Universities seek contingency plans amid US funding cuts

Univeristy of Cape Town.
Image: File
UCT and Stellenbosch University are developing contingency plans to mitigate the severe impact of the Trump administration's cuts to US grant funding, which threaten billions in research support.
According to UCT Acting Deputy Vice-Chancellor for Research and Internationalisation, Professor Jeff Murugan, without intervention, they stand to lose over R437 million in research funding in the next 12 months, and R1.67 billion over the period 2025–2027 if all 'currently contracted, active US federal-funded awards are terminated'.
'On 7 February 2025, the White House issued an Executive Order signalling the termination of aid and assistance to South Africa. As an immediate consequence, grants from the US Agency for International Development (USAID) were discontinued. This abrupt action highlighted the vulnerability of UCT's US federally funded research. UCT currently holds a portfolio of 178 US federal funded awards comprising both direct awards to UCT and subawards from collaborating institutions in the US. Since February, UCT has received stop-work orders for sub-awardee grants funded by the NIH (National Institutes of Health ) which have halted 22 active projects (valued at R172 million). A further 93 multi-year projects have not received annual renewal notices (R265 million)," Murugan said last month.
He said the funding cuts were significant and carried the potential of long-term consequences for researchers, patients and participants, the broader university community, as well as medical research and healthcare across the country.
'UCT's portfolio of US federal grants supports a variety of research projects, providing salaries and project running costs for hundreds of staff as well as stipends for over a hundred postgraduate students and postdoctoral fellows. A large-scale termination of US federal funding would thus have very significant consequences, directly impacting staff, fellows, students and the university's finances.'
According to Murugan, the university was currently working to reduce reliance on US federal funding by identifying and securing alternative sources of support.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
On Monday, UCT spokesperson, Elijah Moholola said: 'UCT is in engagements with the appropriate stakeholders over the US federal funding matter. These engagements are ongoing, and some decisions are pending. In light of these ongoing discussions and pending outcomes, UCT wishes to not discuss the matter further at this time. The university has issued an update on the matter, and will issue further communication as and when there are new developments.'
Stellenbosch University (SU) spokesperson, Martin Viljoen said: 'SU confirms that, like other research-intensive universities in South Africa, it is also affected by the geopolitical funding policy changes. The University is still in the process of finalising its contingency plans towards optimally mitigating the associated risks. As such the University is not in a position to provide further comment at this stage."
The Department of Higher Education and Training did not respond to requests for comment by deadline.
A Working Group is expected to provide the Minister of Science, Technology and Innovation Dr Blade Nzimande with a final report on the implications and impact of the recent withdrawal of funding by the US government from key research and development programmes in South Africa by June 30.
Cape Times

