The decision has drawn attention because PEPFAR has played a major role in supporting HIV/AIDS prevention, treatment, and healthcare programmes in South Africa for many years.
According to reports, the U.S. State Department said the move followed concerns that South Africa had not adequately addressed issues raised by Washington, including economic policies, land reforms, and matters relating to the protection of minority communities.
U.S. officials criticised South Africa’s Black Economic Empowerment policies, arguing that they do not provide exemptions for American companies operating in the country.
Washington also raised concerns over controversial political statements and chants that it described as racially sensitive, as well as South Africa’s Expropriation Act of 2024, which it said could create uncertainty over property rights and compensation.
The United States further called on South African authorities to do more to address rural crime and improve security in farming communities.
A State Department spokesperson defended the decision, stating that South Africa is a middle-income country with the capacity to strengthen and finance its own healthcare programmes.
President Trump has previously accused South African authorities of failing to adequately protect white farmers and has repeatedly raised concerns about alleged discrimination against the white minority population.
During a meeting with South African President Cyril Ramaphosa at the White House in May 2025, Trump reportedly presented materials related to claims of attacks against white farmers and criticised certain political expressions in the country.
The termination of PEPFAR funding is expected to generate further debate, as health experts and policymakers consider the potential impact on HIV/AIDS programmes and healthcare services in South Africa.
The South African government has yet to provide a detailed response to the latest announcement.
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