Tag Archives: funding

Kenya: Refugees facing ‘lowest ever’ emergency food rations amid funding crisis

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Over the past five years, the refugee population in Kenya has surged by more than 70 per cent – from approximately 500,000 to 843,000 – driven largely by conflict and drought in neighbouring Sudan and Somalia. Of these, around 720,000 people are sheltering in the Dadaab and Kakuma camps, as well as the Kalobeyei settlement.

In Sudan, the civil war that erupted in April 2023 has killed over 18,000 people, displaced 13 million, and left 30.4 million in need of assistance, according to the UN.

WFP provides emergency food and nutrition support to 2.3 million Sudanese as violence and the collapse of essential infrastructure deepen the crisis. 

In Somalia, severe drought has placed 3.4 million people – including 1.7 million children – at risk of acute malnutrition.

At the weekend, Secretary-General António Guterres recommended that the Security Council ensure financing for the African Union’s Support and Stabilisation Mission there (UNSOM), as the country continues to battle insecurity and attacks from Al-Shabaab militants.

Shrinking rations, rising need 

Previously, a monthly WFP ration for a refugee in the camps included 8.1 kilogrammes of rice, 1.5 kg of lentils, 1.1 litres of oil, and cash for purchasing essentials. That support has now been halved, and cash payments have stopped entirely.

Without emergency funding, food rations could drop to just 28 per cent of their original level. WFP is appealing for $44 million to restore full food and cash assistance through August.

Cuts compound existing crises

Although cuts to foreign aid by many developed nations this year has further constrained operations, WFP began reducing services for Kenya’s refugee population in 2024.

Many of the families arriving are already food insecure, and Global Acute Malnutrition (GAM) rates among children and pregnant or breastfeeding women exceed 13 per cent – three percent above the emergency threshold. Targeted nutrition programmes ended in late 2024 due to lack of resources.

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World Health Assembly opens amid high-stakes pandemic treaty vote, global funding crisis

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Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization, urged Member States to remain focused on shared goals even amid global instability.

“We are here to serve not our own interests, but the eight billion people of our world,” he said in his keynote address at the Palais des Nations. “To leave a heritage for those who come after us; for our children and our grandchildren; and to work together for a healthier, more peaceful and more equitable world. It’s possible.”

The Assembly, WHO’s highest decision-making body, runs through 27 May and brings together delegations from 194 Member States under the theme One World for Health.

This year’s agenda includes a vote on the intensely negotiated Pandemic Agreement, a  reduced budget proposal, and discussions on climate, conflict, antimicrobial resistance, and digital health.

Pandemic prevention focus

A central item on the Assembly’s agenda is the proposed WHO pandemic accord, a global compact aimed at preventing the kind of fragmented response that marked the early stages of COVID-19.

The treaty is the result of three years of negotiations between all WHO Member States.

“This is truly a historic moment,” Dr Tedros said. “Even in the middle of crisis, and in the face of significant opposition, you worked tirelessly, you never gave up, and you reached your goal.”

A final vote on the agreement is expected on Tuesday.

If adopted, it would mark only the second time countries have come together to approve a legally binding global health treaty under WHO’s founding rules. The first was the Framework Convention on Tobacco Control, adopted in 2003 to curb the global tobacco epidemic.

2024 health check

In his address, Tedros presented highlights from WHO’s 2024 Results Report, noting both progress and persistent global health gaps.

On tobacco control, he cited a global one-third reduction in smoking prevalence since the WHO Framework Convention entered into force two decades ago.

He praised countries including Côte d’Ivoire, Oman, and Viet Nam for introducing stronger regulations last year, including plain packaging and restrictions on e-cigarettes.

On nutrition, he pointed to new WHO guidelines on wasting and the expansion of the Tobacco-Free Farms Initiative in Africa, which has supported thousands of farmers in transitioning to food crops.

He also emphasised WHO’s growing work on air pollution and climate-resilient health systems, including partnerships with Gavi and UNICEF to install solar energy in health facilities across multiple countries.

On maternal and child health, Tedros noted stalled progress and outlined new national acceleration plans to reduce newborn mortality. Immunisation coverage now reaches 83 per cent of children globally, compared to less than 5 per cent when the Expanded Programme on Immunisation was launched in 1974.

