirectly through international financial
institutions (IFIs) and United Nations agencies. World Bank lending through its “soft loan”
affiliate, the International Development Association (IDA) is the largest single source of
development capital in Africa. IDA loans, which are considered a form of aid since they are
virtually interest-free and carry extended repayment periods, have focused on strengthening
public sector management, transportation, agriculture, and various social problems. IDA
has been particularly active in assisting efforts by the recipient countries to carry out free-
market economic reforms. In 2004, IDA devoted about 45% of its new loan commitments
to sub-Saharan Africa, so that about $408 million of the $907 million U.S. contribution to
IDA in that year can be said to have gone indirectly to the region. The African Development
Fund (AfDF) has been another major channel for indirect U.S. aid to Africa. The Fund, an
affiliate of the Africa-based African Development Bank (AfDB), makes loans on highly
concessional terms to the poorest African countries. The AfDB lends on roughly commercial
terms to creditworthy African borrowers, but at the same time, it holds 50% of the voting
power in the AfDF.
Total U.S. Assistance
Table 3 lists most components of U.S. assistance to sub-Saharan Africa and indicates
that under the FY2006 request, assistance would rise to $3.6 billion, not including food aid,
up from $3.5 billion in FY2005. Table 3 includes an additional $674.4 million in FY2005
aid for Africa announced by President Bush in a June 7, 2005, press conference with
Britain’s Prime minister Tony Blair. This additional food, disaster, and refugee assistance
will be drawn from general funds already appropriated by Congress, including funds in the
FY2005 Emergency Supplemental Appropriations (P.L. 109-13), signed into law on May 11,
2005. The components of the additional aid are $90 million in International Disaster and
Famine Assistance, $94.4 million in Migration and Refugee Assistance, $240 million in P.L.
480 Title II food aid, and $250 million in food aid from the Bill Emerson Humanitarian
Trust, administered by the Secretary of Agriculture.
FY2006 Request and Congressional Action. The Bush Administration’s
FY2006 assistance request for sub-Saharan Africa, released on February 7, 2005, would
continue the pattern of increasing aid for the region, largely due to the expansion of the State
Department’s Global HIV/AIDS initiative. Aid through this program would grow by more
than 50%, to $1.2 billion, as compared to FY2005, while aid under the Child Survival and
Development Assistance programs would decline. Development Assistance funds totaling
$95 million for Ethiopia and Sudan have been shifted to the new Transition Initiatives
program for fragile, post-conflict states. Liberia, where elections are scheduled for October,
would receive $75 million through the Economic Support Fund. The Administration
requested $3 million for the Millennium Challenge Corporation (MCC) worldwide, although
$5 billion in FY2006 funding had been anticipated under the original Millennium Challenge
Account program. (See below, “Issues.”)
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Table 3. Assistance Designated for Sub-Saharan Africa
($ millions)
FY2006
FY2005
FY2004
FY2003
FY2002
Program
Request
Estimate
Actual
Actual
Actual
Child Survival & Health Fund
325.9
356.8
477.3
541.1
424.4
Global HIV/AIDS Initiative
1,206.3
781.5
263.8
Development Assistance
428.5
547.4
466.7
490.7
454.0
Transition Initiatives
95.0
—
—
—
—
ESF
151.9
104.2
74.1
109.4
120.0
Peace Corps
68.7
75.7
62.2
63.3
53.7
African Dev. Foundation
18.9
18.8
18.6
18.7
16.5
Migration and Refugee Assistance
256.5
323.8
226.4
228.5
187.5
African Development Bank
5.6
4.1
5.1
5.1
5.1
African Development Fund
135.7
105.2
112.1
107.4
100.0
Liberia/Sudan in Other Appropriations
385.0
Millennium Challenge Account
—
—
—
—
—
Subtotal, Economic & Humanitarian
2,693.0
2,317.5
2,091.3
1,564.2
1,361.2
International Narcotics & Crime
4.2
10.5
6.9
6.7
7.5
Peacekeeping Operations
41.4
133.2
30.2
78.1
54.9
IMET
11.0
10.8
11.2
