GENEVA: The United Nations refugee agency will reduce its budget by nearly one fifth next year due to severe financial constraints despite rising global displacement.
UNHCR plans to operate with $8.5 billion in 2026 compared to $10.2 billion in 2025 according to budget documents published online.
The agency will close its Southern Africa bureau and eliminate nearly 4,000 positions as part of the cost-cutting measures.
A UNHCR spokesperson confirmed that even the reduced budget remains aspirational since the agency has received only half of required funding in recent years.
Major donors including the United States and Western powers have reduced aid contributions while increasing defence spending amid security concerns.
The Geneva-based organization anticipates forcibly displaced and stateless people will reach a new record of 136 million next year.
This figure represents an increase from 129.9 million people in 2024 according to UNHCR projections.
The spokesperson emphasized that funding cuts are already creating greater risks for vulnerable refugee populations worldwide.
Southern Africa operations will transfer to East Africa and West Africa offices effective October first.
This region hosts refugees fleeing conflict in the Democratic Republic of Congo and displacement from the northern Mozambique insurgency.
The Pretoria office currently employs 72 staff members and coordinates operations across 16 countries.
UNHCR spokesperson for Southern Africa Duniya Aslam Khan confirmed reduced funding is already impacting critical assistance programs.
Cash assistance programs have been reduced while healthcare services and education programs face significant cuts.
Food assistance programs have also been affected by the ongoing financial constraints according to agency officials.
The United States has historically been the largest donor to UNHCR which depends heavily on voluntary contributions.
The UN World Food Programme closed its Southern Africa bureau earlier this year citing similar funding challenges. – Reuters
