A Promise Too Big to Keep
For decades, USAID has positioned itself as the benevolent force behind Ethiopia’s development, funding billion-dollar projects designed to uplift the country’s most vulnerable populations. The agency has long been the go-to source for ambitious, multi-year initiatives aimed at solving unemployment, poverty, and health crises. The pitch is always the same: with just the right amount of American dollars, the problems of a developing nation can be fixed.
Among these grandiose projects, Kefeta—Amharic for “to elevate”—stood out as a particularly ambitious promise. With a budget of $60 million and a goal to transform the lives of 2 million Ethiopian youth over five years, Kefeta was supposed to be a game changer. It was going to train young people, find them jobs, create financial inclusion, and build youth-friendly health centers.
But now, just three years into the program, the numbers tell a different story—one of underperformance, poor planning, and an increasingly frustrated youth population left with nothing but empty promises.
And with Donald Trump’s decision to dismantle USAID entirely, Kefeta’s fragile structure is now collapsing. But the bitter truth is this: Kefeta was failing long before Trump pulled the plug.
A Catalogue of Broken Promises
Kefeta was supposed to be the lifeline for Ethiopia’s youth, a country where unemployment rates hover above 25% in urban areas and millions of young people struggle to find meaningful work. It was meant to offer them advocacy training, financial services, and job creation programs that would give them a shot at a better future.
Instead, two years in, the results are embarrassingly low.
| Goal | Target (5-Year Goal) | Actual Progress (Year 2, June 2022) | Completion Rate | Assessment |
|---|---|---|---|---|
| Workforce Development Training | 236,000 youth | 511 trained in work readiness, 738 in life skills, 283 in entrepreneurship | 0.7% | Completely off track. At this rate, Kefeta would need 280+ years to meet its training goal. |
| Full-Time Job Creation | 50,000 jobs | 481 jobs and internships created | 0.9% | Severely underperforming. Job creation is practically nonexistent compared to expectations. |
| SACCOs for Youth Financial Inclusion | 150,000 youth | SACCOs launched in 3 cities, no numbers on total beneficiaries | Unclear progress | Not transparent. No data on whether young people are actually accessing financial services. |
| Youth Advocacy Training | 16,000 youth | 703 trained | 4.4% | Way behind schedule. Even if the pace doubles, Kefeta will still fail to meet its target. |
| Health Service Provider Training | 1,100 providers | 130 trained | 11.8% | Slightly better performance, but still behind schedule. |
| Youth-Friendly Hubs | 61 centers | No clear reporting on progress | Uncertain | Lack of transparency. Either no progress has been made, or the numbers are being withheld. |
The project isn’t just failing—it’s barely even functioning. At this rate, Kefeta won’t meet its goals even if it were extended another 20 years.
What went wrong?
USAID’s Playbook: Throw Money, Call It Progress
USAID’s strategy in Ethiopia, and many other parts of the world, has always been volume over depth. The agency funds flashy projects, doles out big numbers, launches massive PR campaigns, and then moves on before anyone can fully assess the impact.
Projects like Kefeta look great on paper. They promise millions of dollars, millions of beneficiaries, and grand transformation stories. But once the press releases are out and the launch events are over, reality sets in:
- There are no sustainable employment opportunities.
- Training programs don’t lead to actual jobs.
- The bureaucracy eats up most of the budget before it even reaches the intended recipients.
For Kefeta, the math was flawed from the start. The idea that $60 million could fundamentally change the lives of 2 million youth over five years was always an illusion. That’s $30 per youth per year—barely enough to buy them a meal, let alone offer meaningful job training or financial services.
The Consequences of False Hope
If Kefeta had simply failed quietly, it might have been just another forgotten development project, buried in the archives of USAID’s long history of underwhelming interventions. But its real damage is in the hope it instilled—hope that is now unraveling into disappointment, frustration, and disillusionment among Ethiopian youth.
For thousands of young people who enrolled in advocacy training, business courses, and financial programs, the assumption was that these efforts would lead somewhere. That they would graduate into a network of support, job placement, and resources that would actually help them break free from poverty.
Instead, they are left with meaningless certificates, unpaid internships, and a market that has no space for them.