“We are living in a golden age of disease elimination,” he said, citing the certification of Cabo Verde, Egypt, and Georgia as malaria-free; progress in neglected tropical diseases; and Botswana’s recognition as the first country to reach gold-tier status in eliminating mother-to-child transmission of HIV.

WHO has been supporting Universal Health Coverage in Rwanda.

WHO budget strain

Turning to WHO’s internal operations, Tedros offered a stark assessment of the organisation’s finances.

“We are facing a salary gap for the next biennium of more than US$ 500 million,” he said. “A reduced workforce means a reduced scope of work.”

This week, Member States will vote on a proposed 20 per cent increase in assessed contributions, as well as a reduced Programme Budget of $ 4.2 billion for 2026–2027, down from an earlier proposal of $ 5.3 billion. The cuts reflect an effort to align WHO’s work with current funding levels while preserving core functions.

Tedros acknowledged that WHO’s long-standing reliance on voluntary earmarked funding from a small group of donors had left it vulnerable. He urged Member States to see the budget shortfall not only as a crisis but also as a potential turning point.

“Either we must lower our ambitions for what WHO is and does, or we must raise the money,” he said. “I know which I will choose.”

He drew a sharp contrast between WHO’s budget and global spending priorities: “US$ 2.1 billion is the equivalent of global military expenditure every eight hours; US$ 2.1 billion is the price of one stealth bomber – to kill people; US$ 2.1 billion is one-quarter of what the tobacco industry spends on advertising and promotion every single year. And again, a product that kills people.”

“It seems somebody switched the price tags on what is truly valuable in our world,” he said.

Emergencies and appeals

The Director-General also detailed WHO’s emergency operations in 2024, which spanned 89 countries. These included responses to outbreaks of cholera, Ebola, mpox, and polio, as well as humanitarian interventions in conflict zones such as Sudan, Ukraine, and Gaza.

In Gaza, he said, WHO had supported more than 7,300 medical evacuations since late 2023, but over 10,000 patients remained in urgent need of care.

Looking ahead: a transformed WHO?

The WHO chief closed with a look at the agency’s future direction, shaped by lessons from the COVID-19 pandemic. He highlighted new initiatives in pandemic intelligence, vaccine development, and digital health, including expanded work on artificial intelligence and support for mRNA technology transfer to 15 countries.

WHO has also restructured its headquarters, reducing management layers and streamlining departments.

“Our current crisis is an opportunity,” Dr Tedros concluded. “Together, we will do it.”

Funding cuts in Afghanistan mean ‘lives lost and lives less lived’

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Many women came to the clinic who had walked multiple hours to receive maternal care – some of them with their newborns and some heavily pregnant.

And then there were the health workers themselves, committed to serving those in need in hard-to-reach areas of the impoverished Taliban-controlled nation.

‘Off the radar’

These were some of the scenes witnessed up close by Andrew Saberton, Deputy Executive Director with the UN’s reproductive health agency (UNFPA), on a mission to assess the impact of the recent steep funding cuts.

“I saw and understood the devastating impacts that the massive cuts to UNFPA will have in one of the world’s greatest humanitarian crises, a crisis which may be off the radar of the news but remains one of the world’s greatest crises,” Mr. Saberton told journalists in New York on Wednesday.

During his trip, the senior official visited UN-supported services in Kabul, Bamyan and the border between Afghanistan and Pakistan.

He hoped to understand the difference that UNFPA is making in Afghanistan while also getting a better sense of the impact of funding cuts.

Andrew Saberton (second right), UNFPA Deputy Executive Director for Management, visits the obstetric fistula ward in Kabul, Afghanistan, where survivors receive care.

Budget slashed

The United States has recently announced cuts of approximately $330 million to UNFPA worldwide, $102 million of which will directly impact UNFPA’s work in Afghanistan, according to Mr. Saberton.

Most of this funding would have been used towards the provision of family health and mobile care, both of which are essential in Afghanistan which already has one of the highest maternal mortality rates in the world.

This funding would also have gone towards the providing much needed psychosocial support.

