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The NetMark Story: A New Vision for Public-Private Partnerships

The NetMark Story: A New Vision for Public-Private Partnerships. Nancy Nachbar Center for Private Sector Health Initiatives Global Health, Population, and Nutrition Group. Innovation Problem solving Risk taking Impact Sustainability. A Tale of. The Burden of Malaria.

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The NetMark Story: A New Vision for Public-Private Partnerships

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  1. The NetMark Story:A New Vision for Public-Private Partnerships Nancy Nachbar Center for Private Sector Health Initiatives Global Health, Population, and Nutrition Group

  2. Innovation Problem solving Risk taking Impact Sustainability A Tale of....

  3. The Burden of Malaria 1 million deaths and 247 million cases annually, 212 million cases in Africa Cost to Africa: $12 billion/year 10% HH yearly spending Most vulnerable: Young children, pregnant women Preventable with insecticide treated nets (ITNs) and other control measures

  4. Full Market Impact TECHNOLOGY DEMAND SUPPLY IMPACT DISTRIBUTION EQUITY POLICY

  5. Problem-Solving & Innovation • “Joint Risk—Joint Investment” • Division of responsibilities between commercial partners and NetMark • Create “Win—Win” situations • Sustainability

  6. NetMark by the Numbers • 41 • African distributors • $88 million • commercial investment • 9 • multinational partners 60 million ITNs sold in 7 countries 2.1 million discount vouchers 2.3 million free ITNs WHO- recommended LLIN technology developed in public domain Sustainability: These companies (and others) continue to invest and sell

  7. How to get distributors to start large scale & retailers to stock ITNs? Challenges: Distributors didn’t have ITNs in their plans Limit risk by starting with test market Public Health Urgency VS Commercial Managed Risk Retailers want “on consignment” Solutions: SEED STOCK Distributor bought 1 container & NetMark 1 Income used to buy replacement container Seed Stock lessened risk of recruiting new retailers and expansion S U P P L Y

  8. Supply “then and now” 2001 – 2 distributors in Africa formally selling ITNs (one in Ghana, one in Uganda) 2009 – over 40 distributors mostly selling LLINs in all types of retail outlets in the 7 NetMark countries alone.

  9. How to link NetMark promotion with brand promotion by multiple partners? Challenges: Little sales income for commercial promotion NetMark responsibility to help partner brands Solutions: Generic promotion of ITN product category that helps ALL sellers of ITNs “NetMark “Seal of Quality” as link D E M A N D C R E A T I O N

  10. NetMark Seal of Quality

  11. How to utilize local net manufacturers? Challenges: Quality often poor Total production low No access to LLIN technology Solutions: TA for Quality control Created LLIN process in public domain T E C H N O L O G Y

  12. Tana Netting-Thailand3 million/year capacity

  13. Sunflag/Nigeria800,000/yr capacity

  14. Nigerian Stitcher AssociationsITN Production 0 to 2.1 million

  15. How to target subsidies more efficiently? Challenges: Use public funds mostly for subsidy & not management Support rather than undermine commercial sector Solutions: ITN Discount Vouchers– clinics distribute; commercial sector redeems Value up to 100% People pick the ITN they want E Q U I T Y

  16. Public Sector Engagement

  17. Public Sector Engagement

  18. Private Sector Engagement

  19. Private Sector Engagement

  20. Voucher Programs Widen Availability

  21. P O L I C Y How to deal with taxes & tariffs on ITNs and a level playing for commercial activities? • Challenges: • T&T raised consumer prices • Commercial viability limited • National malaria plans needed to include commercial sector • Solutions: • Support to T&T reduction efforts in NetMark countries • Broader advocacy program to other countries • Participation in updating national malaria plans

  22. NetMark’s Policy Breakthroughs • All 7 NetMark countries are T&T free • Seven of 13 non-NetMark countries where NetMark trained advocacy champions have removed T&T • September 2009: 22 African countries have removed, reduced, or have exemptions for T&T • AED-Gates Foundation T&T Initiative

  23. Thank You!

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