News & Media

Yemen faces economic freefall and devastating aid crisis after a decade of conflict

March 28, 2025

A decade after a Saudi-led coalition intervened to restore the internationally recognized government of Yemen to power, the country remains deeply divided, facing economic freefall and a devastating humanitarian crisis, Oxfam said today.

Competing financial policies in the North and the South have caused economic collapse. Violations of human rights, the detention of humanitarian workers, and unacceptable conditions on aid imposed by the authorities in Sana’a have exacerbated suffering.

In the South, despite strong international support, the internationally recognized government has failed to provide basic services or stabilise the currency. Over the last 10 years, the Yemeni rial has depreciated by more than 90 per cent in government-controlled areas – pushing basics like food, water, and health care out of reach for most Yemenis. This inflation is only worsening – the rial lost 30 per cent of its value in February alone.

In the North, the Houthis have made it increasingly difficult and dangerous for the humanitarian community to operate and provide vital food, cash and other assistance. Their arbitrary and unlawful detention of Yemeni humanitarian workers and members of civil society has worsened the already difficult operating environment. Authorities should release all unlawfully held detainees, including Oxfam staff.

The environment of restriction and fear imposed by the Houthis, coupled with the US government’s freeze of foreign assistance funding and imposition of heightened legal risks, have caused many humanitarian organisations to wind down their operations, leaving millions of people without the means to survive and without access to education and health services. Families are facing higher prices and reduced humanitarian assistance.

Pauline Chetcuti, Oxfam International’s Head of Humanitarian Advocacy and Campaigns said:

“Yemenis deserve – and have the right – to live in safety, have access to food, water, health care and to lead on a path towards a peaceful future.

“The last decade has been devastating for Yemenis, and we’ll only see these deadly consequences compounded without urgent action from authorities and the international community to allow the economy and the aid community to operate.”

Education and healthcare services have been decimated, leaving millions without critically needed support, and civil servants without salaries. Health facilities across the country have been significantly impacted by the conflict; just 40 per cent are now only partially functioning or completely out of service due to shortages of staff, funds, electricity, medicines, and equipment.

The war has destroyed much of Yemen’s critical infrastructure – the roads, bridges, markets, hospitals, schools, and private factories that powered Yemen’s economy. Though the frontlines have largely been frozen since the ceasefire in April 2022, competing monetary policies and the absence of a full political settlement have left more than 17 million people – nearly half of Yemen’s population – food insecure.

Yemeni families are facing higher prices and reduced humanitarian assistance stemming from the US government’s designation of the Houthis as a Foreign Terrorist Organization. The designation creates significant obstacles to life-saving humanitarian assistance and commercial imports of food and medicine. It also adds a barrier to the vital flow of remittances from Yemenis abroad to their families, which account for approximately a fifth of Yemen’s GDP; a vital part of Yemen’s social safety net. Yemenis need to see an end to the Houthis’ rights violations and international attacks, but this designation is unlikely to make that happen. Governments should support international accountability mechanisms for all parties to the conflict – and not penalise Yemeni families by cutting off lifesaving aid.

The decade of conflict has killed over 19,000 people and displaced nearly five million people, disproportionately women and children. These figures will only grow as more legal and security barriers are placed on the economy and the aid community.

Chetcuti said: “Regional and global powers should collaborate to support a genuine peace instead of supporting aligned factions and furthering their narrow political interests. Only through a Yemeni-led political process that includes women, youth, and civil society can Yemenis emerge from crisis and enjoy basic peace and security.”

Notes to editors

Figures from Relief Web and UN.
The number of people estimated to experience food insecurity and malnutrition is expected to rise far beyond the figure listed above (17 million) due to global cuts to aid funding.
The 26 March 2015, is generally considered the start date of the international dimension of the conflict in Yemen with the start of airstrikes by the Saudi-led-coalition and reciprocated fighting by all parties, though it’s acknowledged the internal conflict started much earlier.
US is responsible for half of humanitarian programmes in Yemen which have stopped overnight, and the UK will taper its aid over a two-year period, with potential effects on humanitarian programming in Yemen.