9.9
10.3
Foreign Military Financing
24.0
26.3
20.9
28.0
33.5
Contributions to Int’l Peacekeeping
823.5
954.3
580.9
366.7
513.0
Nonprolif., Anti-terrorism, Demining
30.4
31.5
25.8
19.7
12.1
DOD AIDS Education, Af. militaries
0.0
7.5
4.2
7.0
14.0
Subtotal, Military and Other
934.5
1,174.1
680.1
516.1
645.3
TOTAL
3,627.5
3,491.6
2,771.4
2,080.3
2,006.5
Food Aid
228.8
1,013.9
1,187.9
1,165.9
462.9
Total Including Food Aid
3,856.3
4,505.5
3,959.3
3,246.2
2,469.4
On November 14, 2005, President Bush signed the Foreign Operations Appropriations
bill (P.L. 109-102). As in previous years, appropriations for most Africa-specific programs
are not earmarked in the bill, but the bill provides more than requested worldwide for Child
Survival and Health programs as well as Development Assistance, suggesting that the
Administration will have ample resources for meeting its proposals for Africa through these
programs. By contrast, the Economic Support Fund and the Millennium Challenge Account
receive less than requested worldwide. The bill provides $2 million less than requested for
the African Development Bank, meets the Administration’s requests for the African
Development Fund, and provides $23 million for the African Development Foundation, as
compared to an Administration request of $18.8 million.
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Table 4. Assistance Requested and Appropriated Worldwide
($ millions)
Program
FY2006 Request
FY2006 Appropriated
Child Survival & Health Fund
1,251.5
1,585.0
Global HIV/AIDS Initiative
1,970.0
1,995.0
Development Assistance
1,103.2
1,524.0
Transition Initiatives
95.0
40.0
ESF
3,036.4
2,634.0
Peace Corps
345.0
322.0
African Dev. Foundation
18.9
23.0
Migration and Refugee Assistance
892.8
791.0
African Development Bank
5.6
3.6
African Development Fund
135.7
135.7
Millennium Challenge Account
3,000.0
1,770.0
International Narcotics & Crime
523.9
477.2
Peacekeeping Operations
195.8
175.0
IMET
86.7
86.7
Foreign Military Financing
4,588.6
4,500.0
Contributions to Int’l Peacekeeping
1,035.5
1,035.5
Nonprolif., Anti-terrorism, Demining
440.1
410.1
Food Aid
885.0
1,150.0
Comparison with Other Donors
According to figures compiled by the Organization for Economic Cooperation and
Development (OECD), the United States was the largest bilateral donor of net bilateral
Official Development Assistance (ODA) to sub-Saharan Africa, in 2003, the most recent year
for which data are available, followed by France, Germany, and the United Kingdom.
However, the European countries and the European Communities together provided
considerably more to Africa than the United States. ODA includes a wide-range of non-
military aid disbursements. Many countries continued to give a larger proportion of their
assistance to sub-Saharan Africa than the United States. The region received about 32% of
U.S. ODA in 2002, according to the OECD, in contrast to 57% of French aid , 37% of British
aid, and 47% of German aid. Japan was the eighth ranking donor to Africa in 2003,
according to the OECD, providing about 8% of its aid to the region. On May 24, 2005,
European Union foreign and development ministers pledged that their governments would
reach the United Nations target of providing 0.7% of GDP in foreign aid in 10 years. As an
interim target, the Europeans would provide $25 billion in added annual aid by 2010. Some
cautioned, however, that these pledges could be affected by budget difficulties in some
European countries. France’s President Jacques Chirac announced on August 29, 2005, that
France would propose a tax on air travel to fund additional aid to Africa. The proposal was
made at the United Nations World Summit, which brought more than 170 heads of state and
government to U.N. headquarters in New York, September 14-16. Some heads of state
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spoke favorably about the proposal, but some developing country delegates expressed
concern that the new proposal was offered to draw attention away from the point that official
development aid (ODA) was allegedly too low to achieve the Millennium Development
Goals (MGD).
