That's the required amount, approximately $2.82 billion, to address the current US funding deficit.
The national health department in South Africa is sounding the alarm bells, as they've calculated a staggering R2.82bn is required to continue providing HIV and TB services following theUS President Donald Trump's administration slashing more than half of US government support to the country in February.
The financial year in question runs from April 1 to March 31. According to Nicholas Crisp, the department's deputy director-general for National Health Insurance (NHI), without replenishing these funds, they won't be able to sustain the country's HIV program.
The stakes couldn’t be higher: up to 295,000 new HIV infections and a 38% increase in Aids-related deaths are projected over the next four years, as per a Wits modelling study. These statistics are on top of the estimated 130,000 annual new HIV infections.
The funding cut left a significant gap, with Pepfar supporting South Africa's fight against HIV and TB for the current year to the tune of $439,537,828, which equates to approximately R8.3bn at current exchange rates. The funds were primarily sent to nonprofit organizations, private companies, public institutions, and various health departments.
Most of the distributed funds (57%) were channeled through USAID, with 43% passing through the CDC. Between them, there were 24,264 employees across 39 prime partners and 150 "implementing partners" who handled the groundwork. The majority of these workers were data capturers, lay counselors, professional nurses, middle managers, and youth workers.
The projects funded via USAID came to a grinding halt on February 26, as part of a global foreign aid cut by the Trump administration. Only projects funded through the CDC have been allowed to continue with their full budgets but they're only covered until September 30.
The situation leaves the future of funding uncertain after September 30. Jirair Ratevosian, a former Pepfar staff head now an associate research scientist at Yale University, explains that the proceedings will depend on the vote by the US Congress on the budget submitted by Trump.
Regardless of the outcome, the proposed budget for Pepfar for the 2026 financial year is projected to be $2.9bn, though this represents a 40% reduction from the current budget, according to Ratevosian. This reduction means that the majority of programs will likely face significant cuts.
The Trump administration initiated a 90-day review of foreign aid on January 20, which is still ongoing. The outcome of this review will need to be announced to set the direction for foreign aid moving forward. Amid this uncertainty, local CDC-funded organizations have expressed frustration, as they lack clarity regarding the future of their operations.
- The financial predicament in South Africa's health sector is alarming as companies need to find R2.82bn to sustain HIV and TB services following the US administration's budget cuts.
- The national health department is warning that without these funds, they won't be able to uphold the country's HIV program.
- The stakes are high, with projections of up to 295,000 new HIV infections and a 38% increase in Aids-related deaths over the next four years.
- Pepfar, which supported South Africa's fight against HIV and TB for the current year, provided $439,537,828, equivalent to approximately R8.3bn.
- These funds were sent to various entities, including nonprofit organizations, private companies, public institutions, and health departments.
- Most of the funds were managed by USAID, with the CDC handling the remaining portion.
- A total of 24,264 employees across prime and implementing partners were involved in the groundwork.
- The projects funded through USAID were halted on February 26 as part of a global foreign aid cut by the Trump administration.
- Projects funded through the CDC were allowed to continue but only until September 31.
- The future of funding beyond September 30 remains uncertain due to the ongoing vote by the US Congress on the budget.
- Jirair Ratevosian, a former Pepfar staff head, predicts a 40% reduction in the proposed 2026 budget for Pepfar, leading to significant cuts in most programs.
- The 90-day foreign aid review initiated by the Trump administration is still ongoing, with its outcome necessary to set the direction for foreign aid moving forward.
- Local CDC-funded organizations have expressed frustration due to the lack of clarity regarding the future of their operations amid this uncertainty.
- Chronic diseases, such as cancer and diabetes, already pose a significant threat to South Africa's health and wellness, and these budget cuts exacerbate the problem.
- Respiratory conditions, digestive health, eye health, hearing, and skin conditions are among the other medical-conditions that could be affected by the funding shortage.
- Mental health, nutrition, and cardiovascular health are equally crucial aspects of health and are at risk due to the reduced budget.
- Fitness and exercise, a vital component of health and wellness, may become unaffordable for many South Africans as personal finance takes a hit.
- The budget cuts could impact the future of science, medical-research, and technology, potentially leading to delays in discovering new treatments for chronic diseases and improving medical-technology.
- The travel, education, and self-development sectors could also suffer as a result of the reduced financial support.
- As the budget shortage impacts various aspects of life, from food and drink to career development and even leisure activities like casino and gambling, South Africans must prepare for a shift in their lifestyle and personal finances.

