Established in 1961 by Democratic President John F. Kennedy, the U.S. Agency for International Development (USAID) mandate was to support less fortunate nations’ efforts to improve education, health, infrastructure, government reform and transparency, and micro enterprises.

“The generosity and compassion of the American people have … saved lives, built peace, and improved the state of the world,” UN Secretary-General António Guterres said in February. “They have contributed to the stability and prosperity that Americans depend on.”  

However, immediately after Republican Donald Trump was elected president, he signed an executive order saying, “The United States foreign aid industry and bureaucracy are not aligned with American interests and in many cases antithetical to American values. They serve to destabilize world peace by promoting ideas in foreign countries that are directly inverse to harmonious and stable relations internal to and among countries.”

In late February, the USAID Office of Inspector General said, “All USAID hired personnel, with the exception of designated personnel responsible for mission-critical functions, core leadership and specially designated programs, will be placed on administrative leave.”

The closure has left USAID Egypt’s projects in education, agriculture, economic growth, tourism, health and social prosperity in limbo. While that opens the door for local private sector enterprises to fill that gap, it won’t be easy. 

USAID in Egypt

Since USAID opened in Egypt in 1978, the country has received more than $30 billion in assistance. A breakdown by the U.S. Foreign Assistance Bureau shows Egypt is MENA’s fifth biggest recipient of USAID aid (out of 16 countries), averaging $240 million annually. It ranked ninth highest in its “income group” of 44 nations.

The Borgen Project, a U.S.-based NGO that worked with USAID, said education had been the “core of USAID’s commitment to Egypt’s future.” Before closing, the agency had 788 active education projects across all 26 governorates and was working with 10 private and public universities.

Those programs focused on engineering, computer science, and science (STEM), accounting for 74% of USAID’s university funding. Other noteworthy specializations included business, agriculture, and journalism. Standout initiatives were the Early Grade Learning Program (2013-2020) and Literate Village (2017-2021), which focused on improving education levels among state school students in rural areas.

To aid graduates in finding jobs, USAID had 30 career centers in 22 public universities before it closed. “These centers [offered] internships, training and other career development programs,” said the Borgen Project. The agency also organized three virtual career fairs to connect job-seekers with “nearly 20,000” opportunities. 

USAID and the economy

USAID also helped Egypt’s “economic growth and prosperity … with its investment [to expand] telecommunications networks and enhance water and wastewater facilities,” the Borgen Project noted. Those projects benefited “more than 25 million people” in the country.

The development agency also directly aided private sector companies in creating jobs by “stimulating entrepreneurship and strengthening enterprises, contributing significantly to the realization of Egypt’s Vision 2030,” the project added.   

ManuTech Challenge Egypt, a joint program of USAID, Development Alternatives Inc. (DAI), and the Chamber of Technology and Telecommunications, was held in 2022 and 2023 to promote startups. According to the program’s website, it was “a call for all entrepreneurs, manufacturing professionals, postgraduates, and technology experts” to submit innovative solutions in sustainability, maintenance, automation, and warehouse management.

Agriculture received $1.4 billion in investments from USAID between 1978 and 2023. According to the Borgen Project, “These investments have not only increased agricultural export revenue by 1,500% but have also empowered small-scale farmers.”

One standout program was the 2018-2023 Feed the Future Egypt Rural Agriculture Strengthening initiative. It connected Egyptian farmers and food processors with domestic and international markets, offering financial support and promoting food safety practices. The program also modernized agribusinesses by upgrading processing facilities, refrigeration trucks, and irrigation systems, the project’s blurb said

The 2019-2024 Center of Excellence for Agriculture program supported research necessary for the steady growth of Egypt’s agricultural sector. It also gave local farmers access to vital agricultural information to protect their operations and maximize yields.

In tourism, USAID concluded its $6 million restoration project of some of Egypt’s landmark sites in 2023. Meanwhile, the four-year USAID-funded Integrated Management of Cultural Tourism program, which revived cultural sites across Greater Cairo and other governorates, concluded in August.

USAID’s most prominent contribution to Egypt’s national health was during the COVID-19 outbreak when more than 29 million vaccine doses were delivered to 18 million people, and $64 million was earmarked to help government-owned medical facilities.

Discontinued edu-projects

USAID’s STEM Teacher Education and School Strengthening Activity, a $24 million seven-year program set to expire at the end of 2025, stopped overnight after Trump shut down the agency. It comprised two interrelated projects.

The first “guided and supported the expansion of the original STEM school model to 27 STEM schools, one in every governorate,” said the 21st Century Partnership for STEM Education, a nonprofit. The other project “supported the development of integrated STEM teacher and leadership programs at five public universities, including a four-year undergraduate degree in STEM teaching and post-baccalaureate diplomas in STEM leadership and teaching.”

Another defunct program scheduled to expire by the end of 2025 was the 2023 Teach for Tomorrow initiative. It “developed the performance of primary school teachers, procedures for eligibility for promotion for teachers, and a system for motivating and encouraging them to continue professional development,” the Ministry of Education said in a press release.

USAID’s 2021 Partnership with Google was also due to expire at the end of this year, but has now been discontinued. It offered training and education to women in business and women-owned startups.

