US aid freeze results in job losses for 600 PHN employees

About 600 employees of Project Hope Namibia (PHN) face dismissal following the decision by United States (US) president Donald Trump to cut aid to developing nations.

Six employees confirmed that they were instructed to stay home late last month and were informed during a virtual meeting on Monday by the country director Rosalia Indongo that their contracts would be terminated. As of yesterday, 342 of the employees have created a WhatsApp group to discuss the way forward.

“Waiting was better, though we did not know what would happen. Suddenly, we were shocked when we were informed that our termination letters were on the way with 50% of February salaries,” one of the employees said.

In a memorandum issued on 29 January, Indongo discouraged employees from discussing issues related to the executive order with external partners such as the media, or beneficiaries unless formally authorised to do so. The memorandum also instructed employees to halt all Project Hope-related work with immediate effect. Employees were, however, told to remain available during regular working hours on Monday to Friday while awaiting further updates and guidance.

The terminations come after Trump announced a 90-day freeze and review of foreign aid earlier this year. PHN, a non-governmental organisation (NGO) operating in six of Namibia’s 14 regions, receives funding from the United States Agency for International Development.

Employees have described their roles as providing psychological support to individuals living with HIV, assisting with medication adherence, monitoring viral loads, and offering HIV prevention education to vulnerable youth.

“[Employees] also conducted HIV testing, provided health education on pre-exposure prophylaxis and family planning, and assessed food insecurity, providing emergency food or cash assistance,” a PHN source says.

Another employee said they were told that they would only be paid part of their salaries for February.

“They [originally] told us to wait at home for 90 days and that our salaries will not be affected. But just in a blink of an eye we are told there is no money and, therefore, we will be getting 50% of our salaries, and that we should sign our termination letters,” the source says.

Employees wrote a letter to the organisation yesterday asking why the termination of their contracts “is being rushed”.

“Why is the termination of 98% of the staff being rushed? Why not wait for the full 90-day period to lapse or at least 60 days? Why has the salary for February been cut by 50%?” the employees asked.

The employees further asked PHN management to postpone the termination of their contracts.

In the January memorandum, Indongo said that management acknowledged “that this situation brings uncertainty, and we appreciate your patience and professionalism.”

Indongo could not be reached for comment yesterday.

The Namibian reported last week that around 260 employees at the International Training and Education Centre for Health (I-Tech), a Namibian organisation that helps HIV patients, face uncertainty due to Trump’s 90-day freeze and review of foreign aid.

I-Tech says it supported screening and treatment at 31 health facilities and 11 outreach sites in seven regions. I-Tech and PHN are not the only programmes affected by the aid cut; the provision of voluntary medical male circumcision has also been affected.

The chairperson of the Namibian Civil Society Non-State Actors Network, Mahongora Kavihuha, in a statement last week said the abrupt end of US financial assistance to NGOs in Africa is an immediate threat to the lives of Namibians, especially those in vulnerable situations.

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