What happens when you repeatedly raise expectations and fail to deliver? You don’t just waste money—you create a generation of young people who no longer believe in the system.
The Trump Factor: An Easy Scapegoat for a Bigger Failure
Now, as Trump dismantles USAID, some will point to this decision as the reason why projects like Kefeta are failing.
That would be convenient. But the truth is, Kefeta was failing long before Trump decided to shut the lights off at USAID.
If anything, the program’s collapse should serve as a wake-up call to Ethiopia and other aid-dependent nations:
- Stop relying on foreign aid to fix systemic issues.
- Demand better accountability from NGOs and government-run projects.
- Focus on local solutions instead of outsourcing development to an American agency that has no long-term stake in Ethiopia’s success.
What Ethiopia Can Learn from the Death of Kefeta
Now that the funding is drying up, Ethiopia must ask itself: What comes next?
Instead of waiting for the next USAID-funded initiative, Ethiopia needs to:
- Prioritize sustainable job creation over training programs.
- If training doesn’t lead to actual employment, it’s pointless.
- Build financial inclusion through Ethiopian-owned initiatives.
- SACCOs shouldn’t need foreign aid to exist—they should be locally driven.
- Demand greater transparency from development partners.
- If a program isn’t meeting its targets, call it out—before it wastes millions.
- Encourage private sector involvement.
- Government and NGOs alone can’t fix the economy—local businesses need to be engaged.
The End of USAID and the Beginning of Accountability
USAID’s departure will be painful. But maybe, in its absence, Ethiopia will finally be forced to take a hard look at what works, what doesn’t, and how to build real solutions instead of illusions.
For years, projects like Kefeta have been held up as symbols of progress while failing behind the scenes. Perhaps it’s time to stop waiting for salvation from Washington and start designing a future that isn’t dependent on the empty promises of foreign aid.
Because if Kefeta teaches us anything, it’s that hope without results is just another form of betrayal.
I think you have got it wrong! The data you showed is outdated, which reads June 2022, even that is not correct. If you were a journalist you would have used latest data and also pursue the opinion of the implementers. This is totally shameful!
The article could have been more great if the author had incorporated direct input from USAID staff involved in the Kefeta project. For example: interviews with project managers, field workers, and other stakeholders would have provided valuable firsthand insights into the challenges faced and the strategies employed to address them. By using this information, readers would have gotten a better perspective of the nuance on both the project’s achievements and its setbacks. Additionally, the article appears to rely on selective data to highlight the project’s shortcomings. A more balanced analysis would have included a broader examination of available evidence, recognizing both areas of progress and ongoing challenges. Even in projects that encounter difficulties, success stories often emerge. Featuring interviews with beneficiaries who have experienced tangible improvements in their lives due to the Kefeta project would have added depth and context to the discussion. Rather than focusing solely on critiquing USAID, the article could have also presented constructive recommendations for strengthening development aid.
The Kefeta project has played a vital role in empowered me in transformative ways, in away that i always hope every visionary Ethiopian youth can experience. Through its various empowerment programs, I gained invaluable skills in leadership, entrepreneurship, advocacy, and financial management, among many others. These opportunities allowed me to turn my vision into action, and I am a living witness to Kefeta’s impact. It is disheartening to see false and unreliable criticism directed at such a transformative initiative. Instead of acknowledging its success, some attempt to discredit it with baseless claims—an act akin to biting the very hand that feeds us.
What concerns me even more is the mindset of some of my fellow youth. We live in a time when programs like Kefeta provide us with tools, mentorship, and platforms to grow, yet many expect opportunities to be handed to them effortlessly. Across Africa, young people are striving to access such programs, yet in Ethiopia, we often fail to recognize and fully utilize what is available to us. Some seem to believe that success should come through miracles rather than effort.
The truth is, no program can single-handedly transform lives without the commitment and hard work of those it aims to support. Projects like Kefeta create pathways, but it is up to us to walk them. Blaming the program for our failures while not taking responsibility for our own actions is misguided. Instead of waiting for someone to do the work for us, we must take initiative, apply the skills we gain, and maximize every opportunity presented to us.
