US to fund delivery drones for Africa under new aid strategy – Financial Times

Report on US Foreign Assistance Restructuring and its Impact on Sustainable Development Goals

1.0 Introduction: A Shift in US Foreign Assistance Strategy

The United States Department of State has initiated a significant policy shift in its foreign assistance strategy, moving towards a commercial, “America First” model. This report analyzes a key component of this new approach: a performance-based contract with the drone delivery company Zipline for medical distribution in Africa. The analysis focuses on the implications of this partnership, and the broader policy changes, for the achievement of the United Nations Sustainable Development Goals (SDGs), particularly those related to health, innovation, and global partnerships.

2.0 The Zipline Partnership: An Innovative Approach to SDG 3 and SDG 9

A contract of up to $150 million has been awarded to Zipline to support the manufacturing of drones and the establishment of delivery infrastructure across five African nations. This initiative directly addresses several SDGs:

• SDG 3: Good Health and Well-being: Zipline’s core mission is to deliver essential medical goods, including blood and medicine. This service is critical for improving health outcomes, reducing mortality rates, and ensuring access to essential healthcare services. Studies have already indicated that Zipline’s services have contributed to a reduction in maternal deaths in the health facilities they serve.
• SDG 9: Industry, Innovation, and Infrastructure: The partnership champions the use of innovative technology (autonomous drones) to build resilient and reliable infrastructure for healthcare logistics. By expanding from 13 to approximately 40 operational hubs, the project aims to create a national-scale delivery network, overcoming traditional logistical challenges and enhancing infrastructure for public health.
• SDG 17: Partnerships for the Goals: The contract exemplifies a multi-stakeholder partnership model. It combines public sector funding from the US government with private sector innovation from Zipline. Furthermore, it mandates a significant co-investment of up to $400 million from the national governments of the participating countries, fostering local ownership and collaboration.

3.0 Broader Policy Context: Challenges and Risks to SDG Attainment

The Zipline contract is implemented against a backdrop of substantial changes to the US foreign aid architecture, which pose significant risks to global progress on the SDGs.

3.1 Restructuring of US Aid Agencies

The administration has moved to dismantle the US Agency for International Development (USAID), the primary distributor of US overseas assistance. Key developments include:

1. The cancellation of 83% of USAID programs, as announced by Secretary of State Marco Rubio.
2. The transfer of remaining programs to be administered by the Department of State.
3. A dramatic overall reduction in foreign aid, which stood at approximately $42.4 billion in 2023.

3.2 Potential Reversal of Progress on SDG 3

The reduction in traditional foreign aid has raised serious concerns from the global health community regarding its impact on SDG 3 targets. A study published in the Lancet medical journal projected severe consequences stemming from these cuts:

• An estimated 14 million additional deaths could occur by 2030.
• Significant gains made in combating diseases such as HIV/Aids and malaria could be reversed, directly undermining specific targets within SDG 3.

While new commercial partnerships, such as an agreement with drugmaker Gilead to provide HIV/Aids prevention drugs at cost, are being pursued, critics question whether this model can adequately replace the scale and scope of traditional aid programs essential for public health systems.

4.0 Operational Model and Future Outlook

The Zipline partnership is structured on a “pay-for-performance” basis, where funds are disbursed as delivery milestones are met. This model is intended to ensure efficiency and results-driven outcomes. Zipline has a proven track record, having completed approximately 1.7 million deliveries since its 2016 launch in Rwanda, and now operates in Côte d’Ivoire, Ghana, Kenya, and Nigeria.

The CEO of Zipline’s Africa business, Caitlin Burton, stated the US deal will enable a transition from a regional to a national service model, solving long-standing logistical problems that billions in conventional aid have not. This expansion aims to provide a long-term, sustainable solution that strengthens national health systems, contributing directly to the resilience and equity goals embedded within the 2030 Agenda for Sustainable Development.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 3: Good Health and Well-being
   • The article’s central theme is the delivery of medical supplies such as “blood, medicine and other essential goods” to African countries. It directly discusses health outcomes, including the reduction of “maternal deaths” and combating diseases like “HIV/Aids and malaria.”
2. SDG 9: Industry, Innovation, and Infrastructure
   • The article focuses on an innovative technological solution (drone delivery) provided by the start-up Zipline. It details the plan for “building infrastructure across five African countries,” expanding from 13 to 40 hubs to create a resilient logistics network for medical supplies.
3. SDG 17: Partnerships for the Goals
   • The initiative described is a multi-stakeholder partnership. It involves the US government (Department of State), a private company (Zipline), and the national governments of the African countries involved. The article highlights the financial commitments from both the US and national governments, exemplifying a public-private partnership model.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 3: Good Health and Well-being
   • Target 3.1: By 2030, reduce the global maternal mortality ratio. The article explicitly states that studies found Zipline’s drone service “had helped reduce maternal deaths in health facilities that they serve.”
   • Target 3.3: By 2030, end the epidemics of AIDS, tuberculosis, malaria and other communicable diseases. The article mentions that cuts to foreign aid could reverse gains made against “HIV/Aids and malaria.” It also notes a separate deal with the drugmaker Gilead to deliver “two million doses of its HIV/Aids prevention drug lenacapavir.”
   • Target 3.8: Achieve universal health coverage, including access to safe, effective, quality and affordable essential medicines. The core function of Zipline’s service is to deliver “blood, medicine and other essential goods,” directly improving access to essential medical supplies for populations in the served areas.
2. Under SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… with a focus on affordable and equitable access for all. The article describes the creation of a new logistics infrastructure using drones to ensure reliable delivery of medical supplies. The expansion plan to move “from a regional to a national model” by increasing hubs from 13 to 40 demonstrates the development of this infrastructure.
3. Under SDG 17: Partnerships for the Goals
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The entire initiative is an example of this target. The article details a contract between the “US Department of State” (public) and “drone delivery start-up Zipline” (private) to deliver services in Africa, with a requirement for national governments to also commit funding.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 3 Targets:
   • Indicator for Target 3.1 (Maternal Mortality): The article implies the use of the maternal mortality ratio as an indicator by stating that Zipline’s service “helped reduce maternal deaths.” Progress can be measured by tracking the change in this ratio in the areas served by the drones.
   • Indicator for Target 3.3 (End Epidemics): The article provides a specific number: “two million doses of its HIV/Aids prevention drug lenacapavir” to be delivered. This can be used as an indicator for the number of people receiving preventative treatment for HIV.
2. For SDG 9 Targets:
   • Indicator for Target 9.1 (Infrastructure): The article provides several quantifiable metrics. Progress can be measured by the number of drone delivery hubs established (expanding from 13 to 40), the total geographic area covered by the service (each hub serving “roughly 38,000 sq km”), and the volume of deliveries completed (the company has already completed “some 1.7mn deliveries”).
3. For SDG 17 Targets:
   • Indicator for Target 17.17 (Partnerships): The financial scale of the partnership is explicitly mentioned. An indicator is the dollar value of the public-private partnership, which includes “up to $150mn” from the US government and a required commitment of “as much as $400mn” from national governments.

4. Table of SDGs, Targets, and Indicators

Source: ft.com