BUDGET 2025:  South Africa's Dependency on Foreign Aid: All Eyes on Gondongwana’s Defining Budget

--:--
GUEST: Natashia Soopal, Senior Executive: Ethics Standards and Public Sector, South African Institute of Chartered Accountants.

As South Africa prepares for the Minister of Finance, Mr Enoch Godongwana’s upcoming budget speech, the nation faces a crucial question. What kind of budget will we hear, and how will it shape the future? This isn’t just another financial update—it’s a pivotal moment, especially in the wake of US President Donald Trump’s recent announcement to cut funding to South Africa.

This raises fresh concerns about economic stability in an already struggling economy and further straining diplomatic relations - should this serve as a wakeup call for us?

Trump’s actions highlight the country’s precarious dependency on foreign aid, particularly in areas like HIV/AIDS treatment. In 2023, the US provided about $440 million through PEPFAR, covering 17% of South Africa’s HIV/AIDS programme. The potential loss of this funding would devastate healthcare delivery, threatening clinics, nursing staff, and the distribution of life-saving medications.

Even more concerning is the R46.25 billion in irregular healthcare spending over the past five years, alongside R5.55 billion in unauthorised expenditures. These financial inefficiencies not only compromise the already struggling healthcare system but raise questions about the long-term viability of crucial programmes should foreign aid be withdrawn.
10 Feb 1PM English South Africa Business News · Investing

Other recent episodes

The Hidden Costs of Estate Planning Every Family Should Know

GUEST - Nokuzola Cossie, Head of Fiduciary at Standard Bank Wealth and Investment Have you ever wondered what would happen to your assets if something unexpected were to happen? It’s not the most cheerful thought, but it’s an important one. Estate planning might sound like something only the very wealthy…
22 May 2PM 12 min

How South Africa’s just energy transition is being threatened by corporate interests

GUEST – Tracey Davies, executive director of Just Share For this conversation we turn the spotlight on a new and explosive report by non-profit organisation Just Share, titled “The Obstruction Playbook: How corporate lobbying threatens South Africa’s Just Transition.” At a time when the urgency of climate action is clearer…
22 May 2PM 12 min