Rather than criticizing Kefeta with unfounded accusations, we should appreciate and encourage such initiatives. They are not just programs; they are life-changing platforms designed to uplift Ethiopian youth. Let us focus on making the most of these opportunities, rather than seeking excuses for our inaction. It is our responsibility to rise, take charge of our future, and ensure that such initiatives continue to empower generations to come.
What I share from this post is the insight that we, as Ethiopians, must focus on local strategies and support initiatives that empower local businesses rather than relying solely on external aid. Sustainable growth comes from within—through our own efforts, innovations, and collaborations. However, while advocating for self-reliance, we must also acknowledge the real efforts of aid programs that genuinely strive to improve lives.
Projects like Kefeta are not about creating dependency; they are about providing the right tools and opportunities for youth to build a better future. Criticizing such initiatives unfairly disregards the tangible impact they have had on many individuals, including myself. Instead of dismissing their contributions, we should use them as stepping stones to foster long-term, self-sustaining progress.
True empowerment lies in finding a balance—leveraging available resources while also working toward a future where we rely more on our own initiatives.
Hi There,
This is a very weak reporting full of accusation and nonsense. Just have a look at one of the many nonsense statements “That’s $30 per youth per year—barely enough to buy them a meal, let alone offer meaningful job training or financial services.” Do you think the intent of aid is to pay for lunch for every youth ? Have you computed how much is it when the whole USAID $ is shared with the population of Ethiopia ? (I bet it will not reach $30). From the note, anyone can see the utterly annoyance and disappointment that comes most probably from a person removed from Kefta project. Please come to your mind.
The article’s critique of Kefeta, while valid in highlighting systemic failures, risks defaming the project and its stakeholders if it excludes critical context, such as unreported “side ideas” or mitigating efforts. Here’s why fairness and transparency matter, along with potential legal implications:
1. Unfair Exclusion of Project Nuances
Unreported “Side Ideas”: The article focuses on quantifiable failures (e.g., job creation rates) but omits qualitative aspects, such as pilot programs, community engagement, or policy advocacy efforts that may have been part of Kefeta’s design. For example, if Kefeta indirectly strengthened local NGOs or influenced youth-focused policies, dismissing these as “side ideas” undermines the project’s broader impact. Also, the article does not provide any input from Kefeta’s project team regarding their challenges, efforts, or adaptations made during the implementation phase. It is critical to understand their perspective, including any external factors or unforeseen obstacles they faced, such as logistical issues, political instability, or changes in government policies.
Lack of Balanced Critique and Contextual Understanding: The article’s critique of Kefeta, while pointed, lacks the necessary context provided by the project’s implementers. Development initiatives frequently encounter initial hurdles, including bureaucratic delays, logistical complexities, and unforeseen socio-political barriers, such as the civil unrest experienced in Ethiopia. Without incorporating the perspectives of USAID and local partners, the analysis risks presenting a skewed view. For example, the absence of data on SACCO beneficiaries or hub progress could be attributable to reporting delays rather than inherent project failure. A truly balanced critique necessitates incorporating responses from Kefeta administrators, elucidating the reasons behind setbacks, and outlining any corrective actions undertaken.
2. Engage Directly with Beneficiaries: Contact Changed Lives Youths: The article generalizes youth disillusionment but does not cite testimonials from participants. Organizations like Changed Lives Youths (or similar beneficiary groups) could provide nuanced insights. While many youths may feel betrayed, others might highlight incremental gains, such as skills acquired, or networks built. Excluding these voices perpetuates a monolithic narrative. A follow-up investigation should involve structured interviews with participants to quantify both successes and shortcomings.
3. Outdated 2022 Data Undermines Credibility: The article relies on mid-2022 data, dismissing potential progress in subsequent years. By 2025, Kefeta could have pivoted strategies, scaled interventions, or secured supplemental funding. For example, job creation might accelerate after slow initial capacity-building phases. Dismissing the project as a “defamed” failure based on outdated metrics is premature. The author must update the analysis with the latest figures or, at minimum, acknowledge that 2022 data does not reflect current realities.
