South Africa's Financial Struggle: Impact of US Aid Cuts on HIV Programs

South Africa is grappling with a $430 million deficit following the Trump administration's cuts to foreign aid, according to Finance Minister Enoch Godongwana. The minister addressed Parliament, unveiling a revised budget absent of tax hikes previously met with public opposition.

The finance minister emphasized the financial limitations that hinder compensating for the aid cuts threatening South Africa's comprehensive HIV treatment network, the largest globally. This revelation comes as President Cyril Ramaphosa prepares to meet with U.S. President Donald Trump.

Godongwana highlighted the new budget's focus on funding viable programs, deferring others until resources improve. He cautioned about further financial challenges, particularly with PEPFAR funding withdrawal, vital for the country's expansive HIV care provision. The budget notably reduces health allocations from 28.9 billion rand to 20.7 billion rand, affecting staffing and medical supply stability.

(With inputs from agencies.)