MARKET STRUCTURE · AFRICA
UK cuts bilateral aid to African countries by 56%
Change
The UK government reduced bilateral aid to African countries by 56%, cutting almost £900m of funding by the 2028–29 fiscal year.
Why it matters
UK bilateral aid to African countries is reduced by 56%, removing almost £900m by the 2028–29 fiscal year. Bilateral overseas development aid falls from £818m in 2026 to £677m by 2029, shrinking annual allocations for country-level programs through 2029. More than £6bn in aid cuts are being reallocated to increase defence spending, while £240m a year is ringfenced until 2029. The package also includes loan guarantees for Ukraine and maintains current allocations for Palestine and Lebanon, with Lebanon's funding tied to reducing drivers of irregular migration.
Implications
- · Grant funding for health and education programs (schools, clinics) is reduced, constraining service delivery in affected countries.
- · Smaller annual bilateral allocations through 2029 compress program budgets and project pipelines for country-level development work.
- · Reallocation of aid budgets toward defence spending reduces available grant capital for development projects.
Who is affected
- · UK aid programme managers and budget officials
- · NGO and service-delivery operators for health and education programs
- · Recipient government programme implementers and ministries
What to watch
- · Funding levels for the 2028–29 fiscal year
- · Ringfenced £240m annual allocation through 2029
Source
Topics
World & Politics International Affairs Development Health & Medicine Public Health