Podcast Summary: This Week in Global Development

Episode: A new era at the African Development Bank, and Trump’s rescission package
Date: September 5, 2025
Hosts: David Ainsworth, Rumbi Chakamba, Adva Saldinger
Guests: Ayna at Mercy (Global Development Reporter), Michael Igoe (Senior Reporter at Devex)

Overview

This episode tackles two major stories shaping global development this week:

1. The leadership transition at the African Development Bank (AfDB), with Sidi Ould Tah stepping in as the new president after the impactful tenure of Akinwumi Adesina.
2. The Trump administration’s strategy to halt foreign aid spending through a budget maneuver known as a "pocket rescission", shaking the foundations of U.S. development finance policy and raising constitutional questions.

1. Leadership Change at the African Development Bank

The Legacy of Akinwumi Adesina

• Adesina’s decade as AfDB president brought significant achievements:

  • Capital growth: Tripling the bank’s capital from just under $100 billion to over $300 billion.

    “He tripled the bank's capital from just under a hundred billion to over 300 billion… in his 10 years in office.” – Ayna at Mercy [00:51]

  • Flagship projects: Launched Mission 300, aiming to bring electricity to 300 million Africans, in partnership with the World Bank—the first collaboration of its kind between the two institutions.
  • Reputation: Widely respected as “Africa’s optimist in chief.”

• Shortcomings:

  • Projects like Desert to Power, aimed at electrifying the Sahel, are only ~3% complete after five years due to vague implementation guidelines and unforeseen challenges (COVID-19).
  • Slow progress on decentralizing AfDB beyond its Abidjan headquarters.

    “Five years in [Desert to Power] is only about 3% completion... in part because people said that it lacked some implementation guidelines.” – Ayna at Mercy [01:37]

The Rise of Sidi Ould Tah and a New Direction

• Background: Sidi Ould Tah is an economist and former Mauritanian minister, with experience in Arab League–backed development banks.
• Geopolitical implications:
  • His election reflects the increasing influence of Gulf States (e.g., UAE, Saudi Arabia) in African development as traditional donors like the U.S. decrease involvement.
  • Growing Arab investments bring both opportunities and controversies (e.g., alleged involvement in Sudan’s conflict and agricultural interests in Ethiopia).

    “His victory… was kind of an acknowledgment that this might be the direction we’re pivoting to… shifting towards new non-traditional donors for Africa.” – Ayna at Mercy [02:55]

Shifting Donor Landscape and African Reactions

• Gulf States are expanding investments and donations to Africa, prompting questions about long-term impacts.
• Some African leaders and citizens view the U.S.'s foreign aid retreat with pragmatic acceptance and even optimism.
  • Memorable quote:

    “Of course this was kind of happening… American presidents are beholden to American voters, they're not beholden to you.” – Former Kenyan President Uhuru Kenyatta via Ayna at Mercy [06:54]

  • Grassroots voices see the U.S. withdrawal as a chance to break from “the aid trap.”

    “This is really necessary. We’ve been really dependent on aid... we need something to kind of shake us out of it.” – Unnamed Somali official [06:54]

Sidi Ould Tah's Priorities and Immediate Challenges

• First 100 Days:

  • Listening to staff and partners
  • Speeding up reforms, cutting bureaucracy
  • Expanding finance for job creation, with focus on women and youth
  • Top priority: Job creation for the continent’s young population

    “His number one priority as president is job creation, which makes a lot of sense. Right. It's a really young continent and, you know, we need jobs here.” – Ayna at Mercy [08:45]

• Big test:

  • Replenishing the African Development Fund (ADF) with an ambitious $25 billion target (the previous record was $8.9 billion).
  • Challenge: U.S. announced it would withdraw its $500 million annual contribution.
  • Increased focus on attracting new donors (especially from the Gulf).

Innovation and Strengthening African Institutions

• AfDB led the way with the first multilateral hybrid capital issue ($750 million), expanding lending capacity and providing models for others.
• Growing trend of African institutions (AfDB, AU) taking more leadership.

