In his medium-term budget policy statement (MTBPS), Finance Minister Enoch Godongwana attributed South Africa’s healthcare staffing shortages to the provinces’ failure to ensure that the Treasury’s allocated funds reached frontline healthcare workers.

According to Godongwana, South Africa’s fiscal system allows provinces flexibility in managing funds under the provincial equitable share, which has led to disparities in budget allocations and impacted staffing levels in essential services like healthcare.

Provinces struggle despite additional funding for wages

The Treasury addressed budget constraints by increasing provincial funding in the February budget to support employment in frontline services. However, only part of this additional allocation has gone toward compensating health workers, creating a “self-inflicted” crisis, as Minister Godongwana described it.

Many provincial health departments remain understaffed, with vacancy rates ranging from 22.4% for doctors in the Free State to 5.5% in the Western Cape. Health Minister Aaron Motsoaledi has said that these staffing shortages impact service delivery, highlighting the need for efficient fund allocation.

Treasury’s limited support and ongoing fiscal pressures

The latest medium-term budget policy statement (MTBPS) left provincial departments and healthcare unions without additional relief for health sector staffing costs, frustrating provincial healthcare providers grappling with historical budgetary pressures.

Although consolidated health expenditure is set to grow at 4.3% over the medium term, the gap between funding and staffing needs continues to grow.

Long-term solutions under review

To address these staffing and financial challenges, the government is re-evaluating its health sector human resource policies, such as occupation-specific allowances, commuted overtime, and rural incentives, which have increased public health costs. This review aims to balance budget constraints with essential staffing needs to improve service delivery in South Africa’s public health sector.

With the review of human resources policies, South Africa’s government seeks more sustainable solutions to ensure its public healthcare system can meet rising demand amid limited resources. However, the staffing crisis may persist without immediate changes in provincial funding practices.

The staffing crisis in South Africa’s healthcare sector highlights the critical role of efficient fund management in provincial health departments. Treasury’s increased allocations provide short-term relief, but long-term improvements hinge on structural budgeting and human resource policy changes to close the staffing gap and ensure accessible healthcare across provinces.