Siphakeme .Mnindwa
PRESIDENT Donald Trump’s decision to withdraw the United States from the World Health Organisation (WHO) has significant implications for global health, while his executive order banning new US foreign aid spending and the subsequent “stop-work order” on January 24 have far-reaching consequences, particularly for countries reliant on US aid for critical health programmes.
As we report in our business section today, FBC Securities Private Limited, a stockbroker listed on the Zimbabwe Stock Exchange, has called on the Government to take decisive measures in response to the US foreign aid freeze, cautioning that the situation could destabilise key sectors, exacerbate exchange rate volatility and heighten inflationary pressures.
The clarion call by FBC Securities is the cry of the entire Global South. Many US-funded aid programmes have begun firing staff and shutting down operations. This sudden halt affects a wide range of initiatives, from healthcare to education and infrastructure development.
Locally, Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, has announced that the revenue generated from the sugar tax and the newly-introduced fast food tax will be specifically allocated to support the health sector.
The US was the largest contributor to WHO, providing about 22 percent of its mandatory contributions. This withdrawal is expected to undermine international public health efforts in several ways.
Because WHO relies heavily on contributions from member states to fund its operations, the US withdrawal creates a substantial funding gap, potentially reducing the organisation’s ability to respond to global health crises, conduct research and support health initiatives worldwide.
WHO plays a crucial role in co-ordinating international responses to pandemics and without US support, the organisation’s capacity to track disease outbreaks and mobilise resources may be compromised, making it harder to combat future pandemics.
The US’s withdrawal from the WHO could weaken international co-operation and leadership in addressing health challenges, potentially leading to fragmented and less effective responses.
The freeze on funding to Pepfar threatens to disrupt the supply of antiretroviral drugs (ARVs) and resources for HIV, tuberculosis (TB) and malaria programmes in countries like Zimbabwe. Pepfar has been instrumental in providing life-saving treatments and support to millions of people living with HIV/Aids.
Zimbabwe, which has one of the highest HIV prevalence rates in the world, relies heavily on Pepfar for ARV supplies. The funding freeze could lead to shortages of these essential drugs, jeopardising the health and lives of those dependent on them.
The halt in US foreign aid affects not only HIV/Aids programmes but also efforts to combat TB and malaria. These diseases require sustained funding and resources to manage and control. Any disruption in support can lead to increased morbidity and mortality.
Health crises have broader economic and social impacts. Disruptions in health programmes can strain healthcare systems, increase healthcare costs and reduce productivity, further exacerbating poverty and inequality in affected regions.
As we have tried to illustrate, the US withdrawal from WHO and the freeze on foreign aid spending pose significant challenges to global health efforts. These actions undermine international cooperation, reduce funding for critical health programmes, and threaten the well-being of millions of people, particularly in vulnerable regions.
We concur with FBC Securities that bold and strategic reforms are essential to guide the country toward financial stability and sustainable growth.
Online Reporter