Motsoaledi urges innovative health financing at G20 amid US aid cuts

Minister of Health, Dr Aaron Motsoaledi.

Minister of Health, Dr Aaron Motsoaledi.

Image by: Jairus Mmutle/GCIS

Published Mar 27, 2025

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AS the continent grapples with funding shortfalls due to the suspension of aid from the United States, Health Minister Dr Aaron Motsoaledi during his keynote address at the G20 Health Working Group Meeting, called for global health partnerships to explore innovative financing mechanisms, to bridge the funding gap. 

The three-day meeting which kicked off in KZN on Wednesday takes place under the theme “Accelerate Health Equity, Solidarity and Universal Coverage” to create a platform for bilateral and multilateral engagements on various critical issues including health systems strengthening and promoting equitable access to health services. 

Motsoaledi last week told members of parliament that no South African would be deprived of access to anti-retroviral (ARV) drugs due to the US-driven Presidential Emergency Plan for AIDS Relief (Pepfar) funding cuts. 

He said he had called several workshops and meetings and issued a circular, advising provinces to redeploy trained health officials to fill gaps left by Pepfar.

Addressing G20 members on Wednesday, he further called for international health partnerships to explore financing mechanisms that could bridge the funding gap. 

“Our work is inextricably linked to the Sustainable Development Goals (SDGs), particularly SDG 3, which focuses on ensuring healthy lives and promoting well-being for all. We remain now, with just five years before the 2030 deadline, a stark reminder of the urgency required to fulfil the 2030 Agenda for Sustainable Development. This agenda calls for a world where no one is left behind, and with such limited time, our actions must be accelerated and impactful and sustainable.

“The UN High-Level Meetings (HLMs) on Universal Health Coverage in 2019 and 2023 were pivotal moments in reaffirming our commitment to UHC. The 2019 HLM emphasized the need for strong primary health care systems and sustainable financing. The 2023 HLM further reinforced the urgency of addressing health inequities and ensuring financial protection, especially in the context of global crises. However, the reality on the ground is deeply concerning," Motsoaledi said. 

Citing data from the World Health Organization (WHO), he said there had been "a significant regression" in Universal Health Coverage (UHC) indices.

"Specifically, UHC service coverage, measured by indicator 3.8.2, has seen a decline, with global averages stalling and, in some regions, even regressing from previous levels. Similarly, financial protection, measured by indicator 3.8.1, has also been compromised, with millions more facing catastrophic health expenditures,” Motsoaledi added.

The minister maintained that investment in accessible, affordable, and comprehensive primary health care for all was crucial but these goals were at risk amid funding issues. 

“A strong primary health care system is the cornerstone of universal health coverage. It's where prevention meets early intervention, where communities are empowered, and where the social determinants of health need to be addressed. We must invest in accessible, affordable, and comprehensive primary health care for all.

“However, our ambitions are threatened by the harsh realities of global economic constraints. We are witnessing a concerning trend: declining global health budgets simultaneously with rising costs. This is particularly acute in the Global South, where many nations are burdened by unsustainable debt servicing. These debt repayments are effectively cannibalising vital health budgets, leaving millions without access to essential health services.

"We must acknowledge that spending on health is not a cost, but an investment. A healthy population is a productive population," the minister said.

"We need innovative financing mechanisms that prioritise health, even in challenging economic times. In 2009 the G8 already coined the slogan that we 'need more money for health and more health for the money that we spend'. We must advocate for greater allocation of national budgets to health, ensuring efficient and equitable spending.

"For many nations, debt relief is not a luxury, but a necessity. We must explore mechanisms that allow countries to reallocate resources towards health. We need to strengthen global health partnerships and explore innovative financing mechanisms, to bridge the funding gap. We must ensure that every dollar spent on health is used effectively and transparently.

“Crucially, we implore all G20 members to champion increased public financing of health systems. This is not merely a budgetary issue; it is a fundamental investment in our collective future.”

Cape Times

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