Contact information

Rachel Scahevitz – [email protected]

Humanitarian operations in Gaza severely hampered; famine risks increasing

March 25, 2025

Restoring ceasefire deal vital as death toll hits 50,000 and continues to rise amid Israeli airstrikes, aid and power blockades and renewed mass forced displacements

Oxfam and partners’ operations have been severely hampered as Israel’s renewed military assault and ground offensive on Gaza continues into its 7th day.

Oxfam is calling for a renewed ceasefire and for Israel to lift its 23-day siege which is again blocking aid supplies and increasing famine risks for desperate civilians. Israel imposed a complete blockade 23 days ago and cut off electricity to Gaza a few days later.

Israeli authorities are denying entry to trucks loaded with 63,000 metric tons of food for 1.1 million people. Operations have been forced to stop in vital areas such as food security and livelihood, as well as hygiene promotion, and essential repair work to damaged water infrastructure.

Bushra Khalidi, Oxfam’s OPT Policy Lead, said:

“During the 42-day ceasefire families in Gaza could finally fall asleep knowing their loved ones would still be beside them when they woke up. Even though aid that entered was not enough—far from enough—it was something. The price of food stabilized. Supermarkets reopened. Bakeries began running again. Many people even went to their homes or what was left of it, and tried to repair and rebuild, however little they could.”

Humanitarian agencies were able to mount operations that saw an average of more than 4,000 trucks per week entering Gaza despite Israeli authorities initially only partially opening the crossings and denying much of the urgently needed reconstruction materials. Oxfam reached almost 200,000 people with essential relief.

Israel’s renewed bombardment of residential areas, including Jabalia and Khan Younis, has killed almost 700 people, including at least 200 children since March 18. Israeli authorities have issued new mass forced displacement orders, forcing around 120,000 Palestinians to flee. These orders are causing panic and chaos in the absence of anywhere safe in Gaza.

Oxfam says humanitarian operations have been gravely hindered by the absence of guarantees of safety for aid workers moving around Gaza.

Oxfam and its partners say their storage facilities containing food parcels are severely depleted. Israeli authorities have denied access to Oxfam shipments of six desalination units and seven trucks of water and sanitation infrastructure, up to 85% of which has been destroyed by Israel’s bombing campaign.

“Oxfam, through its partners has been able to initiate emergency water trucking across the Gaza Strip, and are maintaining some other aid programs, such as multi-purpose cash transfers, despite the severe challenges that all humanitarian workers now face around lack of protection,” said Khalidi.

“For the past 535 days, Israel has been systematically weaponizing life-saving aid, inflicting collective punishment upon the population of Gaza. The denial of food, water, fuel and electricity is a war crime and a crime against humanity. Many within the international community are enabling this by their silence, inaction and complicity.”

Oxfam’s health partner in Gaza, Juzoor for Health and Social Development, had its center in Jabalia destroyed in an airstrike on March 18. It had been serving over 1,000 patients daily. Dr Umaiyeh Khammash, Director of Juzoor, said: “Every airstrike that hits, threatens the lives and safety of our dedicated staff and the patients they serve. This center is not just a building; it’s the heartbeat of healthcare for countless families here. Without it, many will lose access to crucial medical care.”

In another attack yesterday (March 23), three sewage operators from the Abasan Al Kabira municipality working with Oxfam’s partner Coastal Municipalities Water Utility (CMWU) were killed while performing their duties when their clearly- marked truck was destroyed in an attack by Israeli military.

A renewed ceasefire must be permanent and accompanied by the safe return of Israeli hostages and illegally detained Palestinian prisoners. Israel must provide unfettered aid at scale. Oxfam said governments must stop transferring arms, while the international community must enforce international law. We reiterate our call for justice and accountability for all those affected.

