Global Fund adopts new financing model

The Global Fund, one of the key supporters of the country’s health sector, is finalising plans that will see the organisation channel its aid directly through the National Budget. The Fund’s support is currently channelled through projects. Officials say, once adopted, the new model will be result-based financing and the Global Fund will be managed by the Treasury in the Ministry of Finance. In preparation for the shift in the financing system, a team of Global Fund officials from Geneva is currently in the country to assess financial and procurement processes before the Fund can adopt the new policy. Speaking to The New Times, yesterday, Dr Agnes Binagwaho, the minister for Health, said the shift is a response to a request by President Paul Kagame during the Busan Summit on aid effectiveness in 2011, where the President said the result-based financing approach helps countries to use funds with more flexibility. “We want to go for our budgetary approach so that we can do more with the money with more flexibility. The only obligation is to use appropriately the money in accordance with our laws of finance and procurement,” Dr Binagwaho said. Mode of operation In a statement, the Ministry of Health said reporting and funds disbursement will be done on annual basis and both the Global Fund and government will agree on indicators to evaluate and remunerate. During their time in Rwanda, the eight-person team from the Global Fund, together with the Health ministry will review the National Strategic Plan and agree on the assurance mechanisms. The Global Fund has, through the Single Project Implementing Unit, given Rwanda $375 million (about Rwf900 billion) over the past three years in their support, mainly toward the fight against malaria, HIV/Aids and tuberculosis. Among its projects in the fight against malaria, the Fund has seen the successful campaign of distribution of mosquito nets, which has led to the decline of malaria cases in the country, further boosting Rwanda’s success in achieving Millennium Development Goal on health. According to official statistics, tuberculosis mortality rate in Rwanda fell by 78 per cent, with the number of patients being followed at home for treatment increasing to 53 per cent in 2012 from 4 per cent in 2005. The Global Fund money has been heavily invested is anti-retroviral therapy, where, currently, 94 per cent of HIV-positive Rwandans access free or subsidised treatment.