The administration of US President Donald Trump is reportedly planning significant cuts to a key US agency that invests billions in infrastructure projects across Africa, raising concerns about a potential shift in the balance of influence with China.
According to a memo, the contents of which were shared with AFP, the Department of Government Efficiency, led by billionaire Elon Musk, is set to impose a “significant reduction” in programmes and staff at the Millennium Challenge Corporation (MCC).
The MCC, established in 2004 under former President George W. Bush, has enjoyed bipartisan support and focuses on providing US investment to developing countries that meet specific criteria regarding democracy, economic openness, and good governance. To date, the agency has invested $17 billion in various African projects.
Recent MCC initiatives include a half-billion-dollar agreement with Zambia to improve roads, irrigation, and electricity infrastructure, and a $600 million project in Senegal, co-funded by the Senegalese government, aimed at expanding electricity access in rural areas.
The leaked memo indicates that the review of the MCC is ongoing, and it remains unclear whether the US will honour its existing contractual commitments.
The potential cuts to the MCC come at a time when infrastructure development is a key area of competition between the US and China. China, which the US views as its primary strategic rival, has been heavily investing in infrastructure projects across Africa. In September, Chinese President Xi Jinping pledged a further $51 billion in investment to the continent over the next three years.
The previous US administration, under President Joe Biden, acknowledged that it could not match China’s state-led spending but argued for a more sustainable development model that prioritised good governance.
President Trump has previously expressed limited interest in sub-Saharan Africa and has been critical of development aid that does not directly benefit the US. Since taking office in January, his administration has also significantly reduced funding for the US Agency for International Development (USAID).
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