CAPE TOWN – Finance Minister Enoch Godongwana, during the 2024 Budget Speech, declared that the health sector is poised to receive an R848 billion allocation over the Medium Term Expenditure Framework, with R1 billion earmarked specifically for the National Health Insurance (NHI) initiative. This funding underscores the government’s commitment to advancing healthcare reforms and ensuring an improved public healthcare system across South Africa.
According to South African Government News Agency, The allocations are designated for various purposes, including R11.6 billion to settle the 2023 wage agreement, R27.3 billion for infrastructure development, and R1.4 billion to support the NHI grant over the upcoming years. The NHI funding aims to address several critical system-strengthening activities essential for enhancing healthcare services. These activities encompass the development of a national health information system, upgrading health facilities, strengthening management at facility and district levels, and establishing semi-autonomous statuses for certain hospitals.
Despite facing a slower budget growth rate than inflation due to R23.7 billion in baseline reductions over the medium term, the health sector is prioritizing efficiency and the management of commuted overtime. Efforts are also being made to intensify preventative care measures and recover services disrupted by the COVID-19 pandemic. Additionally, the sector will focus on expanding tertiary services, including oncology, through earmarked funds.