Innovative Finance

The Global Fund connects countries with diverse partners – private sector investors, philanthropists, civil society organizations, and multilateral donors – to develop and implement practical, innovative finance mechanisms to increase the impact against the three diseases. These solutions complement government spending and amplify domestic health financing.

We are uniquely positioned to enable innovative finance to have a catalytic effect. Our experience shows that innovative finance can have significant impact by:

• Raising funds for program delivery
• Fostering innovation
• Increasing efficiency
• Supporting countries in transition and ensuring sustainability

Innovative Financing Platforms

Our partnership focuses on key innovative financing platforms, outlined on this page, that complement the Global Fund’s funding model and government spending and that increase impact by:

• Increasing funding for health programs beyond traditional funding mechanisms, both at a Global Fund level and directly at the implementing country level
• Enhancing the efficiency and impact of our health programs

Consumer Donations

The Global Fund fosters partnerships that empower millions of individuals to contribute to the cause of global health. We work with organizations that raise funds when individuals purchase products or services, or create grassroots fundraising mechanisms. Some or all of the proceeds support Global Fund-supported programs.

Philanthropic Platforms

Innovative philanthropic investment funds enable different types of investors, foundations, philanthropic leaders and others to pool their financial contributions to the fight. These pooled funding mechanisms aim to mobilize and distribute funds in a more coordinated and efficient way. Pooled fund investing is used to leverage financial resources as well as expertise to support Global Fund-backed health programs.

Debt Swaps (Debt2Health)

Launched in 2007, Debt2Health allows creditor and debtor countries to convert – or swap – part of their debt into lifesaving health investments. Currently focused on the conversion of official bilateral debt, all swaps are flexibly and independently negotiated in partnership with the Global Fund and are designed to meet the needs of creditor and debtor countries alike. 

Learn more

Results-based Financing

Payment for results is a results-based financing modality in which the Global Fund makes payments to Principal Recipients after verifying that results have been achieved. This approach allows for the use of grant funds within pre-agreed parameters and is not based on monitoring and managing inputs. Payment for results can be applied to an entire grant or a specific component of a grant. 

The Global Fund has supported results-based financing models in a variety of countries, including El Salvador, India and Rwanda. In Rwanda we support a results-based financing approach called the national strategy financing model. It enables Rwanda to evaluate performance against pre-defined targets and shift resources as priorities change. 

Outcome-based Financing

Outcome-based financing is the disbursement of funds after pre-defined outcomes are achieved, with the donor or private investor generally providing upfront financing to a program implementer. If the pre-agreed outcomes of the program are met, the investment is repaid, often with a financial return. This financing includes social impact bonds, which focus investments on programs that yield effective social outcomes in the fight against the three diseases. 

• In South Africa, the Global Fund supports a social impact bond to protect adolescent girls and young women from HIV.

New Possibilities

We are constantly exploring new possibilities for partnerships and funding sources to increase our impact and save more lives. We follow a structured approach to identify innovative finance mechanisms and apply them to specific situations to enhance impact. Read more in our Forming Partnerships page and in our reports:

• A Structured Approach for Innovative Finance - Increasing Financial Innovation
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• Update on Innovative Financing
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