He estimates that 6.9 million women and children in Afghanistan will be affected by the cuts. Moreover, UNFPA will only be able to support approximately 400 of the current 900 health clinics that it supports in Afghanistan, each of which provides life-saving care.

Providing aid with few resources

Despite these challenges, Saberton emphasized that UNFPA will remain in Afghanistan and will continue providing life-saving care.

“UNFPA will be staying to deliver, but we cannot sustain our response without help. We need urgent support to keep these services running and to protect the dignity, health and lives of Afghan women and newborns,” he said.

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As funding cuts bite, UN chief announces new dawn for peacekeeping

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Addressing the UN Peacekeeping Ministerial 2025 in the German capital, the Secretary-General told dozens of ministers from more than 130 countries that peacekeepers remain key to “help countries move from conflict to peace.”

“In trouble spots around the world, blue helmets can mean the difference between life and death,” he insisted. “They are also a clear demonstration of the power of multilateral action to maintain, achieve and sustain peace.”

Despite the proven value of peacekeeping missions in ensuring a durable peace in countless countries from Cambodia to Liberia and Timor Leste, Mr. Guterres warned that today’s challenges have made this task much harder.

“We are now facing the highest number of conflicts since the founding of the United Nations and record numbers of people fleeing across borders in search of safety and refuge,” he said, before alluding to additional obstacles caused by an absence of political support for peacekeeping mandates.

The UN’s peacekeeping budget runs on a July-June cycle and has unpaid arrears of $2.7 billion.

Practical approach

To counter this and in the face of “dramatic financial constraints” now affecting the UN in its entirety, the Secretary-General announced an urgent review of operations to inspire a new peacekeeping model that is “fit for the future.”

In coming years, “a clear exit strategy” for peacekeepers will be key, Mr. Guterres said, as well as working with Member States and the Security Council “to ensure that any new mandates “are prioritized and achievable with the resources available.”

Other clues about what UN peacekeeping 2.0 could look like post-reform might be gleaned from the missions that the UN chief referred to in his speech in Germany.

Active missions such as UNIFIL in Lebanon have already shown that it is possible to adapt to today’s challenges while still ensuring peace and aid deliveries, Mr. Guterres noted.

And in a nod to MINUSCA in the Central African Republic, the Secretary-General highlighted its work in protecting civilians “and assisting the government to extend its reach beyond the capital where people are in desperate need.”

In the Democratic Republic of the Congo, too and despite ongoing fighting there, peacekeepers from MONUSCO also remain in the field and protect vulnerable populations, the UN chief maintained.

As Member States prepared to announce financial pledges for peacekeeping on Wednesday, Mr. Guterres stressed that the overall budget for missions represented only 0.5 per cent of global military spending.

Peacekeeping “is only as strong as Member States’ commitment to it,” stressed Mr. Guterres.

Amid massive cuts to UN funding by Member States, it remains to be seen if the upbeat mood in Berlin translates into desperately needed financial support for the global body’s peacekeeping operations.

“UN peacekeeping today is more vibrant than ever,” insisted Boris Pistorius, Minister of Defence of Germany. “It is and will remain a cornerstone of international stability. Let us commit to making it even more effective for the sake of those who depend on it.”

Cutbacks

The UN chief’s push to streamline the global body comes a day after his call to push ahead with major efficiency improvements and cost-cutting in response to the chronic liquidity crisis caused by Member States falling into arrears.

Important as these sweeping structural reforms are – with potential staff downsizing of up to 20 per cent – they are not the answer to the failure of some countries to pay the Organization to fulfil the mandates they have given it, Mr. Guterres insisted.

According to information provided by the UN Controller to the General Assembly’s Fifth Committee (Administrative and Budgetary), only $1.8 billion has been received against the $3.5 billion regular budget assessments for 2025 – a shortfall of around 50 per cent.

In the budget line for unpaid assessments these amounted to $2.4 billion on 30 April, with the United States owing about $1.5 billion, China $597 million, Russia $72 million, Saudi Arabia $42 million, Mexico $38 million and Venezuela $38 million. An additional $137 million has yet to be paid by other Member States.

For International Tribunals, total contributions outstanding totalled $79 million on 30 April.

