Addis Ababa, Ethiopia – The Ministry of Health has ordered the termination of contracts for more than 5,000 employees hired with financial support from the U.S. Centers for Disease Control and Prevention (CDC) and the United States Agency for International Development (USAID).
According to an official letter seen by Tikvah Ethiopia, the U.S. government has notified the Ministry of Health that all work and payments funded through CDC and USAID budget support must be suspended as of January 24, 2025. The letter, signed by State Minister of Health Dr. Dereje Duguma, has been distributed to all regional health offices.
“I urge you to apply this directive to employees hired with the support of the Ministry of Health and employed by your institution under contracts funded by CDC or USAID,” the letter states.
Dr. Dereje Duguma confirmed the authenticity of the directive and elaborated on its implications. He noted that more than 5,000 employees nationwide are working under contracts supported by CDC and USAID.
Uncertainty Over Future Support
Speaking to Tikvah Ethiopia, Dr. Dereje stated that while the measure is being taken to prepare employees for potential changes, there remains a possibility that the U.S. government could revise its decision.
“This is a precautionary step to prepare employees. However, if the U.S. government decides to continue its support, operations may resume as usual. If not, alternative solutions will need to be found,” he said.
The Ministry of Health is in discussions with the Ethiopian government to explore ways to mitigate the impact on affected employees. Dr. Dereje emphasized that the decision was made to ensure that government-employed health workers can continue their work, despite the halt in U.S. funding.
Impact on HIV Programs and Health Services
The majority of the affected employees work under annual renewable contracts, primarily in HIV-related programs. Some have been employed for over 15 to 20 years under this funding scheme. Dr. Dereje acknowledged the potential consequences of terminating such a significant workforce, warning of possible disruptions in healthcare services.
“If thousands of employees are suddenly removed from the sector, it could create serious challenges. The priority is to ensure a smooth transition by transferring responsibilities to government-employed staff so that services are not interrupted,” he explained.
Global and Regional Discussions Underway
Dr. Dereje also noted that discussions are ongoing at various levels, including with the World Health Organization (WHO), which is engaging with multiple African governments affected by similar funding uncertainties.
“We are closely monitoring the situation and maintaining dialogue with key stakeholders. The Ethiopian government has been informed, and efforts are underway to find a solution that minimizes disruption to critical health services,” he said.
Concerns Over Broader Implications
Beyond employment, the suspension of CDC and USAID funding could have wider consequences for Ethiopia’s healthcare system, including the availability of essential medicines and medical supplies. Dr. Dereje emphasized that urgent measures are needed to prevent potential setbacks in disease control and treatment efforts.
“If this situation persists, further difficult decisions may have to be made, including regarding the procurement of medicines and other essential healthcare support. We will continue discussions and announce any updates as new decisions are made,” he concluded.
As Ethiopia grapples with the potential fallout of these cuts, the Ministry of Health remains engaged in negotiations, hoping to secure a resolution that safeguards both employees and vital health programs.
