$51m USADF funding cut to African startups reignites calls for self-reliance
- USADF announced a $51 million funding cut impacting SMEs and startups in sub-Saharan Africa.
- Kenya and Nigeria are the largest beneficiaries affected by these funding cuts.
- A WhatsApp marketing chatbot for Kenyan small businesses and a wellness incubator in Nigeria were among the hardest-hit initiatives.
The funding cuts by USADF represent a significant challenge for African startups, revealing their overdependence on foreign aid. This situation calls for urgent discussions on how to foster self-reliance and develop sustainable funding mechanisms that can support local entrepreneurs without external dependency. It is crucial for stakeholders to collaborate in creating a more resilient ecosystem that can withstand such shocks in the future.