Notes to editors

Oxfam works with 19 partner organizations in the Gaza Strip. Between 20 January and 28 February 2025, Oxfam reached a total of 181,622 people across the Gaza Strip with water and sanitation services, including repair and reconstruction, protection, multipurpose cash assistance, distribution of food parcels and essential agricultural inputs for recovery, protection, health care and case management.
Since Israel’s breach of the ceasefire and airstrikes on Gaza on 18 March, Oxfam staff movements have been severely restricted in the absence of a notification system. This week, Oxfam’s progammes in Gaza, including those of many partners, have been severely impacted. Oxfam is still able to undertake some water trucking and multipurpose cash distribution, but under high-risk conditions
The fatality rate in Gaza is based on the Palestinian Ministry of Health reporting on 24 March (11AM) and the fatality rate of children is reported by UNICEF on 21 March
Since 2 March, Israeli authorities have re-imposed a total siege, blockading the entire Gaza Strip. It is banning the entry of any humanitarian basic supplies, including water, food, medical supplies and fuel, as well as banning any commercial supplies to enter Gaza.
On 10 March, Israeli authorities cut off electricity supply to the only operational large-scale desalination plant for drinking water. With the exception of that last remaining, intermittent electricity feed to the desalination plant, Gaza has been under an electricity blackout since 11 October 2023.
The current siege is one week longer than in 2023, when the Israeli authorities imposed a total siege that lasted from 7-21 October 2023.
According to the IPC Special Snapshot – September 2024 – April 2025, the risk of Famine between November 2024 and April 2025 persists as long as conflict continues, and humanitarian access is restricted
According to the Palestinian Water Authority, 85% of the water and sanitation infrastructure in Gaza is destroyed as a result of Israel’s bombing campaign.
The UN reported that during the 42-day ceasefire period, a total of 4,000 trucks per week travelled into Gaza, 600,000 people received polio vaccinations and maternity care was provided for 5,000 births.
Satellite images of the Gaza displacement orders, on 18 March, covers an area amounting to 37% of Gaza’s land and double the size of the original buffer zone. This has been reported by Sky News and the figures have been confirmed by the UN. The UN reported on 21 March that more than 120,000 people had fled since the evacuation orders were issued on 18 March.
Denial of Aid – breaches Customary IHL Rule 55; 1977 Additional Protocol II Arts 69-71 and 81; Fourth Geneva Convention 1949, Arts 23,55-63 and 108-111; Rome Statute ICC, Crime Against Humanity of Extermination, Art 7 1(b) “Extermination” includes the intentional infliction of conditions of life, inter alia the deprivation of access to food and medicine, calculated to bring about the destruction of part of a population.OCHA / WFP food insecurity data, released every tuesday (18 Mar 2025): Most recent OCHA sitrep (18 Mar 2025):
Between 10 and 20 per cent of 4,500 surveyed pregnant and breastfeeding women are malnourished, a recent analysis by the Nutrition Cluster reveals.
To cope with shortages, the Food Security Sector (FSS) partners are drastically reducing food assistance to families, suspending flour distribution to families to prioritize supplies for bakeries, pausing the distribution of fresh produce, and scaling down hot meal preparations at some community kitchens.
FSS warns that over one million people risk being left without food parcels in March, and at least 80 of the 170 community kitchens may be forced to close in one to two weeks, if supplies, including cooking fuel, are not allowed into Gaza. The FSS estimates that more than 50,000 metric tons (MT) of food supplies are required monthly to assist everyone with full rations, in addition to 9,700 MT of flour needed monthly to keep the subsidized bakeries running.
Since the ceasefire took effect on 19 January, and as of 15 March, 4,646 children have enrolled in malnutrition treatment programmes, 672 of whom were diagnosed with severe acute malnutrition.
The Nutrition Cluster notes a decrease in monthly enrolments in such programmes from about 5,000 in the month prior to the ceasefire to a monthly average of 2,500 in Phase One of the ceasefire.
Nutrition Cluster partners observed a rising number of pregnant and breastfeeding women becoming malnourished – between 10 and 20 per cent,
11 March inter-agency mission to eastern Khan Younis found that agricultural facilities had been largely destroyed, including 1,400 dunums of open land,150 greenhouses, 90 poultry farms, and dozens of livestock and dairy cattle farms. The remaining cultivated land did not exceed 70-80 dunums.
Market survey carried out by WFP covering key developments during the first half of March (14th Mar published):
WFP currently has sufficient food stocks to support active kitchens and bakeries for up to one month, as well as ready-to-eat food parcels to support 550,000 people for two weeks.
WFP has approximately 63,000 metric tons of food destined for Gaza, stored or in transit in the region. This is equivalent to two to three months of distributions for 1.1 million people, pending authorization to enter Gaza.
Traders have begun withholding goods due to uncertainty over when new supplies will arrive.

