US Pulls Funding From One Of Africa's Poorest Nations, ISIS Moves In

The sudden dismantling of USAID in January under an executive order from Donald Trump pulled away critical programmes in Mozambique.

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Armed militants walked into a mosque in Mozambique last month, demanding the keys and summoning residents through the prayer microphone. Only after unfurling an ISIS flag did locals realise who they were. Faces exposed, one fighter delivered a local manifesto that showed growing ambition and independence. Residents filmed the scene instead of fleeing, CNN reported.

Mozambique's northern Cabo Delgado province has endured eight years of killings, land grabs, and displacement. ISIS seized the port town of Mocimboa da Praia between 2020 and 2021 before Mozambican and Rwandan forces restored partial order. Western governments, including the US, then spiked aid to stabilise the region.

Now, the sudden dismantling of USAID in January under an executive order from US President Donald Trump pulled away critical programmes. Some aid stopped entirely; others were sharply reduced. These included efforts to strengthen government services, counter extremism, and support youth employment.

On September 7, ISIS attacked Mocimboa da Praia and beheaded dozens of mostly Christian men over several weeks, and forced thousands to flee.

Armed Conflict Location & Event Data (ACLED) data shows ISIS violence has surged across Africa this year, with 79 per cent of the group's global activity recorded between January and October. By October, Mozambique accounted for 11 per cent of ISIS-linked violence worldwide.

USAID had been central to Mozambique, where more than half the population lives in poverty and the average age is 17. In 2024, it provided $586 million, about 3 per cent of GDP, for food, water, education, local governance and HIV/AIDS care. Internal documents show that more than $2.4 billion in ongoing or planned projects were left in limbo when the agency shut down.

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In Mocimboa da Praia, USAID used to back programmes for motorcycle taxi drivers and fishermen, both key targets for ISIS recruiters. On the ground, the local hospital laid off up to 15 staff and lacks basic medicines.

A $70,000 program for fishermen also stopped. Many are young men in the age group ISIS targets. A development worker's three children were kidnapped by ISIS six years ago, CNN reported.

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Violence has surged. In the Christian neighbourhood of Filipe Nyusi, emptied by night raids, insurgents killed eight men. Survivors showed where a security guard was beaten and beheaded.

Aid networks across the region have collapsed. In Mueda, up to a dozen aid workers left after USAID shut down, leaving 93,000 displaced people with fewer services. The UN appeal for Cabo Delgado fell from $352 million to $126 million due to funding shortages. By October, only $73.2 million had been received, with just $3.5 million from the US.

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Vast offshore gas fields near Palma remain stalled by insecurity. Total Energies says it may soon lift its force majeure declaration, and Exxon Mobil is expected to decide next year on moving forward. Even as aid cuts deepened, the Trump administration backed the LNG sector. In March, the US Export-Import Bank approved a $4.7 billion loan to Mozambique's LNG company to hire American contractors.

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