Recent Trends in U.S. Aid
U.S. officials continue to stress a strong commitment to assisting Africa. In a June 26,
2003, speech to a meeting of the Corporate Council on Africa, President Bush spoke of a
“partnership” with Africa, including U.S. help in establishing peace and security, making
advances in health and literacy, and developing free economies through aid and trade.
During the speech, part of the run-up to his July 7-12, 2003, trip to Africa, the President
announced $100 million in anti-terrorism assistance over 15 months to countries in East
Africa and $200 million over five years both to train teachers in Africa and to provide
textbooks through Historically Black Colleges and Universities. Secretary of State Powell,
addressing the Corporate Council on June 27, 2003, said that Africa’s “boundless potential”
could not be realized unless the continent moved against corruption.
USAID officials have testified that the United States has had a number of successes in
promoting sustainable development, democracy, and conflict resolution. They point to
Ghana, Uganda, Zambia, and Mali, as examples of successful political and economic
transitions, while Mozambique and South Africa are cited as models of transition from
conflict to peace as well. Skeptics of USAID’s programs, noting, for example, widespread
reports of corruption and undemocratic practices in Zambia and a slow rate of economic
growth in post-apartheid South Africa, question whether economic and political gains are
genuine or will endure. With respect to conflict resolution, some note that two leading
recipients, Uganda and Ethiopia, have recently been involved in armed conflicts, as have
some lesser recipients, including Rwanda, Zimbabwe, Eritrea, and Angola. Supporters of
the program respond by acknowledging that problems inevitably arise within and among
countries that face serious challenges with deep historical roots, but insist that overall trends
in Africa are positive and that long-term development efforts cannot be interrupted every
time difficulties occur.
USAID also maintains that the DFA and CSD assistance have helped African countries
achieve increases in child immunization and the use of oral rehydration therapy, shift their
health policies towards an active emphasis on AIDS prevention, increase the prevalence of
contraceptive use, and boost primary school enrollments. In agriculture, USAID asserts that
DA has helped liberalize agricultural markets, increase smallholder production; and facilitate
the development of new seed varieties. DA has also been used to assist governments
undertaking macro-economic reforms, including reductions in the size of government
bureaucracies and the privatization of government enterprises.
The Clinton Administration launched several special development initiatives in Africa.
The Greater Horn of Africa Initiative (GHAI), aims at easing the perennial food insecurity
in a region extending from Eritrea and Ethiopia to Tanzania by promoting collaboration and
consultation on food security strategies. The Initiative for Southern Africa (ISA) reflects
USAID’s recognition of the region’s economic potential and its desire to reinforce South
Africa’s democratic transition as a model for the rest of the continent. The initiative includes
a Democracy Fund, to make grants in the region in support of democracy, and a Southern
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Africa Enterprise Development Fund (SAEDF), to promote indigenous business
development and ownership.
The Leland Initiative aims at connecting 20 sub-Saharan countries to the Internet. The
initiative is named for the late Representative Mickey Leland, founder of the House Select
Committee on Hunger, who died in a 1989 plane crash while on his way to investigate
conditions in an Ethiopian refugee camp. Technicians from several U.S. government
agencies are working to implement the project, which will make Internet access available to
“all sectors of the African development community,” including NGOs, government agencies,
“private developers,” and individuals. (USAID press release, June 6, 1996.)
South Africa has been a special focus for USAID for several years. After the
installation of a democratically-elected government in May 1994, President Clinton pledged
the United States to $600 million in aid to South Africa over three years. The United States
guaranteed loans for housing, electrification, and small business development. Resources
have also been used to support the growth of small, medium, and micro-enterprises
(SMMEs) in South Africa; strengthen the South African justice system; improve education;
promote primary health care; and foster majority involvement in business.
The Africa: Seeds of Hope initiative grows out of congressional action in 1998, when
the Africa: Seeds of Hope Act (P.L. 105-385) was passed. The proposal was strongly
supported by Bread for the World, which describes itself as “a nationwide Christian citizens
movement seeking justice for the world’s hungry....” The act supports USAID’s Africa Food
Security Initiative by encouraging a refocus on agriculture and rural development. A
presidential report on implementation of the act argued that even more could be done in
agriculture if more funds were available.
