1. 1 New Funding Model Key features and implementation Inter-Agency Meeting 5-7 March 2014 Linda Mafu, Head Political and Civil Society Advocacy Department, External Relations Global Fund

2. 2 Bigger impact: focus on countries with the highest disease burden and lowest ability to pay, while keeping the portfolio global Predictable funding: process and financing levels become more predictable, with higher success rate of applications Ambitious vision: ability to elicit full expressions of demand and reward ambition Flexible timing: in line with country schedules, context, and priorities More streamlined: for both implementers and the Global Fund Principles of the new funding model Principles of the new funding model

3. 3 How does the new model differ from the previous model? Passive role by the Secretariat in influencing investments More active portfolio management to optimize impact Low predictability: timing of Rounds, success rates and available funds Engagement by Global Fund Country Teams in country dialogue and concept note development Cumbersome undifferentiated process to grant signing with different delays Disbursement-ready grants with differentiated approach Timelines largely defined by the Global Fund Hands-off Secretariat role prior to Board approval Timelines largely defined by each country High predictability: timing, success rates, indicative funding range From previous model To new funding model

4. 4 New funding model cycle and timing 2 nd GAC Concept Note 2-3 months Grant Making 1.5-3 months Board TRP GAC Ongoing Country Dialogue National Strategic Plan/ Investment Case Grant Implementation 3 years Countries can apply anytime in 2014-2016 – identify now when funds are needed for each disease Grant funds can be for 3 years beyond grant signature in 2017 & beyond

5. 5 How long will it take to access funds? The average timing will be around 10 months from country dialogue to grant dispersements. Depending on how prepared a country is, it could take as little as 6 months or as long as 16 months to access funds. Working ahead on a strong National Strategic Plan or investment case is the best way to speed up the process. 1

6. 6 Program Split Approach to be used: 6 Information given to country will include: How total funding envelope calculated (including amount per component) and amount to be accessed Guidance on HSS investment ;

7. 7 What is the Global Fund’s contribution to FOR ATM -2014-2016 The Global Fund s contribution to meeting the global needs is $15 billion. Over $12 billion has been pledged in 2013 out of the $15 billion target. We have a gap: of over $2 billion out of 15 billion is for 2014- 2016 We know that international priorities are changing. Health has a small cut.

8. 8 Africa has made commitments Abuja Declaration on HIV/AIDS, Tuberculosis and Other Related Infectious Diseases, 2001: Heads of State commit to spend at least 15 % of budgets on Health. Addis Ababa, African Union roadmap on shared responsibility and global solidarity for AIDS, TB and malaria response, 2012 Endorsed Roadmap on Shared Responsibility and Global Solidarity for HIV, TB and Malaria, Pharmaceutical Manufacturing Plan Tunis Declaration on value for money, sustainability and accountability in the health sector, 2012 Enhance value for money, increase accountability improve sustainability of health resources

9. 9 Domestic Investment 2011: % of total government expenditure Rwanda23.7% Malawi18.5% Zambia16.0% Togo15.4% Tanzania11.1% South Africa 10.0% Botswana 8.7% Nigeria7.5% Kenya5.9% Source:UNAIDS, Oxford Policy Management, Et al.

10. 10 To sustain an ATM and HSS Response? 1.Increase domestic financing Public or government Private sector High Net Worth Individuals 2.We need to advocate for increased donor support 3. We need to involve new donors(emerging Market ) 4.Decrease the cost of the current response by improving efficiencies in existing programs

11. 11 Innovative ways of raising money Source US $ billions 75% of an alcohol levy3.9 Contributions from high-revenue enterprises2.4 Airline levy by all African countries1.7 2% of public sector budgets earmarked for AIDS2.4 Mobile phone levy2.0 1% income tax levy earmarked for AIDS3.1 What else can we explore?

12. 12 Plan for analyzing “Fiscal Space” Evaluating potential resources needed and resource availability, identifying future resource gaps and potential ways of eliminating such financial gaps. Assessing potential opportunities to make the 3 largest interventions efficient: –ART –PMTCT –OVC

13. 13 Areas where we are working on with countries and partners The domestic and international funding-data needs to be improved and accessible. Which organisation is funding what and where? Political leadership is critical, and we have been working on developing advocacy messages to ensure that health continues to be a priority,G8,G20,BRICS Revisit the economic arguments for health, we need to get private sector to the table Address rigid budgeting practices that are making it hard to reallocate revenues towards health Empower Health officials to talk to finance and empower finance to understand health

14. 14 Areas where we are working on with countries and partners Recognize and improve the role of civil society Address the core question: is it possible to define the “right” mix of domestic and international investment in countries and this will vary country by country. Establish on a country by country basis an acceptable “benchmark” for countries to invest from their own resources.

15. 15 Thank you.