The 2022 to 2031 USAID Scholars and Egyptian Pioneers Program initiatives were suspended. The former was “implemented by The American University in Cairo (AUC) and offers … opportunities for four or five years of university scholarships,” noted AUC’s program web page. Ten private and public universities participated in the program, targeting applicants to member universities.

Egyptian Pioneers is also an AUC program focusing on “women’s empowerment, diversity, inclusion, and climate resilience.” Before its closure, the program had helped “700 young Egyptians (50% women) from underserved communities to obtain undergraduate degrees.” The program also allowed mid-career government professionals to obtain a master’s degree and do postdoctoral studies. 

Also discontinued is a $130 million agreement signed in June between USAID and the Ministry of International Cooperation (MIC). “This partnership … reinforces Egypt’s priorities in the development of education, higher education, implementing the STEM schools system, increasing investment in human capital and empowering women, and improving the capacity of small farmers [via education] to increase income,” noted the U.S. Embassy’s press release. 

According to media reports, USAID had approved 372 scholarships for 2025 before it shut down.

Other halted projects

Aside from education, USAID’s five-year umbrella initiative, the Business Egypt Program, ended one year early in January. DAI implemented it “to sustainably increase sales revenues and investment among Egyptian micro, small and medium-sized enterprises,” according to AmCham Egypt. “Business Egypt’s proposed value chains [included] solar power, processed fruits and vegetables, information technology services, ready-made garments, and automotive supply.”

Meanwhile, the now-defunct five-year USAID Trade Reform and Development in Egypt (TRADE) program was scheduled to end next year. It aimed to “improve trade and investment policy while reducing trade barriers,” according to a press release from Venture 37, one of the project’s partners. “TRADE partnered with both public and … business associations and export councils to strengthen trade services for small and medium exporters.”

When it shut down, TRADE had advised “more than 300 new and expanding export-ready enterprises to improve compliance with international standards, increasing market entry and export revenue.” It also provided “comprehensive food safety training and technical support services.” Lastly, TRADE was working “to reduce the time and cost of importing to Egypt by up to 60%.”

Another discontinued program was the 2022 joint project between the Ministry of Justice, MIC and USAID to develop Egypt’s economic courts. It was part of a national plan to reform economic governance spearheaded by MIC and USAID.

The Ministry of Tourism and Antiquities and USAID agreement signed in November 2023 to restore 11 historic sites in Cairo and Luxor also has been discontinued. As of August, two tombs and eight chapels had been restored, along with creating easier access to Khonsu Temple and Theban Tombs. The program also trained more than 300 ministry employees.

The status of the Ending Violence against Women and Girls in Egypt program launched in June 2024 by USAID and the United Nations Population Fund, the UN’s development arm, is still uncertain, as the latter has not announced whether it will continue without the U.S. partner.

New for 2025

In September, USAID pledged $129 million in initial investments in 2025 “to achieve Egypt’s Vision 2030 for education, continuing to work to protect and preserve Egypt’s cultural heritage, and growing the tourism sector for the benefit of Egyptians and visitors for decades to come,” the U.S. Embassy press release said. 

Those plans would have seen USAID “equip nine additional STEM schools across the country with state-of-the-art equipment for fabrication and science laboratories, U.S. support to upgrade 80 Egyptian technical education schools and expansion of U.S.-funded University Career Centers to 19 more Egyptian universities,” the press release added.

Meanwhile, Illinois Institute of Technology and Drake University’s plans to open branch campuses in Egypt are uncertain, as they involve USAID.

Next in line? 

According to Social Sector Network (SSN), a development consultancy, USAID’s closure “inevitably leaves gaps in global development efforts.” That opens the door for the private sector “to step up,” SSN said in a February post.

It noted “replacing USAID” could happen if businesses collaborate with governments and NGOs to address development challenges. “The Global Alliance for Vaccines and Immunization [is] a successful [example] involving governments, the World Health Organization, UNICEF and private companies like GlaxoSmithKline and Pfizer.” 

Another option for the private sector to “generate both financial returns and positive social outcomes” is to enter projects such as “promoting sustainable development from clean [local] energy startups,” SSN said. One example is Acumen, a nonprofit investment fund that financed companies offering green energy solutions in Africa and Asia. 

Traditional solutions also could prove effective. The first option is for corporate social responsibility programs to focus on “goals traditionally championed by USAID,” SSN said. Another is launching products and services catering to the same beneficiaries as USAID programs. 

The Network highlighted Google’s Project Loon, which uses high-altitude balloons to provide internet access to remote areas, helping bridge the digital divide in underserved regions. Another is MasterCard’s Labs for Financial Inclusion, which has developed digital tools to bring financial services to unbanked populations in Africa and Asia.

A third option involves disaster response and humanitarian aid. “During the 2010 Haiti earthquake, companies like FedEx and UPS played a crucial role in delivering humanitarian aid swiftly,” SSN said. “Similarly, Airbnb’s Open Homes program has provided free temporary housing to people displaced by natural disasters and conflicts.”

Making the shift requires companies to overcome two main challenges. First, businesses are inherently driven by profit, which may conflict with the long-term goals of sustainable development. Second, companies must adopt accountability and transparency standards similar to USAID’s. 

Ultimately, private sector companies need “effective … coordination among multiple stakeholders,” SSN said. That includes having a detailed, comprehensive national development strategy “to avoid duplicating efforts or undermining existing initiatives.”