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Africa urged to improve project management after $555m USAID cut

The Managing Director for Sub-Saharan Africa at the Project Management Institute, George Asamani, has urged African governments, including Nigeria, to strengthen project execution in response to a $555 million cut in U.S. contributions to the African Development Fund.

He noted that the funding cut—part of a wider decline in global aid—poses a serious threat to essential infrastructure projects across the continent, ranging from transportation and energy to water and sanitation systems.

ADF, the concessional lending arm of the African Development Bank, provides low-income African countries with grants and low-interest loans to support development efforts.

However, the Fund faces a major setback as the United States—one of its largest donors—has announced a $555 million funding cut as part of its 2025 budget realignments, citing domestic fiscal pressures.

This move adds to a growing trend of shrinking global aid. According to the Organisation for Economic Co-operation and Development, official development assistance to Africa fell by 2.7%, further tightening budgets already stretched by rising debt levels and the costs of post-pandemic recovery.

The combined effect of reduced aid and increasing financial pressure underscores the urgency for African governments to boost project efficiency and execution to sustain infrastructure development and social progress.

“Enhancing project delivery efficiency is vital for African countries to achieve sustainable development amidst shrinking aid, Asamani said in a note on Tuesday, according to The PUNCH.

Projects in many African nations frequently suffer from inefficiencies—such as cost overruns and delays—leading to investment losses of up to 10%, a challenge that could be significantly reduced through the adoption of professional project management practices.

“In Africa, where public debt levels are already placing pressure on national budgets, enhancing project execution is essential to ensure that infrastructure investments deliver their intended outcomes without increasing national debt,” he explained.

Institutional constraints, limited technical capacity, and high staff turnover remain significant barriers to effective project delivery in Nigeria’s public sector.

Addressing these challenges demands coordinated reforms, targeted capacity-building investments, and a sustained commitment to professionalisation and good governance.

He emphasized the need for continuous investment in skills development and the strategic placement of qualified project professionals within government ministries.

He noted that such efforts are critical to strengthening delivery capability, enhancing transparency, and ensuring better project outcomes across the public sector.

Asamani emphasized that improved project execution fosters public trust, enhances investor confidence, and generates employment—critical drivers of growth and resilience amid Africa’s expanding youth population and rising job demands.

He stressed that Africa must regard project management capability as a strategic economic asset.

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