UN refugee agency to cut budget by nearly a fifth amid funding shortfalls
GENEVA: The United Nations refugee agency (UNHCR) said on Monday (Sep 1) it plans to scale back its budget by nearly a fifth next year due to financial constraints, even as conflicts, including Sudan’s war drive record numbers of people from their homes.
UNHCR’s projected 2026 budget will fall to US$8.5 billion from US$10.2 billion in 2025, according to a document published online. The agency also plans to close its Southern Africa bureau and cut nearly 4,000 jobs.
A UNHCR spokesperson said the reduced budget remained “aspirational” since the agency has only been half-funded in recent years. He added that donor cuts are already creating greater risks for refugees, warning that “the vulnerable will die” without adequate support.
The Geneva-based body expects the number of forcibly displaced and stateless people worldwide to rise to 136 million in 2026, up from 129.9 million in 2024.
The spokesperson stressed that the 136 million figure was a planning estimate for a donor meeting in Geneva next month, not a forecast.
The closure of the regional bureau in Pretoria, South Africa, will take effect on Oct 1, with its responsibilities absorbed by East and West African offices.
Southern Africa currently hosts refugees fleeing conflict in the Democratic Republic of Congo and violence in northern Mozambique. The Pretoria office employed 72 staff and covered 16 countries.
SERVICES AFFECTED
“We have already started seeing the impact of reduced funding across different operations,” said Duniya Aslam Khan, UNHCR spokesperson for Southern Africa.
“If we were giving cash assistance, it’s reduced cash assistance. Health care services have been affected. Education programs have been affected. Food assistance has been affected.”
Closing the Pretoria bureau was considered the best option to cut costs while maintaining a strong field presence, Khan said.
Aid agencies have been rocked by funding cuts from major donors, led by the United States and other Western governments prioritising defence spending amid rising security fears over Russia.
The US has historically been UNHCR’s largest donor.
The UN World Food Programme, which previously relied on the US for nearly half its budget, also shut its Southern Africa bureau earlier this year citing financial constraints.