© Bundeswehr/Jana Neumann

At the 2025 UN Peacekeeping Ministerial in Berlin, Secretary General António Guterres underscored the vital role of UN peacekeeping and urged Member States to help shape peace operations fit for the future.

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UNFPA calls on US to reconsider ban on future funding

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In a statement, UNFPA said the move – which invokes a 1985 legal provision known as the Kemp-Kasten Amendment – is based on “unfounded claims” about the agency’s work in China. These allegations, it noted, have “long been disproven”, including by the US Government itself.

The Kemp-Kasten amendment states that no funds can go to any organization or programme which support any “coercive abortion or involuntary sterilization,” as determined by the US president.

The funding cut now in effect is in addition to termination notices already issued for more than 40 existing humanitarian projects, representing roughly $335 million in support.

Impact on the most vulnerable

UNFPA – formally the UN Population Fund – said the loss of US support will significantly undermine efforts to prevent maternal deaths, especially in conflict-affected and crisis-hit regions.

“It will cut essential support for millions of people living in humanitarian crises and for midwives preventing mothers from dying in childbirth – work that is a ‘best-buy’ in development, a cost-effective investment that generates positive returns over generations,” the agency stated.

The US, a founding and long-standing partner, has over the decades helped strengthen global health systems and save countless lives, UNFPA said.

“Over the past four years alone, with the US Government’s life-saving investments, we prevented more than 17,000 maternal deaths, nine million unintended pregnancies and nearly three million unsafe abortions by expanding access to voluntary family planning,” the agency added.

Call to reconsider

UNFPA urged Washington to reconsider its position and “reclaim its position as a leader in global public health, saving millions of lives.”

“Funding UNFPA – the only United Nations agency dedicated to reproductive health and rights – is the surest way of reducing the risk of coercive practices around the world,” the agency said.

It also emphasised its continued commitment to dialogue with the US Government through the UNFPA Executive Board, where the United States has been an active member for over 50 years.

The agency also vowed to continue to work tirelessly under its mandate to uphold the health, safety, and dignity of women and girls worldwide.

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Costa Rica’s refugee lifeline at breaking point amid funding crisis

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“Without funding, asylum seekers are left in limbo – undocumented, unsupported and increasingly desperate,” said Ruvendrini Menikdiwela, Assistant High Commissioner for Protection.

Her comments follow a 41 per cent budget cut to the UN agency’s operations in the country that have had devastating consequences. “This is not about luxuries; the assistance we’re cutting is critical and lifesaving,” she insisted.

The Central American nation today hosts more than 200,000 refugees and asylum seekers – adding up to nearly four per cent of its population.

More than eight in every 10 are from Nicaragua, fleeing deepening political and social turmoil linked to serious allegations of “systemic repression”, according to independent rights experts reporting to the Human Rights Council.

Despite economic constraints, Costa Rica has continued to offer safety and hope to those escaping persecution, UNHCR said.

Safe spaces at risk

On a recent official tour of Costa Rica, Ms. Menikdiwela described meeting indigenous Miskito women who had fled gender-based violence and established safe spaces, despite language and cultural barriers. “Their courage is humbling,” she said. “But the loss of services threatens everything they’ve tried to rebuild.”

The UN agency  has warned that legal support, mental health services, education, job training and child protection initiatives have already been scaled back or suspended.

Many were tailored to vulnerable women and children in remote areas.

No right to a job, school or healthcare

Because of the cuts, the capacity to register new arrivals has plummeted by 77 per cent. But without documentation, refugees cannot legally work, attend school or access healthcare. With over 222,000 claims backlogged, some cases may now take up to seven years to process.

“The Government’s plea to me was simple,” Ms. Menikdiwela said. “‘Help us to help these people.’”

Costa Rica has long played a leadership role in regional and global refugee protection frameworks. But this solidarity is now stretched to breaking point, the UN agency said, in an appeal for $40.4 million to maintain its operations in the country Rica through 2025.

“This is a stark reminder that protection must be backed by resources,” Ms. Menikdiwela warned. “If the international community does not step up, the consequences will be severe – not just for those already in Costa Rica – but for stability in the wider region as well.”

