European Aid Cuts Hit Mozambique as Sweden and Germany Slash Budgets
Sweden and Germany slash aid budgets, hitting Africa

European nations are dramatically shifting their foreign aid priorities, slashing budgets for long-term development and humanitarian programmes in Africa to fund support for Ukraine and bolster their own defence spending. This pivot, mirroring earlier cuts by the United States, is creating a critical funding gap for countries already grappling with conflict, climate disasters, and poverty.

A Strategic Retreat from Global Solidarity

Analysts warn that the traditional concept of aid focused on poverty and hunger is being replaced by a more transactional, geopolitically driven model. Sweden announced in December a cut of 10 billion kronor (£800 million) in development funding to nations including Mozambique, Zimbabwe, Liberia, Tanzania, and Bolivia.

Similarly, Germany has set a humanitarian budget of €1.05 billion (£920 million) for 2026, which is less than half of last year's allocation. Spending is now being refocused on crises deemed a direct priority for Europe. Ralf Südhoff, director of the Berlin-based Centre for Humanitarian Action, stated, "I think we are losing a consensus of solidarity and responsibility which has been established for a while now."

This trend is not isolated. The United Kingdom has announced aid cuts to fund defence, while Norway has increased its civilian support to Ukraine by 2.5 billion kroner (£185 million)—a quarter of its aid budget—while cutting 355 million kroner (£26 million) from African programmes. France's 2026 budget will see a €700 million cut to aid, including a 60% reduction in food aid, alongside a €6.7 billion increase for defence.

Mozambique Bears the Brunt of the Cuts

One of the countries hardest hit is Mozambique, which faces a triple threat: a violent insurgency in Cabo Delgado province, recurring cyclones, and severe droughts. The conflict alone has displaced over 300,000 people since July. The UN reports that the country has received only $31 million of the $222 million required this year, leading to inadequate food distribution covering just 39% of caloric needs.

Sweden's funding cuts will directly impact programmes providing healthcare, education, and rehabilitation for those displaced by the Cabo Delgado insurgency, which began in 2017. Ilaria Manunza, country director for Save the Children Mozambique, warned that "every cut compounds the risk of long-term developmental setbacks, particularly in education and child protection." She added that if trends continue, "2026 will be extremely challenging … there is a real risk that progress made over the past decade could be reversed."

Wider Impacts on Health and Hunger Programmes

The repercussions extend beyond Mozambique. Analysis by the Boston Consulting Group indicates that cuts to health programmes tackling HIV/Aids will severely affect six nations, including Mozambique, Zimbabwe, Tanzania, Nigeria, South Africa, and Zambia. Sweden's removal of four African countries from its development funding has already led to cuts in HIV/Aids services, threatening to reverse years of hard-won progress against the disease.

An analysis of Germany's 2026 budget by Venro, a coalition of German NGOs, reveals deep cuts to key global agencies:

  • A 20% cut to the World Food Programme.
  • A 33% cut to the Gavi vaccine alliance.

Notably, one of the few areas spared is Germany's partnerships with the private sector in developing countries. Anita Kattakuzhy of the global south coalition Near criticised the trend, stating, "Budgets are being reshaped under political pressure, and the communities who bear the consequences have no way to shape those decisions."

This strategic redirection marks a profound change in European aid philosophy. As Ralf Südhoff observed, there is a "misleading belief by European actors that they have to play this game now in the same way as Moscow, Beijing, Washington," making future aid more "transactional" and directed where donors see direct benefits. The consequence is a growing vacuum in support for the world's most vulnerable, who are now paying the price for geopolitical recalibration in European capitals.