President Bush, speaking at the Leon Sullivan Summit in Washington on June 20, 2002,
announced a new Africa Education Initiative. The President promised to double U.S. aid for
education in the region, bringing total spending to $200 million over the next five years. The
President also announced that he would visit Africa in 2003. As noted above, Africa will
also benefit if two other Bush initiatives win approval: the Global AIDS Initiative,
announced by the President in his State of the Union Message on January 28, 2003, and the
Millennium Challenge Account (see below).
Counterterrorism is the focus of other recent assistance initiatives. The Pan-Sahel
Initiative (PSI) is a joint Defense and State Department program that provides training and
equipment to the armed forces of Mauritania, Chad, Niger, and Mali. According to
Administration officials, the initiative has helped these countries respond to the threat posed
by Algeria-based Islamist guerrillas. The East African Counter-Terrorism Initiative (EACTI)
is training law-enforcement officers in Kenya and other countries.
Sustainable Development Initiatives. On August 23, 2002, the Department of
State released information on four initiatives or “signature partnerships,” which were
formally announced at the World Summit on Sustainable Development (WSSD) in
Johannesburg on August 29. These initiatives were the Water for the Poor Initiative, the
Initiative to End Hunger in Africa, the Congo Basin Forest Partnership, and the Clean Energy
Initiative. The initiatives, which drew praise from the United Nations representative to the
conference, stress “public-private partnerships,” through which U.S. assistance funds would
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be used to leverage investments in Africa by other governments, international organizations,
NGOs, and the private sector. For example, under the West Africa Water Initiative, part of
the Water for the Poor Initiative, USAID would provide $4.4 million as a partner in a $41
million, five-year effort to supply potable water and sanitation to rural villages in Ghana,
Mali, and Niger. Other partners would include the Conrad N. Hilton Foundation and
UNICEF. Skeptics of the initiatives maintain that the amounts of U.S. assistance being
offered are modest and seem to come largely from funds that have already been budgeted or
promised. Some also complain that the funds might be used to promote private business
interests. (New York Times, August 30, 2002.) The initiative to end hunger aims at
harnessing science and technology to boost agricultural production and at strengthening
markets to assist small farmers.
In addition to the signature partnerships, USAID released documents at WSSD
reviewing U.S. actions intended to prevent famine in southern Africa and fight infectious
disease. Another document reported on a $15 million investment guarantee by the U.S.
Overseas Private Investment Corporation (OPIC) to support the construction of low-income
housing and associated infrastructure in South Africa. The guarantee would help a U.S. for-
profit company support a bank making construction loans to private developers and
contractors. (OPIC press release, August 29, 2002.)
Issues
Millennium Challenge Account. In a March 14, 2002 speech, President Bush
outlined a proposed Millennium Challenge Account (MCA), which would increase foreign
aid worldwide by $5 billion per year over three years, starting in FY2004. The account
would provide additional aid to countries whose governments promote good governance,
invest in people through education and health care, and promote open markets. Although the
promise of increased aid won praise from many observers, some worried that most countries
in Africa will not be able to meet the Fund’s eligibility criteria. In May 2004, the
Millennium Challenge Corporation announced that 8 African countries had been determined
to be eligible to receive grants: Benin, Cape Verde, Ghana, Lesotho, Madagascar, Mali,
Mozambique, and Senegal, and agreements have been reached with Madagascar and Cape
Verde for MCA programs valued at $110 million each. Nonetheless, the program has been
criticized for what some see as a slow disbursal of funds, and as noted above, overall funding
for the MCA is turning out to be less than President Bush initially proposed. For further
information, see CRS Report RL32427, The Millennium Challenge Account: Implementation
of a New U.S. Foreign Aid Initiative, by Larry Nowels; and U.S. Government Accountability
Office Report GAO-05-625T, Millennium Challenge Corporation: Progress Made on Key
Challenges in First Year of Operations (April 27, 2005).