  “I'm really fascinated by the shift towards strengthening of African institutions in general... there does seem to be a little bit more willingness to do that.” – David Ainsworth [11:41]

• Coordination between African nations is improving but still faces challenges, particularly in responding collectively to external pressures like U.S. tariffs or policy changes.

2. Trump’s “Pocket Rescission” and U.S. Foreign Aid Policy

What’s a “Pocket Rescission,” and Why Now?

• The Trump White House submitted a new “rescission proposal” to Congress, freezing $4.9 billion in foreign aid funds.
• Rescissions: A technical budget tool intended for last-minute accounting, but rarely used to the current scale or targeted so specifically at foreign aid.
• Key maneuver: The timing (right before the end of the U.S. fiscal year) means funds are frozen for 45 days, effectively causing them to expire unused—regardless of Congressional approval.

  “This is what's called a pocket rescission. And basically it's a way to claw back the funds... it doesn't even matter if it gets approved or not, because the funds are going to expire…” – Michael Igoe [16:18]

• Last used in 1977; the legality of the tactic is questionable and could shift budgetary power from Congress to the executive branch.

Why Is This Significant?

• Marks an escalation in the Trump administration's efforts to cut foreign assistance and shift the burden of global development funding to other nations.
• Puts foreign aid at the center of a constitutional debate over Congressional versus executive authority:

  “Is the White House making a power grab? Is this in violation of the Constitution?” – Michael Igoe [19:08]

• Prominent lawmakers, including Republican Appropriations Chair Susan Collins, call the move “illegal.” [19:08]
• Raises questions about future legal challenges—this could go to the courts.

Uncertainty and the Immediate Outlook

• State Department must spend several billion dollars in foreign aid by September 30 or the funds will expire. Slow pace of spending and administrative resistance complicate the process.

  “The pace of spending from the State Department... has just been much, much slower and created a big, you know, multi billion dollar buildup of funds that will go back to the treasury if they're not spent by September 30th.” – Michael Igoe [21:48]

• Congressional staff and agencies report a lack of communication and strategy from the administration, highlighting broader unrest and uncertainty:

  “Everything is up in the air. Nobody understands what's going to happen. Everything is completely uncertain. Very much a picture of foreign aid, foreign assistance under the Trump administration. More things change, the more they stay the same.” – David Ainsworth [22:56]

Memorable Quotes & Timestamps

• On Adesina’s legacy at AfDB:
  “He tripled the bank's capital from just under a hundred billion to over 300 billion… in his 10 years in office.” – Ayna at Mercy [00:51]

• On Gulf States’ donor pivot:
  “His victory… was kind of an acknowledgment that this might be the direction we’re pivoting to… shifting towards new non-traditional donors for Africa.” – Ayna at Mercy [02:55]

• African pragmatism about U.S. aid exit:
  “Of course this was kind of happening… American presidents are beholden to American voters, they're not beholden to you.” – Uhuru Kenyatta, cited by Ayna at Mercy [06:54]

• On U.S. pulling the 'pocket rescission': “This is what's called a pocket rescission. And basically it's a way to claw back the funds... it doesn't even matter if it gets approved or not, because the funds are going to expire…” – Michael Igoe [16:18]

• On the constitutional stakes:
  “Is the White House making a power grab? Is this in violation of the Constitution?” – Michael Igoe [19:08]

• On overall uncertainty in U.S. foreign aid:
  “Everything is up in the air. Nobody understands what's going to happen. Everything is completely uncertain... More things change, the more they stay the same.” – David Ainsworth [22:56]

Key Insights

• Leadership at the AfDB is entering a period of change, influenced by shifting global donor dynamics and new pressure to innovate and localize African development finance.
• The Trump administration’s use of “pocket rescissions” to target foreign aid marks a new, controversial front in the battle over U.S. federal spending priorities—and could have profound long-term impacts if allowed to stand.
• Both stories illustrate the rapid transformation and increasing complexity of the global development landscape—whether through internal leadership change or external political drama.

For listeners seeking actionable intelligence and deeper understanding on global development's current and future directions, this episode offers authoritative context, sharp analysis, and a candid look at the big changes politics are making on the ground.