The overseas development sector in Ireland is facing “an existential crisis”, as a result of international funding cuts, the Minister responsible for international aid has said.
Neale Richmond, Minister of State for International Development, said organisations operating in the area “must be as flexible as possible to ensure that as much of their vital work continues to be implemented”.
The Minister’s comments followed confirmation of significant job losses at Irish agencies Goal and Concern Worldwide after the US and some other governments announced large-scale funding cutbacks.
The Irish Times reported on Saturday that close to 30 per cent of staff of Irish aid agency Goal - about 930 people in total around the world - are set to lose their jobs amid a financial crisis. This includes about 28 people in Ireland.
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In March, Concern Worldwide said nearly 400 staff had been made redundant.
MEP Barry Andrews, a former chief executive of Goal, said last week the Government needed to have “an honest conversation” with aid agencies and some rationalisation or mergers may be needed.
Goal has been significantly exposed financially by cuts to funding allocated by giant US government aid agency USAid following a review by the Trump administration.
Goal’s annual report for 2023 describes USAid as its “largest donor”. The report said Goal received €103 million that year “which equates to 54 per cent of the total portfolio”.
However, the international aid sector is also facing funding cuts by several other governments.
The Irish Government has said there will no reductions in its aid programme. But it has said it could not provide substitute funding to offset the cuts being made elsewhere.
Mr Richmond said development agencies and their employees were going through an extremely difficult and stressful period.
“These cuts will directly impact some of the poorest and most vulnerable people on the planet,” he added.
“We are in regular contact with all the Irish development agencies and have committed to not only maintain our own aid budget but to allow partners to be agile in response to any cuts to ensure the broadest delivery of programmes possible.
“Our development sector is facing an existential crisis and must be as flexible as possible to ensure that as much of their vital work continues to be implemented,” he said.
The Minister stressed Ireland would work with other countries, “especially allies in the European Union, to continue to advocate for the importance of development aid”.
“Through Irish Aid, the Government provides over €100 million annually to support the vital work of our NGO partners around the world. We are committed to these partnerships and deeply value the work Irish development organisations carry out.”
[ Panic in Africa and concern in Dublin after Trump takes aim at US aid agencyOpens in new window ]
On Saturday, Goal, in its first comprehensive public comments on the implications of the funding crisis, said “life-saving projects” in some areas were now “on hold”.
“In Ethiopia we have many programmes focused on providing critical, life-saving care for children suffering from moderate and severe acute malnutrition. Because of the cuts, we are already receiving reports of children under five years of age participating in therapeutic feeding programmes dying due to interruptions and suspensions of the feeding programme,” its chief executive Siobhán Walsh said.
