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Sweden and Germany Slash Aid Budgets to Focus on Ukraine and Defence Spending image from theguardian.com
Image from theguardian.com

Sweden and Germany Slash Aid Budgets to Focus on Ukraine and Defence Spending

Posted 23rd Dec 2025

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Sweden is cutting 10 billion kronor from its development aid allocated to countries including Mozambique, Zimbabwe, Liberia, Tanzania, and Bolivia. This reduction will disrupt rehabilitation, healthcare, and education services for displaced people in Mozambique's Cabo Delgado region. Germany’s humanitarian budget for 2026 is set at €1.05 billion (£920 million), less than half of its 2025 allocation, with funds redirected towards Europe-focused priorities such as support for Ukraine. The development aid cuts reported by Venro include 20% reductions to the World Food Programme and 33% cuts to Gavi. These actions reflect a broader trend among European donors to reframe aid as geopolitical and transactional, prioritizing Ukraine and defense over poverty reduction and health programs.

Mozambique faces a severe humanitarian crisis due to the Cabo Delgado insurgency and natural disasters, with over 300,000 people displaced since July. The country has received only $31 million of the $222 million requested in funding this year. Food distributions now occur every two months and provide around 39% of the caloric needs for affected populations. Sweden's cuts will impact HIV/AIDS programs in Mozambique, Zimbabwe, and Tanzania, among other countries such as Nigeria, South Africa, and Zambia.

Norway is also reallocating funds by increasing Ukraine civilian aid by 2.5 billion kroner while cutting assistance to Africa by 355 million kroner. Similarly, the UK is cutting aid to fund defense spending, and France will reduce aid by €700 million in 2026 while boosting its defense budget by €6.7 billion. Experts warn that these budget reallocations, driven by political pressures, erode international solidarity and destabilize local systems. Communities in the affected regions often have little say in these decisions.

Save the Children Mozambique noted that 2025 was a difficult year and expects 2026 to be extremely challenging, warning that these funding cuts risk reversing a decade of progress in education and child protection.

Sources
The Guardian Logo
https://www.theguardian.com/global-development/2025/dec/21/sweden-and-germany-slash-aid-budgets-to-focus-on-ukraine-and-defence-spending
* This article has been summarised using Artificial Intelligence and may contain inaccuracies. Please fact-check details with the sources provided.