National Treasury has allocated R753 million to the Department of Health -- under Section 16 of the Public Finance Management Act (PFMA) -- to help bridge the shortfall caused by the United States’ decision to cut HIV and tuberculosis (TB) grants.

Health Minister Dr Aaron Motsoaledi made the announcement on Wednesday during the Budget Vote presentation in Parliament.

According to the Minister, R590 million of the total of R753 million will be allocated for service delivery in the provinces, distributed through the comprehensive HIV/Aids component of the District Health Programme Grant.

In addition, R32.1 million will be given to the National Department of Health to support the Central Chronic Medicine Dispensing and Distribution (CCMDD) Programme, as well as pharmaceutical supply chain management.

Furthermore, R132 million will be transferred to the South African Medical Research Council (SAMRC) to enhance health research across the country.

“This is how it is going to work: the Bill and Melinda Gates Foundation and the Wellcome Trust have pledged R100 million each. 

“They put a condition that each R100 million they contribute be matched by R200 million from our own Treasury, and that money be given to researchers. Treasury duly agreed.” 

This means South Africa will receive a total of R600 million allocated to researchers, even though the President’s Emergency Plan for AIDS Relief (PEPFAR) has withdrawn support. 

The United States government’s withdrawal of funding to key health initiatives, including PEPFAR, which was established by former President George W Bush in 2003, led to a loss of R7.9 billion spent on HIV/Aids programmes annually.

“Hence, the Bill and Melinda Gates Foundation and the Wellcome Trust will together immediately release R200 million. On the other hand, the matching R400 million by Treasury will be released over three years, hence the first tranche of R132 million I have mentioned.“

According to the Minister, these funds are meant to address the most urgent needs, with the possibility of additional allocations being considered later.

This week, he stated that the South African Medical Research Council , along with researchers from various institutions and universities, are discussing how they will distribute funds, which will be transferred to the SAMRC.

“We are determined more than ever before to end the scourge of HIV/Aids as a public health threat. Today is a historic day in this regard. As I am speaking to you now, the Global Fund in Geneva is announcing... that it has signed an access agreement with Gilead Sciences to procure lenacapavir,” the Minister said. 

The Minister has referred to lenacapavir, a long-acting injection for HIV prevention, as one of the most significant advancements in HIV prevention in decades. 

This is the first long-acting injectable treatment for pre-exposure prophylaxis (PrEP), administered twice a year. 

According to the Minister, lenacapavir significantly expands the options available for HIV prevention, offering the most choices ever.

“For South Africa, we regard this as a game changer in our fight against HIV/Aids.

“As such, as South Africa, we have agreed to be one of the first countries in the starting blocks for lenacapavir.” 

According to the Minister, the first shipment is expected to arrive in at least one African country by the end of 2025.

“We intend to be such a country, and we have already started putting the plan together. We plan to offer lenacapavir to young women and everyone at risk to stay HIV-free.

“We all know that for far too long, women and girls in our country have carried the greatest burden of this epidemic.” –