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

IOL News

41 minutes ago

• IOL News

The ethical blind spots in SA's unemployment stats

South Africa's high unemployment also stands out globally. The writer says South Africa's metrics function as biopolitical instruments that perpetuate apartheid-era exclusion by rendering Black economic agency statistically non-existent. Image: File THIS opinion piece responds to former Statistician-General Pali Lehohla's article Debating the Labour Force Survey – A Response to Fourie's Critique. It serves as a rebuttal to his critique of my earlier article, Why Capitec's CEO Is Forcing SA to Rethink Its Unemployment Narrative, in which I argued that South Africa's unemployment figures fail to reflect the lived economic realities of the majority Black population. Lehohla claims that my article has 'amplified the debate' and insists on setting the record straight before it spirals into misinformation and speculation. However, my article did not reject StatsSA data outright. Instead, I argued that South Africa's high unemployment statistics are shaped by a biopolitical statistical system that invisibly erases informal economic activity and Black labour. This is largely due to restrictive measurement methodologies and the active suppression of the informal sector, unlike in other developing countries. I proposed the adoption of hybrid metrics and structural reforms to more accurately capture and support this vital, yet uncounted, segment of the economy. My stance aligns with UCT economist Haroon Bhorat, who engages constructively with Fourie's arguments rather than dismissing them entirely. Lehohla, however, dismisses Fourie's estimate of a 10% unemployment rate — based on informal economic activity — as 'abracadabra', 'lying', and the rant of a 'random businessman who profits from Black communities'. His anger masks a deeper crisis: South Africa's economic measurement system, though methodologically sound, is philosophically ill-equipped to account for the informal, digital, and survivalist nature of the majority-Black workforce. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Lehohla defends StatsSA's unemployment figures based on their adherence to International Labour Organisation (ILO) standards and the Quarterly Labour Force Survey (QLFS). Yet, I argue that this technical rigour obscures vast swaths of economic activity. For instance, a township hairdresser or street vendor without formal records becomes statistically invisible. This creates a profound ethical issue: stark racial disparities in unemployment, with Black South Africans facing an expanded unemployment rate of 40%, compared to just 7% for white South Africans. South Africa's high unemployment also stands out globally. Countries like Mexico (55% informal, 4.5% unemployment) and Nigeria (85% informal, 3.34% unemployment) include self-reported informal work in their statistics. In contrast, South Africa's metrics function as biopolitical instruments that perpetuate apartheid-era exclusion by rendering Black economic agency statistically non-existent. Bhorat notes that UCT's Development Policy Research Unit (DPRU) consistently shows South Africa having one of the highest unemployment rates globally (33.6%), but also one of the lowest informality rates (about 16.3%). He highlights how most emerging economies address unemployment not by creating more formal jobs, but by allowing informal work to flourish. DPRU research further suggests that South Africa's unusually high unemployment is not primarily due to poor job growth or strict labour laws, but because our economy actively suppresses the informal sector. My advice to DPRU is not to shy away from confronting the moral failures or societal consequences that their data may obscure. Lehohla's refusal to engage meaningfully illustrates the difficulty of escaping the grip of orthodox economics and its limitations. Orthodox economics treats the economy — and by extension, social life — as a predictable machine operating in equilibrium. When official statistics diverge from lived experiences, the social contract built on citizens sharing data begins to erode, revealing a deep crisis within the discipline of economics. Unlike Adam Smith — who grounded market value in ethics and social relations in The Theory of Moral Sentiments — modern economics has severed this moral root, prioritising abstract mathematical models over real-world complexity. Joseph Stiglitz warns that GDP-centric metrics obscure true well-being. Persistent youth unemployment amidst trillions of rands in township transactions is not merely an error — it reflects a flawed measurement paradigm. Kenneth Boulding adds that modern economics builds on classical works like The Wealth of Nations and Das Kapital, which contain unrealised 'evolutionary potential' absent in contemporary models. He cautions that excluding economic history from graduate education produces 'idiots savant' — technically proficient economists who lack institutional understanding and historical insight. A balanced synthesis of modern analytical tools and classical wisdom can help bridge this divide, fostering critical engagement with economics as both a technical and humanistic discipline. Lehohla's defence rests on rigid positivism — the belief in the 'holy' authority of statistical processes — yet this glosses over the ethical roots of economic thought. For Smith, wealth was defined by the ability to command others' labour — a social relationship, not a cold data point. Modern economics, however, has decoupled itself from these normative foundations. As Stiglitz points out, most metrics conceal inequality and human suffering, reducing development to arithmetic rather than justice. This philosophical drift is evident in South Africa: while StatsSA reports rising unemployment, Capitec Bank documents over R2 trillion in township transactions — a vibrant economic reality invisible to official instruments. This disconnect signals a deeper crisis in economics. Equilibrium models and optimisation problems eclipse historical nuance, cultural dynamics, and power relations. Boulding warned of this technocratic drift, describing modern economists as technicians fluent in calculus but blind to social texture. In a direct response to me, Lehohla stated: 'There is no legacy to protect on my part, Bhungane (my totem), nor language to polish. When a lie is told, there is no reason to give it a different word. It is simply a 'lie,' and when an argument does not make sense, it is called nonsense in the English language, and when nonsense is given wheels and wings to fly, it is called 'rubbish.' Those who wish to opine should do so from research rather than from a hailer.' While I may not use his hyperbolic or confrontational language, I am neither uninformed nor inexperienced in public discourse. I have an academic and policy track record that makes me far more than 'a hailer.' As many have rightly pointed out, shouting or using aggressive language does not strengthen an argument. We must allow space for multiple viewpoints to ensure inclusive policymaking around poverty, inequality, land reform, and unemployment. Finally, Lehohla attributes South Africa's unique unemployment situation to two key factors: agricultural activity tied to land ownership and high levels of economic concentration. He argues that these factors challenge simplistic international comparisons and emphasise the centrality of the land question in shaping employment outcomes. No. Lehohla is deliberately conflating issues to obscure the fact that his revered unemployment metrics miss the ethical forest for the numerical trees. Siyayibanga le economy! * Siyabonga Hadebe is an independent commentator based in Geneva on socio-economic, political and global matters. ** The views expressed here do not reflect those of the Sunday Independent, Independent Media, or IOL. Get the real story on the go: Follow the Sunday Independent on WhatsApp.

