Decreased USAID Funding Threatens Vital Health and Climate Initiatives in Africa

The reduction in funding for the US Agency for International Development (USAID) by the Trump administration, resulting in the cancellation of 80% of its programs, marks a significant setback for clean cookstove initiatives in Africa. This situation compels many Africans to continue relying on wood or charcoal for cooking, worsening air pollution, deforestation, and greenhouse gas emissions throughout the continent.

Clean cookstoves, which employ electricity, gas, or minimal biomass, help alleviate harmful effects by facilitating a shift to cleaner cooking methods for households. For years, advocates for health and environmental standards have championed clean cooking as a cost-effective approach. However, the cessation of US financial support has placed numerous projects in jeopardy.

“Funding is dwindling, and the repercussions are clear,” stated Mattias Ohlson, CEO of Emerging Cooking Solutions in Zambia. “These initiatives can be the deciding factor between a company’s success or failure.”

About one-third of the global population still cooks with open fires or basic stoves, utilizing charcoal, coal, firewood, agricultural residues, or animal dung. According to the International Energy Agency (IEA), this air pollution causes 3.7 million premature deaths annually, with women and children facing the greatest risks for respiratory issues and heart diseases. This practice also accounts for approximately 2% of global emissions, as noted by the Stockholm Environment Institute.

While clean cooking initiatives have thrived in Asia and Latin America, Africa has failed to keep pace with its population growth. Currently, 1 billion Africans rely on highly polluting fuels for their cooking needs. The IEA estimates that an annual investment of $4 billion is crucial to achieve universal access to clean cooking by 2030.

For small African enterprises providing clean cooking fuels and appliances, USAID grants have often been a vital initial funding source to expand production and subsequently attract further financing from other development organizations and the private sector. Without these funds, entrepreneurs find themselves in a challenging position.

A representative from the State Department indicated that clean cooking initiatives do not align with the foreign assistance criteria defined by US Secretary of State Marco Rubio, which prioritize bolstering US interests. The department plans to continually adjust its program allocations, the spokesperson mentioned.

Reportedly, USAID officials have stopped responding to emails from their work accounts since March, according to grantees involved in this article, following a tumultuous six-week review of all projects overseen by what was the world’s largest aid organization.

“We were ordered to abruptly cease our activities,” Ohlson shared. “It came as quite a shock.”

The significant cuts to US foreign aid implemented by President Donald Trump and his efficiency advisor Elon Musk sparked numerous lawsuits and public protests against the cancellation of programs focused on HIV/AIDS, malaria, tuberculosis, maternal health, and child malnutrition. Although the effect on clean cooking may not result in immediate fatalities, industry leaders assert that the delayed progress will limit long-term benefits.

Ohlson’s Emerging Cooking Solutions operates a project utilizing waste biomass pellets for cooking, called Alternatives to Charcoal, a $25 million initiative managed by Tetra Tech Inc. and financed by USAID. Despite nearing completion and substantial expenditures, some funding remains frozen, according to Ohlson. If finalized, this initiative could decrease charcoal usage in Zambia by 25% and lower deforestation linked to charcoal production by 6.7%. Tetra Tech did not respond to a request for comments.

BioLite, a provider of solar and clean cooking solutions active in 20 African countries, suffered a major setback following the withdrawal of USAID funding. The Nairobi-based company had secured $1.5 million to distribute nearly half a million clean stoves over three years.

“We have struggled to find replacement funding, leading us to scale back our investment plans in markets where we aimed to grow,” stated Ethan Kay, BioLite’s managing director for emerging markets. “We will move forward, but at a more cautious pace.”

Securing investment from the private sector remains a daunting task across the continent.

Some companies are turning to carbon markets for funding following the establishment of global carbon market rules at the COP29 climate summit held in Azerbaijan last November. This accord outlines how nations should trade carbon credits and lays the foundation for bilateral transactions, covering clean cooking as well as traditional initiatives like tree planting.

BioLite has made progress in attracting funds to cover the initial costs necessary to qualify its products for the carbon market, which can help subsidize the prices of cookstoves, making them more affordable for consumers, Kay noted. However, the company lacks the substantial funding that USAID would have provided.

Numerous carbon offset programs traded in voluntary markets have faced criticism for being ineffective or overstating their climate benefits, and clean cooking credits are no exception. Last March, the non-profit Integrity Council for the Voluntary Carbon Market found that four distinct methodologies used to assess the effectiveness of clean cooking projects did not meet best practices for demonstrating their efficacy in reducing emissions. (The Integrity Council receives partial funding from Bloomberg Philanthropies, the philanthropic arm of Michael Bloomberg, founder and primary owner of Bloomberg LP.) A recent report commissioned by a South Korean non-profit evaluated various clean cooking initiatives and determined they were likely producing 18 times more credits than justified.

Obtaining funding through regulated carbon markets is a lengthy process, explained Madrin Maina, country director for Kenya at Sistema.bio. The company, which operates in Latin America, Africa, and Asia, provides farmers with a biodigester device that converts organic waste from animals into renewable biogas for powering farming machines, fertilizing fields, or cooking.

Like many clean cooking businesses, Sistema.bio partially launched with USAID funding. Although the company lacked USAID support at the time of the agency’s decline, it has noticed a tightening of alternative funding sources as some governments have reduced their funding commitments from approximately seven years to five years or less, Maina reported.

“With the withdrawal of USAID, governments are increasingly channeling their budgets into defense and other priorities,” she stated. “Unfortunately, the consequences will be far-reaching.”

Sistema.bio was already trading carbon credits on unregulated carbon markets and is now transitioning to carbon markets under United Nations regulations. However, for these markets to operate effectively, African nations must form bilateral agreements with developed nations for credit purchases. This process is slow, and the company is actively working to prompt the Kenyan government and others in the region to expedite it.

“It’s not an automatic transition,” Maina emphasized. “But it’s a essential shift, and we need to initiate it.”

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