The COVID-19 pandemic is impacting global health product supply chains, affecting key materials and ingredients, finished health products, logistics, shipping and more.
The Global Fund is working closely with suppliers and partners to assess the impact on core health product supplies, providing recommendations for implementing partners on how to manage the impact and exercising flexibilities to ensure the continued flow of quality-assured health products.
As of 6 July 2020, the Global Fund’s product and delivery outlook shows the overall impact of COVID-19 on health product supply chains for Global Fund grants remains at moderate.
|Area||Situation update||Operational risk assessment|
Including antiretroviral, malaria and TB medicines
|In India, reduced production is expected to continue through the lockdown period. Delays of 1-2 months are to be expected over the next few months. We continue to monitor progress directly with suppliers and the U.S. Government, WHO, the Stop TB Partnership and other partners to support access to needed products despite the challenging situation.||Moderate|
|Long-lasting insecticidal nets||Longer lead times are expected for pyrethroid nets until production in India restarts. While India lockdown affects PBO supply, production in Viet Nam and Tanzania is ongoing, which allows us to mitigate risks. Initial supply issues for Next Generation nets have eased with China-based manufacturers now operating at full capacity.||Moderate|
|Diagnostics||Supply constraints have emerged for malaria RDTs, and the Global Fund is actively engaging with partners and other suppliers to identify options to ensure supply continuity. Delays of at least 2 months are anticipated for orders placed after 10 April. There are no supply issues for viral load or early infant diagnostics, however delays are likely due to logistics constraints.||Moderate|
|Freight and logistics||Multiple origin and destination countries adopting different restrictions, are directly or indirectly impacting freight movements. The Global Fund’s Procurement Service Agents are operating as planned where possible to propose the best delivery option, but with contingencies such as: Re-rerouting of shipments; consolidating airfreight to ocean freight or changing transit countries to catch “cargo-only” aircraft; changing mode of transport for final delivery; shipping to neighboring countries; exploring road transport and air charter options; and others. Cost impacts are highly likely.||Moderate|
We are assessing potential delays for every order. Currently, 15% of orders face delays of more than 30 days, including 12% of orders in transit. We are working closely with Principal Recipients to review mitigation plans and adapt lead times to minimize disruption.
Our regularly updated document contains additional details on our latest assessment and recommendations:
The Global Fund advises Principal Recipients:
The Global Fund introduced flexibilities to ensure the continued flow of quality-assured health products and support countries in their response to COVID-19.
Our operational guidance for Principal Recipients relates to requirements for procuring eligible COVID-19 diagnostic products and managing exceptions on quality assurance testing and sampling. Additionally, we regularly update our list of COVID-19 diagnostic products eligible for procurement with Global Fund financing, in line with our Interim Quality Assurance Requirements.
Information related to the quality assurance of health products related to the three diseases is on our Quality Assurance pages.