IOL News

11 hours ago

• IOL News

Crude sinks as Trump delays decision on Iran strike

A fire blazes in the oil depots of Shahran, northwest of Tehran, on June 15 after further attacks from Israel. Speculation had been swirling that Trump would throw his lot in with Israel, but on Thursday he said he would decide "within the next two weeks" whether to involve the United States, giving diplomacy a shot to end the hostilities. Image: Atta Kenare / AFP Oil prices tumbled Friday and equity traders fought to end a volatile week on a positive note after Donald Trump said he would consider over the next two weeks whether to join Israel's attacks on Iran. Speculation had been swirling that Trump would throw his lot in with Israel, but on Thursday he said he would decide "within the next two weeks" whether to involve the United States, giving diplomacy a shot to end the hostilities. While tensions are sky high amid fears of an escalation, the US president's remarks suggested the crisis could be prevented from spiralling into all-out war between the Middle East foes. Since Israel first hit Iran last Friday, the two have exchanged deadly strikes and apocalyptic warnings, though observers said the conflict has not seen a critical escalation. European foreign ministers were due to meet their Iranian counterpart on Friday in Geneva. In a statement read out by White House Press Secretary Karoline Leavitt, the president said: "Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Leavitt added: "If there's a chance for diplomacy the president's always going to grab it, but he's not afraid to use strength as well." Both main oil contracts were down around two percent Friday but uncertainty prevailed and traders remained nervous. "Crude still calls the shots, and volatility's the devil in the room -- and every trader on the street knows we're two headlines away from chaos," said Stephen Innes at SPI Asset Management. "Make no mistake: we're trading a geopolitical powder keg with a lit fuse. "President Trump's two-week 'thinking window' on whether to join Israel's war against Iran is no cooling-off period -- it's a ticking volatility clock." Stocks were mixed following a public holiday in New York, with Hong Kong, Taipei, Mumbai and Bangkok all up with London, Paris and Frankfurt. Seoul's Kospi led the gains, rising more than one percent to break 3,000 points for the first time in nearly three and a half years. The index has risen every day except one since the June 4 election of a new president, which ended months of political crisis and fuelled hopes for an economic rebound. Tokyo fell as Japanese core inflation accelerated, stoked by a doubling in the cost of rice, a hot topic issue that poses a threat to Prime Minister Shigeru Ishiba ahead of elections next month. There were also losses in Shanghai, Sydney, Singapore, Manila and Jakarta. The Middle East crisis continues to absorb most of the news but Trump's trade war remains a major obstacle for investors as the end of a 90-day pause on his April 2 tariff blitz approaches with few governments reaching deals to avert them being imposed. "While the worst of the tariffs have been paused, we suspect it won't be until those deadlines approach that new agreements may be finalised," said David Sekera, chief US market strategist at Morningstar.

