US Slashes Health Aid to Zambia — Expert Predicts Budget Crisis
Zambia’s healthcare sector may face significant disruption following the recent $50 million aid cut by the United States government, a move that economic analyst Kelvin Chisanga warns could destabilize critical national systems, including the National Health Insurance Scheme (NHIMA).
Mr. Chisanga, a respected voice in Zambia’s economic policy circles, expressed concern that the aid withdrawal comes at a time when the country is under severe fiscal strain due to ongoing debt restructuring efforts and a narrowing revenue base.
“This will re-align Zambia’s healthcare management systems and exert pressure on the NHIMA program,” he said.
He further cautioned that the national treasury, already stretched thin, may struggle to absorb the funding gap.
“With our current tax base, it will be extremely difficult to close budget deficits while meeting our macroeconomic policy objectives. We are likely to face serious shortfalls this year following the removal of several external funding lines,” Chisanga noted.
The health sector, which has recently shown signs of improvement through infrastructure upgrades and recruitment of medical personnel, now risks losing momentum. “Our progress in reducing terminal illnesses was largely supported by donor funding, particularly from USAID. The absence of these funds will create a vacuum that we have not prepared for,” he explained.
Mr. Chisanga emphasized the importance of donor support in Zambia’s public health funding model, stating that while external assistance has helped the national budget function more effectively, the country has failed to build alternative buffers to sustain growing sectoral demands.
