Finance Minister Enoch Godongwana is moving to replace health grants withdrawn by the Trump administration, which threatened to cripple research into HIV/Aids.
In the Budget Review, released as he prepared to address Parliament, Godongwana announced a reallocation of funds within the health sector to support emerging policy priorities.
The move reflects growing pressure on the state to safeguard critical programmes amid shifting global funding patterns and domestic budget constraints.
Plugging grant support gap
A total of R410-million will be reprioritised from the Department of Health to the South African Medical Research Council (SAMRC). The funding is intended to replace grant support that was withdrawn by the US last year.
The US decision to partially withdraw the President’s Emergency Plan for AIDS Relief (PEPFAR) funding to South Africa followed political tensions between the two countries, leaving a significant gap in financing and crippling employment.
Government said the R410-million reallocation forms part of a co-funding arrangement with global donors to ensure the continuity of essential research into HIV/AIDS.
The intervention is designed to prevent disruption to programmes that underpin treatment strategies, prevention efforts and long-term health planning.
Staff retention
In a further effort to strengthen oversight and quality within the public health system, Treasury has reprioritised R24-million over the medium-term expenditure framework (MTEF) to the Office of Health Standards Compliance.
The additional funding will help retain staff on a permanent basis, including contracted inspectors, and support the growing number of health facility inspections conducted each year.
“These reallocations are mainly funded through the implementation of National Treasury’s targeted and responsible savings initiative, where savings were identified in goods and services in the Administration, and HIV/AIDS, Tuberculosis and Maternal, Child and Women’s Health Programmes,” said Godongwana.
The figures presented in the review underline the scale of South Africa’s public health commitment.
HIV response
The total number of clients remaining on antiretroviral treatment is estimated at around
6-million for the 2025/26 financial year, up from 5.5-million in the previous year. Treasury is targeting 6.4-million people on treatment over the next three years, reflecting continued expansion of the country’s HIV response.
Overall health spending is expected to increase by 4.2% to R311.3-billion, signalling steady, if measured, growth in allocations despite broader fiscal pressures.
Infrastructure also features in the health reprioritisation. Tygerberg and Klipfontein regional hospitals have received an additional R176.7-million through the health facility revitalisation grant, allocated via the budget facility for infrastructure. The funding is aimed at improving capacity and service delivery in high-demand areas.