Hunger skyrockets by nearly 80 percent in Eastern and Southern Africa over past five years amidst worsening water crisis

March 20, 2025

Nearly 116 million people in eight African countries, hardest hit by severe water crises, lack access to drinking water.
Globally, flash floods have become 20 times more frequent between 2000 and 2022.

The climate crisis has dramatically worsened water scarcity in Eastern and Southern Africa over the past few decades, leaving nearly 116 million people –or 40 percent of the population – without safe drinking water, according to a new Oxfam report.

Climate change is supercharging extreme weather events like droughts, cyclones and flash floods, and has led to the disappearance of more than 90 percent of Africa’s tropical glaciers and the depletion of groundwater. This has had knock-on effects on Africa’s small-scale farmers, pastoralists and fisherpersons leaving millions without basic food, drinking water or income.

Oxfam’s report –Water-Driven Hunger: How the Climate Crisis Fuels Africa’s Food Emergency – published ahead of World Water Day, looked at the links between water scarcity and hunger in eight of the world’s worst water crises: Ethiopia, Kenya, Malawi, Mozambique, Somalia, South Sudan, Zambia and Zimbabwe. It found that the number of people experiencing extreme hunger in those countries has surged by nearly 80 percent over the past five years – reaching over 55 million in 2024, up from nearly 31 million in 2019. That is two in every ten persons.

The report warns that La Niña weather pattern, which will last through this month, will worsen floods in swaths of Southern Africa and South Sudan while causing severe drought in East Africa further threatening people’s food availability and income.

Globally, flash floods have become 20 times more frequent between 2000 and 2022 and the duration of droughts has risen by 29% since 2000, impacting the most vulnerable communities.

Existing poverty, deep inequality and chronic under-investment along with poor governance in water systems have compounded this climate-fuelled water crisis. African governments are currently meeting less than half the US$50 billion annual investment target required to achieve water security in Africa by 2030.

Fati N’Zi-Hassane, Oxfam in Africa Director said:

“The climate crisis is not a mere statistic—it has a human face. It affects real people whose livelihoods are being destroyed, while the main contributors to this crisis—big polluters and super-rich—continue to profit. Meanwhile, national governments neglect to support the very communities they should protect.”

And it’s not just the African continent facing these challenges, Pacific Island communities also rely heavily on rain as their primary water source. According to drinking water reports published by the World Health Organization, 43% of Pacific families access water from unmanaged sources like surface water or rainwater, making Oceania the least developed region for water access—ranking even behind sub-Saharan Africa. With climate unpredictability on the rise, more communities across the Pacific face water insecurity every year. Pacific leaders have called this the greatest threat to the region’s safety and security.

The Oxfam report also found that:

In the eight countries studied, 91 percent of small-scale farmers depend almost entirely on rainwater for drinking and farming.

In Ethiopia, food insecurity has soared by 175 percent over the past five years, with 22 million people struggling to find their next meal.

In Kenya, over 136,000 square kilometers of land have become drier between 1980 and 2020, which has decimated crops and livestock.

In Somalia, one failed rainy season is pushing one million more people into crisis-level hunger, raising the total to 4.4 million—24% of the population.

A farmer from Baidoa, Somalia explains: “In the past, we knew when to farm and when to harvest but that has all changed. The rains now come late or not at all. Last year, I lost all my crops and animals. I have now planted but the rains have still not come. If this continues, I will not be able to feed my family.”

