Washington: The United States' decision to cut aid to Africa will have a 'variant impact' on the continent's economies, a Brazilian economist said Monday. The Atlantic Council's Africa Center recently held a discussion on the US and Africa's economic relations, featuring prerecorded remarks from former Senegalese President Macky Sall.

According to Anadolu Agency, the discussion was moderated by Otaviano Canuto, a Brazilian economist and senior fellow at the Policy Center for the New South (PCNS). It focused on the evolving economic ties between the US and Africa, highlighting challenges and opportunities. Canuto emphasized, "The decision to stop the USAID disbursements will have a variant impact on African economies."

Aubrey Hruby, a senior advisor and fellow at the Africa Center, pointed out the US's lack of credibility in promoting democracy or governance in African markets, especially as it faces its own governance challenges. Key issues discussed included the renewal of the African Growth and Opportunity Act (AGOA) in 2025, the decline in official development assistance from developed nations, and the significance of AGOA.

The conversation also covered the US investment strategy through the United States International Development Finance Corporation and EXIM Bank. The need for improved governance and anti-corruption efforts in African countries was highlighted as essential for enhancing investment and supporting sustainable growth.

The Trump administration, acting on recommendations from US tech billionaire Elon Musk, who leads the Department of Government Efficiency (DOGE), initiated the closure of USAID's operations both domestically and internationally. This decision has disrupted global aid programs, impacting non-governmental and media organizations dependent on the agency's funding.

USAID was established by President John F. Kennedy in 1961, and later became an independent agency through an act of Congress. Eliminating it would require congressional action.