AIDS. The level of funding for HIV/AIDS programs in Africa remains a major focus
of interest. This issue is covered in CRS Issue Brief IB10050, AIDS in Africa, by Nicolas
Cook. See also CRS Report RS21181, HIV/AIDS International Programs: Appropriations,
FY2003-FY2006, by Tiaji Salaam-Blyther.
NEPAD and the G8. In 2001, African leaders approved the New Partnership for
Africa’s Development (NEPAD), championed by the presidents of South Africa, Nigeria,
Senegal, and others. Under the plan, African countries are to intensify efforts to eradicate
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poverty, strengthen democracy, deal with corruption, and resolve conflicts in exchange for
debt forgiveness from the developed countries as well as increased aid, trade, and
investment. NEPAD includes a “peer review mechanism” intended to assure that African
governments are held accountable for their performance with respect to governance and
economic policy.
At the June 2002 G-8 summit at Kananaskis, Canada, attended by key African leaders,
donors launched an Africa Action Plan to be implemented as NEPAD reforms move forward.
Whether the G8 donors and Africa are living up to their Kananaskis promises is
controversial. Britain will host the July 2005 G8 summit in Scotland, and Prime Minister
Tony Blair intends to focus the meeting on Africa once again. Sweeping proposals for 100%
debt relief, sharply increased aid, and the removal of trade barriers are expected to be
discussed. For more information, see CRS Report RL32796, Africa, the G8, and the Blair
Initiative, by Raymond W. Copson.
Other. The overall level of U.S. assistance to Africa could again emerge as an issue
in the foreign assistance debate, particularly in view of pressures from Britain and others for
a dramatic expansion of aid to Africa. Some observers express a number of frustrations with
aspects of the foreign assistance program, but these have had little impact on the
congressional aid debate to date. Some argue, for example, that reductions in operating
expenses have forced staff and mission cutbacks that complicate USAID’s ability to
implement the Africa DA program. Critics of this view maintain that USAID must deal with
budget constraints that affect other parts of the government as well. Some also maintain that
the Child Survival earmark has absorbed funds that might otherwise have been used to
promote long-term development, which in turn would promote better health among both
children and adults. Others argue, however, that the Child Survival program has channeled
funds to a critical, immediate humanitarian need, and that the American people strongly
support assistance that benefits impoverished children, funds HIV/AIDS programs, and
promotes vaccine research, among other objectives.
Meanwhile, a debate continues among scholars, analysts, and policymakers about
whether foreign aid is an effective means of spurring growth and poverty reduction in Africa;
what types of aid are most effective; and what role other measures, such as debt reduction
and the removal of trade barriers, might play. For a discussion of these issues, see CRS
Report RL32489, Africa: Development Issues and Policy Options, by Raymond W. Copson.
LEGISLATION
P.L. 109-102
Foreign Operations Appropriations, FY2006. For amounts, see above, FY2006 Request
and Congressional Action. The legislation earmarks not less than $50 million for drinking
water supply projects in Africa; permits IMET for the Democratic Republic of Congo and
Nigeria only through regular notification procedures; prohibits debt restructuring assistance
for Sudan unless the Secretary of the Treasury certifies that a democratically elected
government has taken office; prohibits FMF for Sudan; permits aid for Liberia, Sudan or
Zimbabwe only through regular notification procedures; earmarks up to $70 million for aid
to Sudan, but apart from humanitarian assistance, prohibits aid to the Sudanese government
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unless the Secretary of State certifies, among other requirements, that the government is
taking significant steps to disarm government-supported militia in Darfur; earmarks not less
than $17.5 million for the Congo Basin Forest Partnership, including not less than $2.5
million for the protection of great apes; permits assistance to countries where individuals
sought by the Sierra Leone and Rwanda war crimes tribunals are credibly alleged to be living
if the Secretary of State certifies that the governments of such countries are cooperating with
the tribunal, subject to a presidential waiver; requires the United States to oppose loans to
Zimbabwe through international financial institutions, except for humanitarian purposes,
unless the Secretary of State certifies that the rule of law has been restored. Signed by
President Bush on November 14, 2005.