Deep inequalities mean that disadvantaged people like women and girls are too often the first and most severely punished by this water crisis. In Ethiopia, Kenya, and Somalia, women and girls walk up to 10 kilometers in search of water, facing violence and extreme exhaustion. Many women and girls in rural households spend hours each day collecting water—time that could otherwise be spent on education or income generation.

“At the heart of this climate crisis lies a justice crisis. Sub-Saharan Africa receives only 3-4 percent of global climate finance, despite being heavily affected by climate change. Rich polluting nations must pay their fair share. It’s not about charity, it’s about justice.

“African governments must also double down on their investment in water infrastructures and social protection to effectively manage natural resources, and help the most vulnerable communities cope with climatic shocks,” added N’Zi-Hassane.

//END

Notes to editors

Download the report –Water-Driven Hunger: How the Climate Crisis Fuels Africa’s Food Emergency

Oxfam calculated the 79% rise in hunger based on the number of people facing IPC Phase 3 level and above of acute food insecurity according to the Global Report of Food Crises (GRFC) in 2019 and 2024 across Ethiopia, Kenya, Malawi, Mozambique, Somalia, South Sudan, Zambia and Zimbabwe. This calculation also showed that in Ethiopia, hunger rose by 175%.

The number of people across the eight countries without access to clean water is 115.9 million. This was calculated based on FAO’s AQUASTAT Indicator for “% of Total Population with Access to Safe Drinking Water” and the 2021 population figures according to the World Bank’s World Development Indicators.

All eight countries in the report rank among the 30 most water-insecure nations in the world according to the National Water Security Score of the Global Water Security 2023 Assessment. Additionally, the GRFC 2024 report lists these countries amongst 18 where “climate-related shocks” are the primary driver of food insecurity; and the Hunger Hotspots FAO-WFP early warnings on acute food insecurity November 2024 to May 2025 outlook” report identify them to be of “highest concern” expecting to face climate-related risks worsened by La Niña this year.

In Kenya, 136,129 square kilometers of land (23% of the landmass) have transitioned from wetter to drier zones between 1980 and 2020. Source: Shifting climate zones and expanding tropical and arid climate regions across Kenya (1980-2020), published in April 2023.

The observed recession of tropical glaciers in East Africa (Tanzania, Kenya, Uganda) since the 18th century is notable. According to a study by Enviornmental Research Climate, Mount Kilimanjaro has lost 91.4% of its glaciers, Mount Kenya has lost 95.8%, and the Ruwenzori Mountains have lost 94.2%.

According to Climate and Developemt study by Sutch et al. (2020), by 2041-2070, maize yield is expected to decline by over 29% in Southern Africa and 32% in East Africa compared to 1971-2020.

By the end of November 2024, central and northern Somalia, northeast Kenya, and parts of southern-southeast pastoral areas of Ethiopia had received less than 60 percent of the average seasonal rains (according to WFP), while this year’s March–May rains are already delayed in the same areas. Source: IGAD Climate Prediction and Application Center

According to “Flash floods: why are more of them devastating the world’s driest regions? Nature Journal, published 7 March 2023, globally, flash floods have become 20 times more frequent between 2000 and 2022.

According to the African Union, approximately US$50 billion annually is required to achieve water security in Africa by 2030. However, current investment range from US$10-US$19 billion is invested each year leaving a funding gap of $11 to $20 billion dollars per year.

In Somalia, one failed rainy season could push one million more people into crisis-level hunger, raising the total to 4.4 million—24% of the population.

The WHO’s drinking water report was published in 2022 and can be accessed here.

Contact information

Rachel Schaevitz | [email protected]

Oxfam reaction to Israel’s attack on Gaza despite ceasefire

March 19, 2025

Reacting to Israeli strikes on Gaza, Clémence Lagouardat, Oxfam’s Humanitarian Coordinator in Gaza, said:

“It is indefensible that Israel has breached the ceasefire agreement by carrying out airstrikes across the Gaza Strip, killing over 300 people and injuring hundreds. The ongoing targeting of civilians and civilian infrastructure cannot be justified under any circumstances.

