Rwanda Pilots Innovative Financing Mechanism
10 February 2014
KIGALI, Rwanda – The Government of Rwanda and the Global Fund are taking the lead on an innovative approach to health financing that is expected to significantly contribute to improving the efficiency of the fight against HIV in Rwanda and achieve greater impact.
A new grant agreement signed today will be used to implement Rwanda’s national strategic plan for HIV (2013-2018) with sharply reduced oversight. Rwanda and the Global Fund designed this new approach that is aligned with existing national systems and strategy, ties future disbursements directly to outcome and impact indicators, and lessens administrative burden and cost, in a framework of harmonization and mutual accountability.
It is the first time that the Global Fund is using this approach, and Rwanda has been chosen to pioneer this innovative model, because of its track record of success in health program and financial management.
Rwanda has emerged as a special success story for global health, having built a health care system, by coordinating development partners around one national plan, to give all citizens access to quality care. It has made tremendous gains against HIV and AIDS, and has already achieved a more than 50 percent reduction in HIV incidence rate among the adult population since 2000. If the current trends continue, Rwanda will go beyond the Millennium Development Goal target. As His Excellency President Paul Kagame said “MDGs are a ceiling not an end.”
Under the terms of the agreement signed here today, Rwanda and the Global Fund agreed that future disbursements will be directly tied to achievement of key outcome and impact indicators. This new flexible, Performance Based system emphasizes mutual accountability and greater country ownership of the national response.
“This is a great approach,” said Dr. Agnes Binagwaho, Minister of Health of Rwanda, adding that it is testimony to the achievements Rwanda has made in managing grant funding, and the partnership we enjoy with the Global Fund. We are confident that we will sustain the universal access to treatment and care, reduce new infections by two-thirds, and halve the number of AIDS deaths in the next five years.
The agreement, which includes funding of US$204 million, gives more flexibility on how funds are spent, and allows for savings to be re-invested in the national response. Grant funds will be part of a joint investment framework with financial assistance from the Government of Rwanda and other development partners.
Under the agreement, Rwanda will continue to monitor the achievement of universal access to HIV treatment and care for people living with HIV, and the reduction of new infections for key affected populations. The Global Fund will jointly verify the results with Rwanda.
“The main idea of this approach is to empower high-performing countries like Rwanda to further invest for higher impact,” said Dr. Nafsiah Mboi, Chair of the Board of the Global Fund. “They have proved this is possible, building on an outstanding HIV program, a robust HIV and AIDS national strategic plan, and strong financial and monitoring systems. We are proud to be their partners, and admire their accomplishments.”
The Global Fund will be looking into extending the approach to other countries, and also consider it for tuberculosis and malaria grants.