The Global Fund and the role of the Private Sector: Opportunities for Co-investments

Co-investing with the Global Fund

The Global Fund and the role of the Private Sector: Opportunities for Co-investments

Johannesburg - October 12, 2010

Pallavi Rai

Co-investment Officer,

External Relations and Partnerships Cluster


• To raise and to disburse substantial new funds

• To operate transparently and accountably

• To achieve sustained impact on HIV/AIDS, TB, and malaria

What is the Global Fund

The Global Fund is an independent public-private partnership mandated:

Raise it

Prove it

Invest it t


The Global Fund – results

To date, programs supported by The Global Fund have saved 5.7 million lives through providing AIDS treatment for 2.8

million people, anti-tuberculosis treatment for 7 million people and the distribution of 122 million insecticide-treated nets for

the prevention of malaria.


The Role of the Private Sector in the Global Fund

• Contributor of Resources– Cash and In-Kind donations

• Public advocacy

• Contributor to Good Governance- Representation on CCMs

• Implementer of Global Fund Grants- PR, SR- Co-investments


Review of Global Fund proposals:An analysis of Round 8 (110) and Round 9 (96) proposals reviewed showed:

• A significant PS component was found in 54 proposals in Round 8 (49%) and 49 proposals in Round 9 (51%).

• Another 20-24 % proposals state the importance of PS and set commitments to forge partnerships and co-investments

• Globally, the total amount of resources pledged by PS to scale up in-country grant implementation: nearly $200 million for the two rounds.

• Southern Africa estimated PS contribution $32-40 million and 50% of contributions are in Africa.

• 80% of all CCMs have at least one representative from the private sector. Southern Africa region has the most PS representation on CCMs (5-8% of all constituencies)


Partner in Governance: Participation in CCMs

• Business Coalitions represent PS on CCMs: – Cote d’Ivoire, Ghana, Tanzania, Guinea Conakry Southern Africa: Zimbabwe (2) Lesotho (2) Namibia (2) Zambia (1) Mozambique, Botswana, Angola, South Africa

• 15 CCMs have a Chair or Vice-Chair from PS :12 from SSA – Currently PS chairs CCM in : Botswana, Uganda

BG/290607/2

Southern Africa PS on CCM

Global PS on CCM

7% 5%


New Measures at the Global Fund to improve Private Sector EngagementThe Global Fund recognizes that in order to improve program reach and effectiveness, the role

of the private sector and civil society in Global Fund processes must be strengthened

Dual Track Financing System: The Global Fund recognizes that the private sector can and should play a role in the development of proposals and the implementation and oversight of grants at the country level. Hence, commencing from round 8, the Global Fund allows the flexibility of a country having more than one Principal recipient notably from the non-governmental sector.


Partner in Implementation• Principal Recipient (PR) from the private sector

As a result of DTF the number of PS PRs is increasing; however the actual number remains small.

Round 8: 7 applications proposed a private sector PR (5 from Africa) for the implementation of 12 proposals; only 3 were accepted (by the TRP):Ghana, Brazil, Sri Lanka.

Round 9: 11 applicants proposed a private sector PR, but only 2 were accepted: Société d’eau et d’électricité industrielle du Bénin (SEIB) and Haiti.Cote d’Ivoire: CNPS (Caisse Nationale de Prévoyance Sociale) (PPP approved but rejected later)

• The private sector is a sub-recipient (SR) to a civil society or government PR: business coalition play an important role in representing the private sector by scaling up programs

• ECOSIDA (Mozambique), SABCOHA(South Africa), MBCA(Malawi)


1. Company action (Classic Co-investment model)

Example:

Global Fund Recipient of Funding Company Clinic for employees/skills/

competences

Surrounding communities

•Grant •Medication (ARVs, DOTS), etc.•Possibly investment to upgrade clinics

•Leveraged company health clinics and workplace programs•Medical personnel

•Access to prevention, treatment, care


Opportunities for co-investments at all phases of the grant cycle

Grant proposal process

Grant negotiationsProposal

implementation

How? 1.Corporate participation in CCM grant application process to the Global Fund