4. Legal and Ethical Risks of Defamation: Accusing Kefeta of “betrayal” without conclusive evidence or input from stakeholders’ risks defamation. If the project has since improved outcomes or adjusted targets, the article’s claims could harm reputations unjustly. Legal consequences may arise if USAID partners, or Other Ethiopian entities demonstrate that the piece negligently misrepresents facts. To mitigate this, the author should:
1. Issue corrections if newer data contradicts 2022 figures.
2. Publish a follow-up with USAID or Kefeta’s Administration responses.
3. Clarify speculative language (e.g., “hope without results is betrayal”) as opinion, not fact.
5. Call for Accountability and Transparency: While the article rightly calls for accountability, it should also acknowledge the importance of providing constructive feedback and recognizing any positive contributions made by the project. This approach encourages continuous improvement rather than outright dismissal.
In conclusion, the article’s core argument—that foreign aid often prioritizes optics over impact—is valid. However, its failure to engage Kefeta’s stakeholders, incorporate recent data, or acknowledge potential mid-course corrections undermines its credibility. To avoid legal repercussions and restore balance, the author must update the piece with input from USAID, Kefeta’s Administration, Ethiopian partners, and beneficiaries, while committing to revisit outcomes in 2025. Only then can the discourse shift from blame to actionable solutions and the discussion can move towards fostering a more collaborative and solution-oriented approach to development challenges in Ethiopia.
It is typical of Addis Insight to publish false, unauthorized, invalid and misleading claims.
This article misrepresents the Kefeta project due to its reliance on incorrect and outdated data. As a Kefeta beneficiary, both as a member of the Kefeta coalition and the Kefeta youth SACCO, I’ve personally experienced its positive impact. I’ve received entrepreneurship training and secured a loan to support my small business. Kefeta has undeniably improved the lives of myself and many other young people. Accurate information about the project is available. The Kefeta website offers current details, and interviewing beneficiaries would provide firsthand accounts of its successes. These successes range from basic skills like literacy (being able to read and write) to significant achievements such as opening daycares, launching small businesses, public speaking, proposal writing and confidently applying for and acing job interviews. Furthermore, visiting the remodeled youth centers in cities where Kefeta operates would offer evidence of the project’s positive influence.
The article incorrectly states that only three SACCOs were formed. In reality, Kefeta has established the first youth-owned, youth-managed, and youth-focused SACCO in the country. Within just two years, it has grown to 18 functional branches across 18 cities, boasting over 9,000 shareholders. Other SACCOs in Ethiopia have typically taken over a decade to achieve this level of growth.
Kefeta was able to establish 24 youth coalitions (city, regional, and national) that are legally registered and licensed to implement any project independently. These youth coalitions are home for over 74,000 members (which I am a member of) with the capacity of: Implementing 38 social action projects that solved many youth-focused and community-centered advocacy and development issues. With this, they have received certificates from city-level government organizations. Established 50 youth-owned business enterprises that hired over 600 employees of their peers as a result of sustainable initiatives to generate incomes.
Of the 18 city-level youth coalitions, five of them competed for grants from other donors and received over three million Birr.
The examples I’ve provided are just a small glimpse of Kefeta’s overall impact. Kefeta has hundreds of indicators and activities that touches multiple sectors. A media organization should be committed to verifying sources, obtaining up-to-date information, and conducting interviews before publishing inaccurate assumptions. After all, the name “Insight” implies to capacity to gain an accurate and deep understanding.
This is a very bewildering piece that seems to be exacting some kind of “insider baseball” revenge on Kefeta rather than a thoughtful critique. Of ALL the dysfunctional NGO programs in Ethiopia, you chose the one that has any kind of backbone to rail on. You are being very careless with facts– deliberately and this publication should be above this kind of pettiness. You should aplogize.
Who would trust Addis insight? Huh ? no one! This data is cooked and sad this is the lowest and lamest journalistic act. And the author is not even named here because we know it this story is cooked!
This is article will take you to the court in defaming names!
[…] USAID’s presence in Ethiopia has undeniably saved lives, the agency’s approach has also drawn criticism for focusing on high-profile projects rather than addressing structural issues. The current funding […]