South African Finance Minister Enoch Godongwana has called for increased taxation on alcohol and tobacco as part of a broader strategy to boost domestic revenue amid a significant decline in foreign health aid to Africa. Speaking at an African Union event in Johannesburg, he highlighted the continent’s pressing health sector challenges and the urgent need for a more resilient financing model.
Godongwana emphasised that Africa must take control of its health financing and reduce reliance on external funding, which has become increasingly unreliable. He pointed to recent cuts in foreign aid from the US and Europe, which have shifted their focus to domestic needs, including heightened defense spending.
Despite these challenges, Godongwana sees an opportunity for Africa to leverage its rich resources, particularly critical minerals, in a global landscape where competition from China and other nations is intensifying. He asserted that Africa holds the potential solutions to many global challenges but needs to adopt a new approach to development as the era of aid is coming to an end.
He urged African nations to embrace sharper investment discipline and to foster new principles of global cooperation, aiming for more effective financing for investment and economic transformation. As a member of the BRICS bloc, which includes influential countries like China and India, South Africa is positioned to benefit from a multipolar world that could allow for new forms of development and trade partnerships.
Godongwana concluded by expressing optimism about ongoing efforts to forge innovative multilateral cooperation and development partnerships that are being established in real time.