2.Co-investment schemes added to grant negotiation process and linked to grant agreement

3.Independent agreements negotiated between companies and sub-recipients of Global Fund grants

4.Corporate co-investments and extended service delivery brought in to “boost” lagging delivery implementation

When? 1.In response to Global Fund calls for proposals.10 Round May 2010-August 2010

2. Grant negotiations beginning for Round 9 grants

3.Implementation of previous Rounds of grants underway

4.Implementation of ongoing Rounds of grants

Where? 1.In any country eligible for Global Fund grants

2.See list of approved Round 9 grants

3.Global Fund Grand Portfolio on website

3.See Global Fund Grand Portfolio on website.


South Africa (HIV, R-9)• The proposal recognizes the inadequate health systems and therefore

suggests more collaborative work between the health care facilities, the NGO and private sector.

• SABCOHA acts as SR and SABMiller is one of the SSRs

• Large companies especially mining, automobiles active in directly providing ART to workers, in addition to provision of medical insurance benefits

• Private sector companies have pledged to co-invest with the Fund:– Peer education, workplace responses by SMEs– Health and other services which are designed to mitigate the social

and economic impact of AIDS on employees and surrounding communities

– Public private initiatives underway to allow critical mass of efforts to boost capacity in more provinces.


Example of Benin (HIV, HSS R-9)

• The proposal aims to involve PS in scaling up the national HIV/AIDS response through legislative reforms and workplace programs.

• The PR is the Ministry of Health and SEIB from the private sector

• CEBAC* works with local health authorities and NGOs to implement corporate health care facilities on HIV/AIDS to reach the community

• Involves as a start, construction, transport and port industries; more companies will join

• Businesses provide staff, time, infrastructure and organizational and management methods

• Focal points in companies responsible for coordinating awareness raising sessions, prevention, counseling, screening and testing

• TA is provided by ILO, USAID, FHI

* Coalition des Entreprises Béninoises et Associations Privées pour la lutte Contre le SIDA, la TB et le Paludisme


4. Action through Business Coalitions

BG/290607/2

Mozambique: ECOSIDA provides for care and treatment for member and non-member companies, SMEs (N=350). It has facilitated an arrangement with 10 of companies “cost-sharing and solidarity for ART”. Cos such as CFM and Mozal have opened up their health clinics to the community for all health care.

Malawi: MBCA has supported the scaling up of ARV treatment to surrounding communities

Malawi, Malaria R-9 : PS contributing to the implementation of the service delivery i.e. case management and logistic support for warehousing and distribution of LLINs


4. Action through Business Coalitions

BG/290607/2

Lesotho: HIV /HSS R-8, ALAFA and Lesotho business and labour coalition co-investing substantial resources and act as SRs

Zambia: HIV /HSS R-8 - ZWAP/ZBCA is a SR to a civil society PR and work with companies to expand treatment and care

Zimbabwe: HIV /HSS : Employers’ Confederation of Zimbabwe and the Zimbabwe Congress of Trade Unions (SR consortium) as SRs scaling up workplace programmes to reach communities

Malaria R 9: Syngenta and Crown agents consortium are contributing to product support, training, research speedy and delivery of commodities for effective and efficient implementation


Conclusions

High level political commitment is essential for PPP to be implemented Current thinking on co’investments have rapidly moved from being

restricted to drugs,health service to a vast range from logistics, transport, advertising to management information systems.

Co-investments have proven to provide equitable access to health services in resource constrained settings

Involvement of businesses in national strategies is crucial

Most countries have fully operational business organizations but their efforts need to be coordinated :labour organizations have an important advocacy and implementation role


For further questions:

Please contact: Pallavi [email protected]

mailto:[email protected]

Documents

The Global Fund and the role of the Private Sector: Opportunities for Co-investments