The closure of the United States Agency for International Development (USAID) in early 2025 has sent shockwaves through South Africa’s non-profit sector, threatening the stability of organizations that have long relied on its funding to address critical social issues.
Read: Three common myths about US Funding cuts to South Africa
South Africa has received over $400 million annually from USAID in recent years. This sum supports initiatives in health, education, and economic development. The abrupt termination of this aid has left non-profit organizations (NPOs) grappling with severe financial uncertainty.
Programs targeting HIV/AIDS, tuberculosis, and maternal health, which have been lifelines for millions, now face immediate disruption. This sudden withdrawal not only jeopardizes years of progress in combating some of the country’s most pressing challenges but also forces NPOs to urgently seek alternative funding sources in an already strained economic landscape, raising questions about their long-term sustainability and the broader impact on vulnerable communitie
USAID Axes funding for HIV/Aids organisations across South Africa and the World
The notices went out overnight on Wednesday, 26 February, leading to consternation among health workers and activists in the HIV/Aids sector as key programmes face the imminent collapse of their services.
“What I’ve seen this morning … is great upset and devastation, because this affects people who have literally put their hearts and minds and imagination and lives into building novel, groundbreaking programmes, which have taken many years and have suddenly just been terminated,” said Mark Heywood, a health and human rights activist with a long history of work in the HIV/Aids sector.
“The axe has effectively fallen, and we have moved from ‘cease work’ suspension notices to actual termination.”
US President’s Emergency Plan for AIDS Relief
Pepfar (the US President’s Emergency Plan for Aids Relief), a global health programme started in 2003, provided South Africa with about $440-million in funding for the US financial year spanning October 2024 to September 2025.
It constituted 17% of South Africa’s R44.4-billion campaign for HIV counselling and testing, according to Health Minister Dr Aaron Motsoaledi.
Pepfar funds are distributed to South African implementing partners by USAID and the Centers for Disease Control and Prevention. About half of the Pepfar-supported programmes in SA receive funding through USAID.
Programs targeting HIV/AIDS, tuberculosis, and maternal health, which have been lifelines for millions, now face immediate disruption. Meanwhile hundreds of NPO staff risk job losses. This sudden withdrawal not only jeopardizes years of progress in combating some of the country’s most pressing challenges but also forces NPOs to urgently seek alternative funding sources in an already strained economic landscape. This raises questions about their long-term sustainability and the broader impact on vulnerable communities.
Termination of Pepfar – Funded Programs
USAID has axed funding for HIV/Aids organisations across South Africa — the United States Agency for International Development (USAID) has issued notices to Pepfar-funded HIV organisations terminating their funding for good.
The notices went out overnight on Wednesday, 26 February. This lead to consternation among health workers and activists in the HIV/Aids sector as key programmes face the imminent collapse of their services.
“What I’ve seen this morning … is great upset and devastation, because this affects people who have literally put their hearts and minds and imagination and lives into building novel, groundbreaking programmes, which have taken many years and have suddenly just been terminated,” said Mark Heywood, a health and human rights activist with a long history of work in the HIV/Aids sector.
“The axe has effectively fallen, and we have moved from ‘cease work’ suspension notices to actual termination.”
US President’s Emergency Plan for AIDS Relief
Pepfar funds are distributed to South African implementing partners by USAID and the Centers for Disease Control and Prevention. About half of the Pepfar-supported programmes in SA receive funding through USAID.
Court challenges
Trump’s executive orders have seen him make sweeping changes to US policy, resulting in several lawsuits and pushback from democratic legislators. His administration’s efforts to slash foreign aid funding through USAID and state departments have not gone unchallenged.
- Pepfar-funded HIV organisations in South Africa, who received their funds through the United States Agency for International Development, USAID, woke up to letters that were sent overnight telling them their grants have been ended — permanently.
- Recipients received telling them that “your award is not aligned with Agency priorities” and that “continuing this program is not in the national interest”. The order is part of the terminations of 5 800 USAID-funded projects worldwide.
- The letters instruct projects to “immediately cease all activities, terminate all sub-awards and contracts, and avoid incurring any additional obligations chargeable to the award beyond those unavoidable costs associated with this termination notice”.
- Some organisations received emails, with attached letters, which were signed off with “thank you for partnering with USAID and God bless America.”
The Way Forward
At present, there is no credible way forward. The future of the United States Agency for International Development (USAID) is uncertain, with current plans indicating a significant reduction or potential shutdown. According to Secretary of State Rubio,83% of USAID programs would be canceled, with only about 1,000 programs remaining under State Department administration. This move is part of a broader effort to align foreign aid with U.S. national interests.
Back in South Africa – Get Tested
There are 3.4-million HIV positive people on antiretroviral (ARV) treatment in South Africa today, according to the government.
To date, clinics still have stocks of ARVs and other necessary medication. So if you suspect you may have HIV, get a free test.
HIV and Aids: How to get treatment and support in South Africa