Aid groups and MPs have raised concerns over the move to prioritise defence spending over aid.
The deal came as part of the president's state visit to the UK - the first by a west African leader in 37 years.
President Idris Mahamat Déby orders the military to be on high alert and a "total closure" of the border.
Caf executive committee member Augustin Senghor says the decision to strip Senegal of the 2025 Afcon title is "unacceptable, abject and we have to denounce it".
The conflict has persisted despite a peace deal signed by DR Congo and Rwanda in December.
Residents of some areas have been without mains water for weeks.
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