H.R. 2601 (Christopher Smith)
Foreign Relations Authorization, FY2006 and FY2007. Authorizes $1 million for the
provision of four coastal patrol boats to Mozambique; authorizes $5 million in FY2006 and
$7.5 million in FY2007 for establishing obstetric fistula centers; encourages the Overseas
Private Investment Corporation (OPIC) to support investments in financial institutions in
sub-Saharan Africa; authorizes $12 million in each fiscal year to support the restoration of
democratic legitimacy in Zimbabwe; authorizes $4 million for a demonstration insurance
project for famine relief in Ethiopia; requires a report on expanding the Pan-Sahel Initiative
to become a robust counterterrorism program for the entire Saharan region; states sense of
Congress that the chocolate industry, NGOs, and the governments of Ghana and the Côte
d’Ivoire should continue their efforts to monitor child labor in the cocoa industry; states the
sense of Congress that the United States should assist the International Criminal Court in
bringing to justice those accused of genocide, war crimes, or crimes against humanity in
Darfur. Passed the House (351-78) July 20, 2005; received in the Senate July 22.
S. 600 (Lugar)
Foreign Affairs Authorization, FY2006 and FY2007. Authorizes $1.1 billion in
FY2006 and such sums as may be necessary in FY2007 for Development Assistance
worldwide, including the Development Fund for Africa; authorizes $18.85 million for the
African Development Foundation in FY2006 and such sums as may be necessary for
FY2007; affirms U.S. support for the Congo Basin Forest Partnership; authorizes funds to
strengthen judicial capacity in Africa and requires a report from the President on this effort
within six months of passage; authorizes $114.4 million in FY2006 for the Global Peace
Operations (GPOI) program, with an initial emphasis on Africa; authorizes assistance to
expand access to clean water; authorizes $325 million in FY2006 for transition initiatives,
including those requested for Sudan and Ethiopia. Reported in the Senate (S.Rept. 109-35)
March 10, 2005.
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Appendix: Selected Africa Assistance Acronyms
ACOTA
Africa Contingency Operations Training Assistance, successor to ACRI.
ACRI
Africa Crisis Response Initiative, which trained military units for peacekeeping.
ADF
African Development Foundation, U.S.-funded public corporation.
AfDB
African Development Bank, an Africa-based IFI.
AfDF
African Development Fund, affiliate of the African Development Bank.
ATRIP
Africa Trade and Investment Program, a USAID initiative.
CIPA
Contributions to International Peacekeeping Activities
CSH
Child Survival and Health Programs Fund.
DA
Development Assistance.
DFA
Development Fund for Africa, part of DA, not earmarked in recent years.
ERMA
Emergency Refugee and Migration Assistance, administered by State Department.
ESF
Economic Support Fund, a State Department program for promoting U.S. interests.
FMF
Foreign Military Financing, funds equipment purchases.
GHAI
State Department’s Global AIDS Initiative, part of PEPFAR.
IBRD
International Bank for Reconstruction and Development, The World Bank.
IDA
International Development Association, concessional loan affiliate of IBRD.
IFIs
International financial institutions.
IGAD
Inter-governmental Authority on Development, a Djibouti-based organization of
Horn of Africa states.
IMET
International Military Education and Training, a form of military assistance.
MRA
Migration and Refugee Assistance, a State Department program.
NEPAD
New Partnership for Africa’s Development, an African initiative.
NGOs
Non-governmental organizations.
OECD
Organization for Economic Cooperation and Development, an organization of
developed countries.
ODA
Official Development Assistance, the OECD’s concept of DA.
OFDA
Office of Foreign Disaster Assistance, a part of USAID.
PCVs
Peace Corps Volunteers
PEPFAR President’s Emergency Plan for AIDS Relief, a Bush Administration initiative.
PKO
Peacekeeping Operations account authorized by Part II, Chapter 6 of the Foreign
Assistance Act.
PVOs
Private and voluntary organizations
SAEDF
Southern Africa Enterprise Development Fund, a USAID program.
SMMEs
Small, medium, and micro-enterprises.
UNECA
United Nations Economic Commission for Africa, headquartered in Addis Ababa,
Ethiopia.
UNDP
United Nations Development Program
USAID
U.S. Agency for International Development
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