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Lives of pregnant women and newborns at risk as funding cuts impact midwifery support

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But despite their critical role, UN support for midwifery is under serious threat due to severe funding cuts.

Each year, three-quarters of all maternal deaths occur in just 25 countries, the majority of them located in sub-Saharan Africa and South Asia, according to the UN reproductive health agency, UNFPA. 

Midwives are often the first and only responders delivering life-saving care to pregnant women and their newborns in crisis settings, where the risk of dying during pregnancy or childbirth doubles.

Funding cuts are now forcing UNFPA to scale back its support for midwifery. In eight of the affected countries the agency will only be able to fund 47 per cent of the 3,521 midwives it had intended to support in 2025.

On the frontline

In times of crisis, women often lose critical access to vital maternity services. Coming to the rescue in the direst of circumstances and serving as a lifeline to pregnant women, “midwives save lives,” said Natalia Kanem, Executive Director of UNFPA.

UN support for midwives in humanitarian settings includes training, providing supplies and equipment and in some cases transportation for mobile health clinics. All this is having to be cut back amid the funding cuts. 

“When crises strike and systems break down, midwives step up,” said UNFPA, marking International Day of the Midwife.

Funding cuts

Amid a global shortage of nearly one million midwives, rising death rates among women and newborns in conflict zones and fragile contexts are now being reported following budget cuts.

“We’re lacking everything, from blood bags to medicines. With the support of UNFPA and other partners, we can still provide services – but for how long?” said Fabrice Bishenge, Director of Kyeshero General Hospital in eastern DR Congo.

Deaths during childbirth in fragile and conflict-affected settings now account for 60 per cent of all maternal deaths globally. Worldwide, deep funding cuts only exacerbate this trend. In Yemen, for instance, over 590,000 women of childbearing age are expected to lose access to a midwife.

© UNICEF/Mukhtar Neikrawa

The waiting room of a maternity hospital in Herat Province, Afghanistan.

New initiative

In light of the current funding crisis, UNFPA and partners recently launched the Global Midwifery Accelerator — a coordinated initiative to scale up midwife-led care in countries with the highest maternal mortality rates.

The initiative sets out a cost-effective roadmap focused on saving lives and strengthening national health systems, even in the most fragile contexts.

Making an urgent call for greater funding, training, and advocacy for midwifery, UNFPA stressed that universal midwife-led health coverage could avert two-thirds of maternal and newborn deaths, reduce healthcare costs, and lead to more productive workforces. 

Funding crisis increases danger and risks for refugees

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With humanitarian resources running dry, critical support for millions of forcibly displaced people is under threat.

UNHCR said that two-thirds of countries hosting refugees are already severely overstretched and urgently need support to continue providing education, healthcare and shelter.

Global solidarity with those fleeing conflict and violence is weakening, the agency added.

‘No one wants to be a refugee for life’

“The safety that refugees seek in neighbouring countries is at risk,” said Elizabeth Tan, Director of International Protection at UNHCR.

“Without international solidarity and burden-sharing, the institution of asylum is under threat.”

Ms Tan noted that some 12,000 Central African refugees in Chad and Cameroon have expressed a desire to return home but cannot do so safely without transport and reintegration assistance.

“No one wants to be a refugee for life,” she said.

Lifesaving services

Marking the agency’s 75th anniversary, Ms Tan reminded journalists that refugees – unlike migrants – have lost the protection of their home countries.

“They arrive across borders traumatised, often after experiencing torture or persecution, and they need specialised support – including mental health care,” she said.

Children separated from their families face especially grave risks, including recruitment by armed groups, exploitation and trafficking.

Protecting them, Ms Tan stressed, “is not a luxury – it is lifesaving.”

© UNHCR/Andrew McConnell

Refugees from Sudan arrive in Adre on the border with Chad.

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WHO chief laments most disruptive cuts to global health funding ‘in living memory’

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“We are living through the greatest disruption to global health financing in memory,” said WHO Director-General Dr Tedros Adhanom Ghebreyesus.

He cautioned that abrupt withdrawals of funding are jeopardising hard-won medical progress, including efforts to combat tropical diseases, which are now re-emerging in some regions.