eNCA

14 hours ago

• eNCA

Trump 'Golden Dome' plan tricky and expensive: experts

WASHINGTON - President Donald Trump's proposed "Golden Dome" defence system is a plan that will face mammoth technical and financial hurdles, and could increase global insecurity, experts say. Trump announced plans for the space-based system last month, saying it would eventually cost around $175 billion and would be operational by the end of his term in 2029. The planned defence shield's name is a nod to Israel's Iron Dome that has intercepted thousands of short-range rockets since 2011. But the US defence system would intercept much bigger intercontinental threats. The plan comes after a 2022 Department of defence study pointed to advances by China and Russia. Beijing is closing the gap with Washington when it comes to ballistic and hypersonic missile technology, while Moscow is modernising its intercontinental-range missile systems and developing advanced precision strike missiles, it said. Trump has claimed the "Golden Dome" will be "capable of intercepting missiles even if they are launched from other sides of the world". But analysts are sceptical. "I'm not holding my breath," said Thomas Withington, an associate fellow at the RUSI defence think tank. "The challenges are so significant at this stage that they may simply be unrealistic to surround in the timeframes that the Trump administration envisages." - 'Poster child for waste' - Thomas Roberts, of the Georgia Institute of Technology, said the "Golden Dome" plan was based on being able to detect when a long-range missile was fired. A missile's so-called "boost phase" -- which produces a heat blast that lasts one to two minutes and can be observed from space -- is the best time to deploy defences, he said. "If you had an enormous constellation of interceptors in orbit at all times, they could be readily de-orbited -- or systematically removed from orbit -- to strike an intercontinental ballistic missile," he said. But Todd Harrison, from the American Enterprise Institute, said this would require a massive number of satellites. "It takes about 950 interceptors spread out in orbit around the Earth to ensure that at least one is always in range to intercept a missile during its boost phase," he said. But that means that if an adversary launches a salvo of ten missiles, some 9,500 interceptors would be needed to ensure at least ten are within range. "Given that China has about 350 intercontinental ballistic missiles and Russia has 306 -- not including their sub-launched ballistic missiles -- scaling a space-based interceptor system to meet the threat quickly becomes impractical." The non-partisan US Congressional Budget Office estimates that, just to stop "one or two intercontinental ballistic missiles", the United States would need a constellation of satellites costing between $161 billion to $542 billion. The US military could spend billions of dollars on research only for the next administration to nix the project, Harrison warned. "Golden Dome could become the poster child for waste and inefficiency in defence," he said. The plan also calls for developing satellites able to fire lasers at missiles to avoid too much debris on impact. But a European defence contractor said on condition of anonymity that such lasers are "still beyond what even the Americans are capable of doing". "It's just an excellent way to give the US (defence) industry substantial funding so they can increase their technological lead without necessarily aiming for actual operational deployment," the contractor said. - 'Global arms race'? - Trump's plan is reminiscent of President Ronald Reagan ambition for a Strategic Defense Initiative in the 1980s, which also sought to place interceptor satellites in space. China and Russia, which both have nuclear weapons, have slammed the latest plan as "deeply destabilising". Nuclear-armed North Korea has called the plan a "very dangerous" threat. Julia Cournoyer, research associate at Chatham House, said the plan was risky as adversaries would likely see it "as an attempt to undermine the logic of nuclear deterrence". "If Washington is perceived to be developing a shield that could one day neutralise a retaliatory nuclear strike, it risks triggering a dangerous global arms race," which would exacerbate rather than reduce risk. Withington said Trump might be hoping to use the plan as leverage for talks with China and Russia. "It may be that the Trump administration is hoping that this would bring both countries to some kind of negotiating table to talk about a reduction of nuclear warhead sizes or to revitalise the arms control agenda," he said.