Keypoints:
- $212m moved to Ukraine support
- Long-term aid ends by August 2026
- Three embassies to close
SWEDEN will phase out long-term development assistance to five African and South American countries and redirect the funding to Ukraine, public broadcaster SVT reported, citing an announcement from International Development Cooperation and Foreign Trade Minister Benjamin Dousa.
Dousa confirmed on Friday that Sweden will end long-term aid programmes in Tanzania, Mozambique, Zimbabwe, Liberia and Bolivia, closing a decades-long cycle of bilateral support that has shaped institutional development and governance reforms in several of the partner states.
He said the government had concluded that additional support for Ukraine is a priority within a tight national budget.
$212m redirected to Ukraine
According to SVT’s reporting, around $212 million that would have been allocated to the five countries will instead be channelled to Ukraine. The decision marks a major shift in Sweden’s foreign aid strategy as the war in Ukraine continues to dominate European security policy.
‘It is our duty and obligation to support Ukraine. The money has to come from somewhere for the budget to be balanced,’ Dousa told SVT.
The long-term development programmes will wind down over the next two years and close by August 31, 2026, giving agencies and local partners time to transition or complete ongoing activities.
Aid budget cut and embassy closures
The change follows an earlier announcement that Sweden’s overall aid budget will fall from $5.95bn to $5.63bn next year, part of a wider review of national spending priorities. Although the reduction appears modest, it signals a structural reordering of Sweden’s global aid focus.
SVT reported that Sweden will also close three embassies in Bolivia, Liberia and Zimbabwe, which have largely focused on managing development cooperation.
‘This does not mean that we are closing diplomatic ties and relations with these three countries, but that they will be designed in other ways with more focus on trade relations and other people-to-people relations,’ Dousa explained.
Embassy functions related to diplomacy, trade, and consular services will be restructured under other missions or regional structures.
Humanitarian aid will continue
Dousa stressed that humanitarian aid programmes will not be affected by the changes to long-term development support. Sweden intends to continue its contributions to emergency response and relief through multilateral organisations and international NGOs.
The distinction between humanitarian and development aid is central to Sweden’s policy shift. Long-term programmes targeting governance reforms, climate adaptation, education and public health in countries such as Tanzania and Mozambique will be discontinued, while emergency relief and short-term assistance will continue.
Impact on African partnerships
Sweden has historically been a major donor in countries such as Mozambique, Tanzania and Liberia, contributing to institutional reforms and community-level projects. The redirection of funds is likely to trigger concern among civil society groups and partner agencies that rely on predictable, long-term funding cycles.
The government has signalled that economic partnerships and trade promotion could play a greater role in diplomatic relations with the affected countries, reflecting a trend across Europe to shift from traditional aid models to investment-led engagement.
Observers say the decision reflects both the political pressure created by the war in Ukraine and a broader rethink of European aid priorities, with domestic fiscal constraints accelerating the move away from bilateral development cooperation.
