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

1. 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

2. Raise it Prove it What is the Global Fund The Global Fund is an independent public-private partnership mandated: • To raise and to disburse substantial new funds • To operate transparently and accountably • To achieve sustained impact on HIV/AIDS, TB, and malaria Invest it t

3. The Global Fund – results To date, programs supported by The Global Fund have saved 5.7 millionlives 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.

4. 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

5. 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)

6. 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 Southern Africa PS on CCM Global PS on CCM BG/290607/2

7. New Measures at the Global Fund to improve Private Sector Engagement The 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.

8. 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: Sociétéd’eau et d’électricitéindustrielle du Bénin (SEIB) and Haiti. Cote d’Ivoire: CNPS (Caisse Nationale de Prévoyance Sociale) (PPP approved but rejectedlater) 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)

9. Company action (Classic Co-investment model) Example:

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

11. 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.

12. 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 isprovided by ILO, USAID, FHI * Coalition des EntreprisesBéninoises et Associations Privées pour la lutteContre le SIDA, la TB et le Paludisme

13. 4. Action through Business Coalitions 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 Mozalhave 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 BG/290607/2

14. 4. Action through Business Coalitions 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 BG/290607/2

15. Conclusions • High level political commitment is essential for PPP to be implemented • Currentthinking on co’investments have rapidlymovedfrombeingrestricted to drugs,health service to a vast range fromlogistics, transport, advertising to management information systems. • Co-investments have proven to provideequitableaccess to health services in resourceconstrained settings • Involvement of businesses in national strategies is crucial • Most countries have fullyoperational business organizations but their efforts need to becoordinated :labour organizations have an important advocacy and implementationrole

16. For further questions: • Please contact: Pallavi Rai • Pallavi.rai@theglobalfund.org