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South Africa's Ramaphosa signs disputed health bill before election

Daba Finance/South Africa's Ramaphosa signs disputed health bill before election
AFRICAN BUSINESS AND ECONOMYMay 19, 2024 at 11:00 AM UTC

TLDR

  • South African President Cyril Ramaphosa signs controversial health-insurance bill into law ahead of challenging election.
  • Legislation aims to overhaul healthcare system for more equitable access to treatment; private sector hindered from insuring treatments under National Health Insurance plan.
  • Opposition parties and business groups challenge plan's constitutionality, promising legal action against the new law.

South African President Cyril Ramaphosa signed a controversial health-insurance bill into law, weeks ahead of a challenging election for his party. The legislation aims to overhaul a dysfunctional healthcare system and ensure more equitable access to treatment.

It prohibits the private sector from insuring treatments covered under the National Health Insurance (NHI) plan but opposition parties and business lobby groups argue that the plan is unconstitutional and have pledged to challenge it in court.

“The inequities and inequalities that characterize our health systems are unjustified and require fundamental overhauling to ensure equity and sustainability,” Health Minister Joe Phaahla said at a ceremony in Pretoria on Wednesday, before Ramaphosa signed the legislation.

Key Takeaways

South Africa’s ruling African National Congress (ANC) is under pressure to win over voters before the elections on May 29. Opinion polls indicate the party risks losing its parliamentary majority for the first time since 1994 due to widespread dissatisfaction with sluggish economic growth, high unemployment, and rampant crime and corruption. The government aims to use the National Health Insurance (NHI) to reform a system where a multibillion-rand private industry serves about 16% of the population, while the rest rely on overburdened public facilities. Underinvestment, corruption, and neglect have plagued public health facilities, with many failing to meet required service delivery standards. According to the Office of Health Standards Compliance, only 65% of 781 primary health facilities met the necessary standards in its most recent report.

South Africa
Elections
Cyril Ramaphosa
Health Insurance
Healthcare
Insurance

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