US Cuts Off Aid to Zambia Amid Drug Theft Allegations

By Joanna Ndabala

In a sharp escalation of pressure over persistent corruption in Zambia’s health sector, the United States has slashed K1.4 billion (US$50 million) in aid, citing the government’s failure to curb the systematic theft of donated medicines and medical supplies.

The unprecedented move signals growing frustration in Washington over Lusaka’s handling of the scandal, which has seen U.S.-funded drugs reappear for sale in private pharmacies.

Speaking at a press briefing on Thursday, May 8, U.S. Ambassador to Zambia Michael Gonzales accused the government of dragging its feet despite repeated warnings and months of diplomatic engagement.

“I regret that to date, the government’s actions have fallen drastically short of demonstrating a commitment to safeguarding U.S. assistance and the lives we aim to save,” Ambassador Gonzales said.

He noted that investigations had exposed the widespread diversion of U.S.-funded medicines, which were found being sold in private pharmacies. The Ambassador criticised law enforcement efforts for targeting mainly low-level actors, saying few mid-level officials had been prosecuted, while the masterminds behind the thefts remained untouched.

He also pointed out that, despite more than six months passing since a forensic audit into the Zambia Medicines and Medical Supplies Agency (Zammsa) began, no public report had been released. Gonzales said the lack of transparency raised further concerns about the government’s willingness to hold high-level officials accountable.

“Since October, I’ve warned that failure to act decisively would result in a significant reduction of U.S. support,” he said, adding that the U.S. could no longer “underwrite the personal enrichment of fraudsters while patients go without medication.”

In response, the Zambian government acknowledged the U.S. concerns but defended its efforts to address the issue. Health Minister Dr. Elijah Muchima said the government remained committed to fighting medical theft and thanked the American people for their continued support in strengthening Zambia’s health system, especially in combating HIV/AIDS, malaria, and other diseases.

Dr. Muchima stressed that the problem of drug theft was inherited from previous administrations and predated the New Dawn government, which assumed office in August 2021.

He outlined several measures the government has undertaken, including,

• Commissioning a forensic audit of the entire medical supply chain through the Auditor General’s Office, carried out by PricewaterhouseCoopers.

• Suspending or dismissing several senior officials at Zammsa, including the director general and key directors in procurement, finance, and planning—some of whom are now facing trial.

• Deploying a digital stock tracking system to improve inventory transparency and reduce the risk of diversion.

The government also assured the public that there is no immediate risk of drug shortages, with national availability of essential medicines now reportedly above 75%, up from under 35% before 2021.

President Hakainde Hichilema previously acknowledged the challenges in March, remarking that Zambia must strengthen its domestic capacity to produce its own medicines, especially in light of shifting donor support.

Despite the setback, both governments have expressed a willingness to continue dialogue. The Zambian government reiterated its openness to further cooperation and urged the U.S. to share any additional evidence that could aid ongoing investigations.

Meanwhile, the U.S. has scaled back the majority of its health humanitarian aid programmes in Zambia, signalling a new phase in bilateral health relations amid growing concerns over accountability and governance.

But with USAID now terminating most of its health support, Zambia faces a tough road ahead in rebuilding trust — and protecting lives.

Joana is on a three-month internship at MakanDay after winning the inaugural MakanDay Award for Overall Best Student in Specialised Reporting at the ZAMCOM 7th Graduation Ceremony.