26 Aug 2025, Tue

ECONOMIST CALLS FOR RESOURCE RE-ALIGNMENTS AMID US$50 MILLION HEALTH SECTOR AID CUT

By Cecilia Chiluba

An Economist says the $50 million cut by the US government calls for resource re-alignments because the move will destabilize Zambia’s healthcare management system.

Yesterday, the United States through its Ambassador to Zambia Michael Gonzales, announced that it had cut K1.4 billion equivalent to US$50 million in annual aid provided to Zambia for medications and medical supplies, citing failure by government to stop the systematic theft of donated drugs.

Critical drugs that have been affected include HIV, malaria, and tuberculosis (TB).

Commenting on the development, Kelvin Chisanga said the aid cut will further re-align the national health insurance scheme as administered by NHIMA.

Mr. Chisanga noted that Zambia has recorded low numbers of terminal diseases under the strong support of USAID funds and many others, therefore , it is important to highlight the aspects of donor support which has seen the national budget functioned well.

“However, with narrow budget revenue from our current tax table, it will be extremely difficult to see budget deficits close up in relation to our policy objectives based on the macroeconomic focus, and it appears we are likely to face serious deficits in this year following removal of several external funding,” Mr. Chisanga stated.

He observed that Zambia’s health sector has started showing some levels of improvements owing to the attention currently being given on infrastructure maintenance and recruitment of critical personnel mostly doctors and nurses.

And in his national address yesterday, Health Minister Dr. Elijah Muchima said the theft of medicines reflects a deep-rooted problem that took hold long before the current administration assumed office in August 2021, stemming from systemic weaknesses in oversight and supply chain management, under previous governments.

“To address this, the Government of Zambia has implemented robust remedial measures to protect medicines, ensuring that they reach the patients who need them most. You may wish to note that the President of Zambia, Mr. Hakainde Hichilema commissioned a comprehensive independent forensic audit of the entire medicines supply chain immediately the concerns were raised. “

“This audit was commissioned by the Auditor General’s Office and conducted by Pricewater House Coopers. The interim report was shared with stakeholders, including co-operating partners, at State House at the invitation of the President,” Dr. Muchima said.

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