By Wezzie Gausi:
The United States Agency for International Development (USaid) has issued a stop-work order (SWO) and award suspension notice to its implementing partners in Malawi.
This follows two executive orders which new president Donald Trump signed on January 20 this year.
An SWO is a legally binding instruction given to a contractor, asking them to suspend all work on a project. The order may be given by word of mouth but it is only enforceable when confirmed in writing.
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The directive impacts all USaid-funded projects in the country with immediate effect.
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Only until further notice can subsequent action be taken.
The notice, dated January 27 2025, requires implementing partners to cease activities under existing agreements and halt any expenditures related to ongoing projects.
Affected organisations have been instructed to notify their sub-awardees about the suspension and take measures to minimise costs already incurred.
The decision stems from two recent executive orders. The first, titled ‘Reevaluating and Realigning United States Foreign Aid’, mandates a comprehensive review of US foreign assistance programmes to ensure alignment with American interests.
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The second order, titled ‘Ending Radical and Wasteful Government DEI Programmes and Preferencing’, specifically targets diversity, equity, inclusion and accessibility (DEIA)-related activities.
According to USaid’s Supervisory Contracting and Agreement Officer Natalie Thunberg, partners must confirm the cessation of DEIA-related activities or certify that their projects do not involve DEIA elements.
“Your organisation must immediately comply with this notice,” Thunberg emphasises in the directive.
The suspension has raised concerns over the potential disruption of critical development programmes in Malawi.
Yesterday, the US Embassy in Malawi responded to inquiries, stating “the suspension aligns with broader policy shifts intended to reassess the strategic value and effectiveness of US foreign aid investments”.
The embassy further assured that USaid was committed to a smooth transition and that it had provided resources for partners to seek clarifications.
According to the embassy, partners are encouraged to submit questions via a designated form and sign up for updates through USaid’s implementing partner portal.
As organisations grapple with the suspension, the long-term impact on Malawi’s development landscape remains uncertain.
Many USaid-funded projects, ranging from health to agriculture, are integral to local communities.
USaid has pledged to provide further guidance soon.
In the meantime, implementing partners are required to acknowledge receipt of the stop-work order and confirm compliance.
Information Minister Moses Kunkuyu said developed countries such as the US knew and appreciated that Malawi was one country that had invested heavily in efforts to eradicate poverty, disease and other socio-economic ills.
He, however, said, being a repetitive victim of natural disasters and global economic woes, it was clear that Malawi still needed a hand from development partners “while we enhance our economic recovery endeavors”.
He said the recent resumption of direct budgetary support from some donors was an indication that helping Malawi through various programmes was not helping a consuming Malawi but, rather, helping Malawi to stand on its feet.
“It is, therefore, in the interest of Malawi for rich countries to continue developing suitable partnering arrangements with countries like Malawi as reliable partners in the global development agenda,” Kunkuyu said.