“This is just the tip of the iceberg,” he told journalists at WHO headquarters in Geneva.

Outbreaks intensify

Since January, Angola has been facing its worst cholera outbreaks in 20 years, with over 17,000 cases and more than 550 deaths recorded so far. 

Inadequate access to safe water, hygiene and sanitation is fuelling the outbreak. 

As WHO and partners carry out a large-scale vaccination campaign on the ground, one of their priorities is to bring the death rate down, said Tedros. 

Amid funding cuts, advances in tackling neglected tropical diseases affecting over one billion people, are disproportionately impacting the poorest and most marginalized communities.

Reduced access

In many countries where insecurity is rife and hospitals are being targeted, access to healthcare has been severely reduced, Tedros continued. 

On April 22, one of Haiti’s largest public hospitals, Hôpital Universitaire de Mirebalais, was forced to shut down due to violence. In the capital Port-au-Prince, more than 40 per cent of health facilities remain closed, he said.  

Needless deaths

Turning to the Gaza blockade, he said the situation there was “catastrophically bad,” with the violence “driving an influx of casualties to a health system that is already on its knees.” 

While essential medicines, and trauma and medical supplies, are running out, “people are dying from preventable diseases while medicines wait at the border,” said Tedros. 

Reiterating the UN’s call for a ceasefire, Tedros added that “peace is the best medicine.” 

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Millions will die from funding cuts, says UN aid chief

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“Cutting funding for those in greatest need is not something to boast about…the impact of aid cuts is that millions die,” warned Emergency Relief Coordinator Tom Fletcher.

Speaking from an overcrowded hospital in Kandahar in southern Afghanistan where three or four patients have to share a bed, Mr. Fletcher warned that the financial crisis has already forced UN aid teams to close 400 primary health centres across the country so far.

His warning echoes dire announcements of drastic cost-cutting measures in response to chronic – and now acute – funding shortfalls, including an end to selected aid programmes by numerous UN relief agencies. These include the World Food Programme (WFP), the World Health Organization (WHO), the UN Children’s Fund (UNICEF), the UN aid coordination office (OCHA), the UN refugee agency (UNHCR) and UNAIDS.

Life-or-death call

Back in Afghanistan, the reality of funding cuts continues to play out in its hospitals “where you can see doctors making the most horrific decisions about which lives to save and which lives not to save”, Mr. Fletcher said at Mirwais Regional Hospital.

The lack of investment in aid relief has also affected female Afghan health workers whose salaries are being cut by up to two-thirds, Mr. Fletcher continued. The plight of women in the country is well documented and has been condemned by the international community, having deteriorated following numerous prohibitive edicts issued by the de facto authorities who overran Kabul in 2021.

As part of his official visit to Afghanistan, Mr. Fletcher met de facto provincial governor Mullah Shirin Akhund to discuss the need to address Afghanistan’s humanitarian crisis. It comes after more than four decades of conflict that have left almost half the population – some 22.9 million people – needing humanitarian assistance to survive.

Women’s key role

In earlier talks during his official visit, Mr. Fletcher stressed that development was not possible without girls’ education and their full participation in the country’s economy.

Amid soaring malnutrition, a lack of basic services and dire economic forecasts, Afghanistan has few resources to cope with the arrival of a growing number of Afghan refugees sent back by neighbouring countries including Pakistan and Iran.

The scale of the pushbacks is enormous, with more than 250,000 Afghans returned in April alone, including 96,000 who were forcibly deported. On Tuesday, the UN refugee agency, UNHCR, voiced particular alarm over the fate of women and girls, who face increasing repression under Taliban rule.

While in Kandahar, Mr. Fletcher also visited a reception centre where the UN and humanitarian partners provide support, including health check-ups and cash. He said that the closure of hundreds of health facilities in the region had denied more than three million people access to primary care.

OpenAI’s $6.6 Billion Funding Boosts Future Tech Trajectory Avenues Despite Challenges

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OpenAI has shattered records by securing a monumental $6.6 billion in funding, a move that could elevate its valuation to an eye-popping $157 billion. This latest round, fueled by a diverse group of investors, positions the AI powerhouse at the forefront of global tech innovation despite undergoing significant internal shifts.

