U.S. Cuts $50 Million in Annual Health Aid to Zambia Over Systematic Theft of Donated Medicines

The United States government has announced a significant cut of $50 million (approximately K1.4 billion) in annual health aid to Zambia due to what it described as “systematic theft” of life saving medicines donated to the country.

Speaking at a press briefing in Lusaka, U.S. Ambassador to Zambia Michael Gonzalez delivered the sombre message, stating that despite over a year of high level engagements and appeals to Zambian authorities, meaningful action to stop the diversion of health commodities and hold perpetrators accountable has not been taken.

“This is not a decision we’ve taken lightly,” Ambassador Gonzalez said. “It is with a heavy heart that the United States is cutting $50 million in funding meant for critical HIV, malaria, and tuberculosis medications and medical supplies.”

According to the Ambassador, the theft was uncovered through a country wide investigation initiated in late 2021, during which U.S-appointed buyers visited over 2,000 private pharmacies across all provinces. Shockingly, 95% of pharmacies were found selling medicines that should have been distributed for free, with 45% confirmed to be selling U.S-donated medical products.

Ambassador Gonzalez emphasized that the U.S. informed Zambian authorities immediately and engaged in more than 33 senior-level meetings over 13 months, offering technical and law enforcement support to stem the theft. Despite these efforts, the Ambassador noted that the response was limited, with accountability efforts focusing largely on low level actors rather than the masterminds of the scheme.

The U.S. contribution represents about one in every three Kwacha spent on Zambia’s public health and has included annual donations of up to $128 million for HIV, malaria, and tuberculosis medicines.

“We are incredibly proud of our partnership with Zambia, which has helped reduce HIV transmission and mortality from malaria and TB by over 75%,” Gonzalez stated. “But we can no longer justify continued massive support when accountability is lacking.”

While the exact scope of the aid cut is still being finalized, the U.S. government said it will continue to supply medicines until the end of 2025 to allow Zambia time to transition and avoid stockouts. The U.S. has also pledged to assist with logistics and technical support to ensure continued care for patients currently on treatment.

The press briefing ended with the Ambassador reaffirming the United States’ commitment to the Zambian people but insisting that "the United States will not underwrite the enrichment of fraudsters at the expense of patients."

The Zambian government has yet to issue an official response to the U.S. announcement.