South Africa says its budget can’t cover for the deep US cuts in foreign aid
JOHANNESBURG — JOHANNESBURG (AP) — South Africa is facing a financial crisis due to the $430 million shortfall caused by the Trump administration’s cuts in foreign aid, according to the country’s finance minister.
During a Parliament session presenting an updated budget, Finance Minister Enoch Godongwana revealed that the country does not have enough funds to make up for the cuts, which have put the support system for one of the world’s largest HIV-positive populations at risk.
The budget update did not include the controversial value-added tax increases that had caused public outcry and disagreements among ruling coalition parties.
The Trump administration’s dismantling of USAID earlier this year resulted in the loss of $436 million in annual funding for HIV treatment and prevention in South Africa, threatening thousands of health care jobs and the program itself.
Godongwana emphasized the need to prioritize financial resources for feasible programs and to defer others until the country’s resources allow.
More challenges may arise in the future, with potential funding pressures such as the withdrawal of PEPFAR funding looming.
Globally, PEPFAR has been instrumental in saving millions of lives since its inception in 2003, according to the U.N. AIDS agency.
South Africa’s current budget allocates a lower amount for health compared to the previous budget, with a focus on protecting health positions, hiring doctors, and addressing medical supply shortages.