“The ceasefire glimmer of hope should have been protected for the two million people trying to survive in terrible conditions across Gaza and for the remaining Israeli hostages.

“Israeli authorities have also ordered new evacuations across Gaza forcing civilians—who have already been displaced multiple times—to flee again with no safe place to go to. These forced displacement orders are violating international law.

“The humanitarian situation in Gaza remains catastrophic. Since the start of the month, which was also the beginning of Ramadan, Israel placed Gaza under a full siege, cutting off food, fuel and all humanitarian aid. One week ago, it cut electricity to Gaza’s main operational desalination plant that supplied clean water to around 500,000 people. Meanwhile, Gaza’s already collapsing medical system is struggling to absorb the rising number of casualties. Hospitals are low on supplies and ambulances are unable to reach the wounded.

“This crisis persists due to the international community’s failure to hold Israel accountable for its violations of international law. This must end. International law is not optional, nor is it selective—it exists to protect all civilians, everywhere, and must be upheld universally.

“All parties must now work to restore a permanent and sustainable ceasefire for all Palestinians and Israelis.”

Cholera and Mpox cases increasing dangerously in DRC as aid cuts push health systems to near-collapse

March 19, 2025

Preventable diseases are sweeping the Democratic Republic of Congo (DRC). Cholera cases increased by 326, Mpox by 269, and measles by 95 people in North Kivu alone, during the last week of February, according to Oxfam’s partners on the ground.

In January, new cases of cholera infections in the country more than doubled to over 3,850, and 67 people died, which is three times more deaths than the previous month, Oxfam calculates based on WHO data.

Ongoing violence and USAID funding suspension is accelerating the collapse of DRC’s fragile health system, leaving millions defenseless against preventable diseases like cholera.

Since the start of the conflict this year, DRC has faced major setbacks in controlling cholera and Mpox. The country lacks testing centers and functional hospitals. The destruction of displacement camps during the violence, including vital water and sanitation infrastructure, is making the situation worse.

“This is turning into a full-blown humanitarian catastrophe. People are drinking water straight from contaminated rivers and springs because water tanks and sanitation facilities have been destroyed. When you combine this with a collapsed health system, cholera is spreading like wildfire,” said Oxfam DRC Country Director, Dr Manenji Mangundu.

“Imagine a hospital without supplies, people drinking untreated water, and patients without much money still being asked to pay for their care. It’s a disaster.” he added.

The suspension of USAID-funded programs in the DRC is already having devastating consequences for vulnerable communities. These abrupt cuts are an immediate threat to the lives of 7.8 million internally displaced people (IDPs) who are already struggling for food, water and shelter. The worst-affected areas include Kirotshe and the city of Goma, where displaced families in overcrowded conditions have little to no access to clean water. More than 70 health facilities and testing centers in North Kivu have been completely destroyed. Those that are running are unable to cope with the multiple outbreaks of preventable diseases.

“Our hospital was 100 percent dependent on humanitarian support,” said Kamara Wabomundu, staff member of the CCLK/Bulimba Health Zone Central Office, one of Oxfam partners. “When our funding was cut, everything collapsed—we had no backup plan. Neither the hospitals nor the communities were prepared. We are asking people to pay for care when they can’t even afford their next meal,” added Kamara.

“USAID was the leading donor in DRC and most aid agencies here relied on its funding to provide life-saving assistance. The international community needs to understand that the systems are rapidly collapsing in DRC. Every moment of inaction means more lives are being lost that could be saved,” added Dr Mangundu

The closure of banks and microfinance institutions has made the situation even worse, paralyzing the distribution of emergency aid through cash transfers. The shutdown of Goma and Kavumu airports has also driven up food prices, making them too expensive for millions of people.

