Thuto Ngobeni

Companies like Quantumed, which provide critical healthcare products such as HIV and Sexually Transmitted Infection test kits, condoms, and lubricants, are facing immediate disruptions. Many of their customers, which are funded by international organisations, are now unable to procure these supplies, creating a ripple effect that not only threatens company revenue but also job security.

Avian Bell, the Chief Executive Officer of Quantumed, spoke about the significant challenges his company is facing due to the freeze. "Without access to these funds, we cannot provide these essential supplies, which directly impacts our revenue and threatens our ability to sustain jobs," Bell explained. "The longer this uncertainty persists, the harder it becomes to invest and maintain operations."

Bell highlighted the growing concern regarding job losses, with an estimated 15 000 healthcare jobs at risk due to the financial instability affecting suppliers, manufacturers, and funded organisations. "For every person who loses their job, it impacts not only their livelihood but also their families, potentially affecting many more people," he added. The ripple effect is felt across the industry, with small and medium-sized enterprises. particularly vulnerable.

As the crisis deepens, businesses are already seeing the impact. Quantumed has received official notices from clients that funding organisations have paused programs, halting shipments of critical products. In some cases, stocks that were already en route to underprivileged areas were returned, exacerbating the crisis.

Bell expressed concern over the fate of paid-for stock that cannot be returned to manufacturers. "We are now holding on to products specifically manufactured for these paused projects. It's a significant financial burden for small businesses, and we are struggling to manage the cost," he said.

--ChannelAfrica--