Investor Confidence Amidst Executive Changes

The timing of this funding round is noteworthy, as it comes during a period of organizational restructuring and leadership changes. Notably, the sudden departure of Chief Technology Officer Mira Murati has not dampened investor enthusiasm.

In fact, investor confidence remains robust, with heavyweights such as Thrive Capital, Khosla Ventures, and Microsoft doubling down on their backing. Microsoft’s ongoing support further strengthens its partnership with OpenAI, while Nvidia’s entry as a new investor signals its increasing stake in the future of AI.

The $6.6 billion was raised through convertible notes, with conversion to equity contingent on a structural overhaul. This transformation would shift OpenAI from its original non-profit framework to a for-profit entity, eliminating the cap on investor returns and marking a significant departure from its foundational principles.

Despite these shifts, the appeal of OpenAI’s vision—pioneering artificial general intelligence (AGI)—keeps investors bullish.

Financial Trajectory and Strategic Goals

OpenAI’s financial projections offer insight into why investor confidence remains high. The company anticipates generating $3.6 billion in revenue this year, with expectations of a sharp leap to $11.6 billion in 2025.

While the company currently faces operating losses exceeding $5 billion, these ambitious growth targets suggest that investors are betting on a long-term payoff as OpenAI continues to monetize its technological innovations.

To add further momentum, Thrive Capital has negotiated an additional $1 billion option for 2025, should OpenAI meet its revenue milestones, signaling even more future investment potential.

A Global Investor Lineup

A diverse set of global investors has further bolstered OpenAI’s financial position. SoftBank, Fidelity, and Abu Dhabi’s MGX are all contributing to the company’s future growth. Additionally, OpenAI plans to launch a tender offer to allow employees to sell their shares—an internal move that could increase liquidity, following similar initiatives earlier this year when employees sold shares at an $86 billion valuation.

Apple, a notable tech giant, opted out of this funding round despite early talks. The reasons behind its decision remain unclear, but its absence stands in contrast to the enthusiasm from other tech heavyweights.

Long-Term Vision: AGI and Commercialization

OpenAI’s long-term ambitions center on developing AGI, a form of artificial intelligence that would surpass human cognitive abilities. As the company edges closer to this goal, it is simultaneously scaling its revenue through commercialization, with its signature product, ChatGPT, now boasting 250 million weekly active users. OpenAI’s rapid rise in both valuation—from $14 billion in 2021 to a projected $157 billion—and revenue has outstripped even the most optimistic forecasts.

The next few years will be pivotal as OpenAI navigates its path to profitability while maintaining its bold pursuit of AGI. This dual strategy has resonated with investors, who view the company as a cornerstone of the future AI landscape, capable of reshaping industries from healthcare to finance.

A High-Stakes Future?

OpenAI’s record-breaking funding round marks a significant chapter in its meteoric rise. While internal restructuring and personnel changes raise questions, they have not shaken investor confidence. The substantial capital injection highlights faith in the company’s vision and its ability to lead the AI revolution.

As OpenAI marches toward its ultimate goal of AGI and balances commercialization with groundbreaking research, all eyes will be on how it leverages its newfound funding to secure its place as a transformative force in global technology. The stakes are higher than ever, and OpenAI’s next steps could shape the future of artificial intelligence for years to come.

Twitter India rival Koo lays off 40 employees

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Twitter rival Koo has laid off at least 40 people in India to prune redundant staff as per its current business requirements, hinting at another failure in overcrowded social media platforms. Currently, WhatsApp and Twitter are the two laeding social platforms in India.

The development was reported by news portal Inc42, which said that Koo CEO Aprameya Radhakrishna is currently abroad, seeking a fresh round of funding. The platform is seeking rapid growth as it plans expansion into other Indian languages soon.

“We recently attained a major milestone of 45 million downloads, growing 10x in the last 2 months. The growth that we are witnessing in our business is reflected in our employee strength of 350+ people strong,” said a spokesperson, as reported by IANS.

Koo, which is aiming to reach the 100 million-download mark, said that it wants to diversify recruitment of machine learning teams.

“Our workforce is streamlined to ensure it is aligned to the current business requirements. As a people-first company, we appreciate the talent and contributions of each of our associates,” the spokesperson added.