/ENDS

Notes to editors

According to the World Health Organization (WHO) from January 1 to 26, 2025, 3,853 cases of cholera infections and 67 deaths were confirmed which represents a 112 percent increase from the previous month in infection rates as well as a 235 percent increase in deaths in DRC. Data on February infections and deaths comes from Oxfam partners working in DRC.

The United States Agency for International Development (USAID) is the leading humanitarian donor in the Democratic Republic of the Congo (DRC). Last year’s report indicates that it provided over $838 million in 2024 alone, including $414 million specifically for humanitarian needs resulting from the ongoing conflict and displacement.

According to the UN 2025 Humanitarian Response Plan, there are 7.8 million Internally Displaced People (IDP) in DRC — among the world’s highest displacement figures.

Contact details:

Rachel Schaevitz | [email protected]

Kiwi Aid Agencies urge Government to Increase Climate Finance & Foreign Aid Spending

March 17, 2025

In the lead-up to the 2025 budget, an open letter from New Zealand’s international development NGOs has asked the government to increase aid spending in the Pacific region, at a time of significant cutbacks by other bilateral donors.

Wellington, New Zealand 17 March 2025 – Aotearoa’s international development sector has issued an open letter to three ministries imploring them to increase spending on climate finance and foreign aid in the upcoming budget.

The letter, from the Council for International Development (CID), the peak body for New Zealand NGOs and charities in the international development and humanitarian space is addressed to Foreign Minister Winston Peters, Finance Minister Nicola Willis, and Climate Change Minister Hon Simon Watts.

It calls for an increase in NZ funding to Pacific nations to help them adapt and prepare for climate change, as well as to pay for the damage caused by extreme weather. It also calls for a general increase in the foreign aid budget to address the escalating challenges facing the Pacific.

The letter warns that without sustained investment, Pacific nations will bear an unfair burden of the climate crisis they did not create. Increased funding will support resilience, sustainable livelihoods, and disaster preparedness – as well as help Pacific nations to avoid the burden of climate change debt, which is becoming an increasing issue across the region, with Samoa, Tonga and Fiji now spending more on climate related debt than they do on health and education.

Currently, Aotearoa invests an annual NZ$325 million on climate finance for Pacific countries. The letter is requesting that the government increases this to at least NZ$558 million for 2025, and to NZ$1.7 billion by 2035. The New Zealand budget is due to be released on 22 May.

CID is also urging that Aotearoa maintains its current strategy of delivering climate aid as grants, rather than loans. “New Zealand has a proud history of standing with our Pacific neighbours. But as climate impacts intensify, our government must step up its commitments to ensure Pacific communities have the resources they need to adapt and thrive,” said CID Executive Director Peter Rudd. “We welcome the Government’s commitment to grant-based climate finance, which has set a world-leading example. Now, we urge Ministers to strengthen this approach and ensure our contributions keep pace with the growing need.”

The call for increased investment in the aid sector comes as other major donors have begun to step back on aid commitments. The US government, which until recently, was a major donor to the Pacific, suspended USAID in January this year and has terminated 90 percent of its programmes. Other key European donors, including France, Germany, the UK and Switzerland have also reduced spending, removing nearly NZ$22 billion from humanitarian and development funding globally.

Key Asks from the Development Sector

The open letter calls on the New Zealand Government to:

Scale up annual climate finance to NZ$558 million in 2025, ensuring contributions remain additional to Official Development Assistance (ODA).
Maintain New Zealand’s grant-based approach, with at least 50% allocated to adaptation and 50% directed to the Pacific.
Develop a roadmap to increase ODA to 0.7% of Gross National Income by 2030, in line with United Nations targets.

New Zealand has a unique opportunity to strengthen its leadership and partnerships in the Pacific. By investing in climate finance and development cooperation, the Government can build lasting goodwill and security in the region.

As New Zealand reviews its climate finance commitments for the next five years, this decision will shape its international standing and relationships in the Pacific. Aotearoa has long been known for an outward-facing foreign policy guided by kotahitanga, manaakitanga, and aroha. Now is the time to uphold these values rather than retreat from them.

Read the full letter here.