President John Dramani Mahama has spoken to the abrupt withdrawal of $154 million in annual development assistance, under United States current administration and how it has forced Ghana to aggressively restructure its domestic health financing.

Addressing an international audience of diplomats, policymakers, and academics on June 1, 2026, under the theme “Navigating a Changing Global Order: Ghana’s Strategic Priorities,” President Mahama used the funding crisis to illustrate how African nations must adapt to an increasingly unpredictable multipolar world.

The $154 million annual cut by USAID severely impacted critical sectors, with approximately $75 million previously earmarked for essential healthcare infrastructure.

"It was abrupt; it happened out of the blue," President Mahama revealed.

USAID cut costs Ghana $78 million in health funding - President Mahama

“We had factored our cooperation with USAID into our budget over the years, and it went to quite essential things, especially within healthcare. It included critical HIV testing, the supply of antiretrovirals, the fight against malaria, and support to several research institutions," he added.

To insulate the population from a collapse in public health delivery, President Mahama explained that his administration took immediate steps to bypass the previous government’s financial restrictions.

By repealing the controversial "capping and alignment law" which artificially choked statutory funds and diverted excess revenue into the central Consolidated Fund the government successfully unlocked the National Health Insurance Fund (NHIF).

"One of the first things we did was to uncap that fund," Mahama noted.

"You wouldn't believe that it freed up more than three billion Cedis; equivalent to almost $300 million, going back into the health insurance fund. We asked the health insurance to make up for the shortfall in USAID funding, which they were able to do," he stressed.

While Ghana successfully stabilised its healthcare deficit through this internal restructuring, President Mahama warned that smaller African nations like the Gambia where USAID abruptly terminated school feeding programs meant to prevent malnutrition are struggling significantly under the new funding realities.

Compounding the aid crisis is Africa's sovereign debt trap.

President Mahama noted that countries in severe debt distress, spending 40% to 50% of total revenue purely on debt servicing, have virtually nothing left to invest in human capital.

In response, Mahama called on the continent to rally behind the "Accra Resolution," a strategic framework established during a recent summit in the capital to push African nations toward self-reliance.

"Increasing humanitarian assistance and overseas development assistance is going to continue to dwindle," Mahama stated.

"We must take our destinies into our own hands. We must cut waste, govern better, reduce corruption, and create extra resources to be able to invest in what is important to our people," he stressed.

VPO