Launched in March 2020, Koo is currently available in 10 languages — Hindi, Marathi, Gujarati, Punjabi, Kannada, Tamil, Telugu, Assamese, Bengali and English. So far, the platform has over 45 million downloads but actively leveraged by 7,000 people from across the spectrum.

In February this year, Koo raised nearly $10 million in two different trances from investors, including Capsier Venture Partner, Ravi Modi Family Trust, Ashneer Grover, FBC Venture Partners, and Adventz Finance. Earlier, Koo raised its Series B funding from Tiger Global, Accel Partners, and Blume Ventures.

Team Indus gears up for second chance at Lunar XPRIZE

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India’s first private sector space agency Team Indus is gearing up for the XPRIZE lunar launch giving final touches to its stalled latest mini rover meant for lunar landing.

Since Team Indus failed to raise funds for ISRO-backed PSLV launch, it could not meet the deadline set by Google as of March 31, 2018. Eventually, Google withdrew the prize money of $30 million and called it off.

Now that XPRIZE, which had successfully launched similar scientific missions in the past has renewed its mission to undertake the Lunar XPRIZE and Bangalore-based Team Indus emerges with renewed vigour.

Team Indus founder and CEO Rahul Narayan was upbeat. “The Google Lunar XPRIZE served as an excellent early catalyst to get new people, partners and money involved. With the renewed interest in beyond Earth-orbit exploration by multiple large government space agencies, a new Lunar XPRIZE will be a perfectly timed platform with the chances of multiple successful launches being much higher than before,” he said.

Under the terms of Google XPRIZE competition, the space company or its competitors have to make a soft-landing of their lunar rover, which should traverse at least 500 metres and send high-quality images back to the ground control on the earth. However, the new parameters will be re-defined now, said XPRIZE in a statement.

While Team Indus was seen as a sure-shot winner with its progress in designing the lunar rover and displaying it at several space events in India and abroad, the company failed to raise the required funds to pay for ISRO’s PSLV launcher.

Since 2007, Google Lunar XPRIZE teams have raised over $300 million through corporate sponsorships, government contracts and venture capital. As of 2017 January, Team Indus from India, Japan’s HAKUTO, Israel-based SpaceIL, American firms Moon Express and Synergy Moon were selected out of the 33 teams from 17 countries for the $1 million initial prize. However, the failure of any of them to raise next round of funds forced Google to withdraw the $30 million grand prize.

Chanda Gonzales-Mowrer, Senior Director of XPRIZE, said: “These space entrepreneurs are developing long-term business models around lunar transportation and we cannot give up on them now.”

All the Lunar XPRIZE startups are equally enthusiastic to participate in the Lunar XPRIZE competition without a monetary prize but the organisers are hopeful to find a new sponsor to replace elusive Google. Peter H. Diamandis, XPRIZE founder and executive chairman said, “XPRIZE is now looking for our next visionary Title Sponsor who wants to put their logo on these teams and on the lunar surface.”

Bob Richards, founder & CEO of Moon Express welcomed XPRIZE decision to renew the competition. “While we plan to win this Moon race and are committed to carrying the Lunar XPRIZE logo, the real opportunity is in opening the lunar frontier and the multibillion dollar industry that follows.”

Takeshi Hakamada, founder and CEO of Japan’s space firm iSpace, which has designed HAKUTO, echoed similar views when he said, “We believe a new competition would again elevate our industry to an even higher level, so we eagerly welcome a new Lunar XPRIZE.”

While all eyes are on a new Title Sponsor, whoever pitches in would have the benefit of having their name and branding incorporated into the competition, and in success, on the surface of the Moon, said XPRIZE.

XPRIZE had conducted the $20M NRG COSIA Carbon XPRIZE, the $15M Global Learning XPRIZE, the $10M ANA Avatar XPRIZE, the $7M Shell Ocean Discovery XPRIZE, the $7M Barbara Bush Foundation Adult Literacy XPRIZE, the $5M IBM Watson AI XPRIZE, the $1.75M Water Abundance XPRIZE and the $1M Anu and Naveen Jain Women’s Safety XPRIZE in the past.