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South Africa Budgets More for HIV/AIDS Treatment

April 11, 2005

The latest South African government budget reportedly envisages a significant increase in spending to combat HIV/AIDS, with funding for antiretroviral (ARV) drugs expected to reach ZAR3bn (US$494.59mn) over the next three years. Indeed, the government claims efforts against the disease are central to this year's 11.4% health spending rise to ZAR9.83bn (US$1.53bn).

The government has already conducted a major tender for ARV drugs, awarding supply contracts worth a total of ZAR3.4bn (US$578.61mn) to seven drugmakers, with local generics producer Aspen Pharmacare taking the lion's share of the procurement deals. The company is to produce roughly nine products for the programme under a two-year contract.

Nevertheless, despite rising expenditure on fighting the disease and expanding conventional healthcare coverage, it remains to be seen whether this year's budget measures will feed through into a genuine improvement in HIV/AIDS mortality rates. Further, as the government's new pricing plans remain in legal deadlock, it is unclear whether the authorities will be able to extend reimbursable treatment to poorer segments of the population as quickly as hoped.