The University of Cape Town (UCT), long considered a continental research powerhouse, is undergoing a significant strategic overhaul in response to abrupt and sweeping funding cuts from the United States government. The pivot marks a critical moment for the institution as it races to safeguard its research programs, academic staff, and long-term viability.

UCT was the largest non-U.S. recipient of federal research grants, particularly from the National Institutes of Health (NIH). Since February 2025, however, the NIH has suspended 22 active research projects at UCT valued at approximately ZAR 172 million (USD 9.6 million), while renewals for an additional 93 multi-year projects, worth ZAR 265 million, remain in limbo. If the current freeze continues, UCT stands to lose more than ZAR 437 million in the next year alone, with projected losses of up to ZAR 1.67 billion by 2027.

The funding halt, prompted by political and administrative shifts in Washington, is already impacting medical research, community-based healthcare programs, and employment at the institution.

In response, UCT leadership has embarked on a multi-pronged strategy to mitigate the fallout and reposition the university for a more resilient research future. Acting Deputy Vice-Chancellor for Research and Internationalisation, Professor Jeff Murugan, said in a recent communication that the university is taking “structured and immediate” steps to confront the crisis.

Key among those measures is the diversification of UCT’s funding base. The university has submitted an urgent request for support to the South African government and is engaging with European research agencies, philanthropic foundations, and other international partners to stabilise funding.

Internally, UCT is reallocating resources and focusing on strategic research clusters that prioritise interdisciplinary work and sustainable investment. Particular attention is being given to preserving healthcare research and supporting vulnerable academic units.

“This moment demands resilience and agility,” said Murugan. “While the loss of NIH funding presents a serious challenge, it also opens an opportunity for UCT to reimagine its global research role and deepen partnerships aligned with the African research agenda.”

To ensure long-term sustainability, UCT is also enhancing its internal research governance systems, drawing from the crisis to improve grant management, compliance structures, and financial oversight.

As UCT moves forward, its bold response may offer a model for other African institutions navigating an increasingly volatile global funding environment. Despite the turbulence, Murugan reaffirmed the university’s commitment to excellence: “We are navigating this storm with strategic clarity—ensuring that UCT’s research mission is not only preserved but redefined for the future.”

 

Article by Jed Mwangi

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https://www.news.uct.ac.za/article/-2025-05-20-uct-navigating-us-related-funding-challenges