Africa: Funds for Fighting AIDS, Updates, 10/14/02

Africa: Funds for Fighting AIDS, Updates, 10/14/02

Africa: Funds for Fighting AIDS, Updates Date distributed (ymd): 021014 Document reposted by Africa Action

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Region: Continent-Wide Issue Areas: +economy/development+ +health+


This posting contains several short documents with information concerning funds for fighting the AIDS pandemic. The documents are from UNAIDS and the World Health Organization, from the Global Fund to Fight AIDS, TB and Malaria, and from the Treatment Action Campaign in South Africa. The documents are preceded by several additional recent links on the same topic.

Recent news reports indicate some positive signs - the Global Fund expects to release its first grant funds by the end of the year to Tanzania, Ghana, Sri Lanka, and Haiti; the South African government has issued a Cabinet statement affirming its intention to "make it feasible and effective to use anti-retroviral in the public health sector"; and Coca-Cola has responded to protests by announcing a limited expansion of its treatment programs for workers. However, the overall picture is that the funds actually being provided are still only a trickle compared to what is needed.

Note that the UNAIDS press release below includes funding for "three additional interventions (universal precautions to prevent HIV transmission in health care settings, post-exposure prophylaxis for health care workers, and safe needles for all medical injections including immunization campaigns)." See for additional background on the importance of blocking HIV transmission through unsafe health care.

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Selected New Links


Aidspan and Global AIDS Alliance, "Filling the Funding Gap to Save Lives," October 9, 2002 and

A new report by Aidspan and the Global AIDS Alliance calculates "equitable contributions" to the Global Fund's own estimates of its current requirements that each country should pay. The current U.S. pledge of $200 million for 2003 is only 13% of its estimated fair share of $1.5 billion. Congressional action now stalled would increase this to either $250 million (House) or $300 million (Senate). NOTE: this figure is calculated on the basis of the Fund's current reduced estimates rather than independent estimates of the total funds needed each year, which give a much larger fair share of $3.5 billion (see


Health Gap / ACT-UP, "AIDS Activists to Coke: Where's the Real Thing," September 27, 2002 nr_20020926_sabaco_statement.html [type URL on one line]

Coca-Cola has announced the extension of anti-retroviral treatment ot a larger percentage of its African workforce, but activists planning demonstrations on October 17 say the plan still falls far short.


Population Action International, "Condoms Count: U.S. Falls Short, Wealthy Countries Fail to Meet Need," September 29, 2002 news_092902_condomscount.htm [type URL on one line]

Despite all the talk about prevention, condom supplies from international donors dropped from 970 million in 1990 to 950 million in 2000; the U.S. contribution dropped by roughly half.


Press Release


For more information, please contact Anne Winter, UNAIDS, Geneva, (+41 22) 791 4577, Dominique de Santis, UNAIDS, Geneva, (+41 22) 791 4509, Andrew Shih, UNAIDS, New York, (+ 1 212) 584 5024, or Jon Liden, WHO, Geneva (+41 79) 244 6006.

Geneva, 10 October 2002

New figures show AIDS fight under-resourced

Existing funds insufficient to keep pace

Geneva, 10 October 2002 - On the eve of the Board meeting of the Global Fund to Fight AIDS, TB and Malaria, the Joint United Nations Programme on HIV/AIDS (UNAIDS) and the World Health Organization (WHO) released updated figures on the cost of mounting the global response to HIV/AIDS.

Revised estimates to 2005 for prevention, care and support programmes in low- and middle-income countries indicate that US$ 10.5 billion will be needed by 2005. These take into account both declines in the price of anti-retroviral drugs and the inclusion of three additional interventions (universal precautions to prevent HIV transmission in health care settings, post-exposure prophylaxis for health care workers, and safe needles for all medical injections including immunization campaigns), to the 22 included in the original estimates.

The estimates, prepared by a working group of the UNAIDS Economics Reference Group, reflect a revision of earlier figures published in Science magazine in June 2001.

The revised estimates reinforce the call by the Secretary-General of the United Nations to rapidly scale up spending on AIDS to some US$10 billion a year on AIDS by 2005.

The new estimates also project that financial resource needs will continue to increase significantly and that by 2007 some US$ 15 billion a year will be required to successfully combat AIDS. The updated estimates are comparable to what the Commission on Macroeconomics and Health (CMH) identified would be needed by 2007 for HIV/AIDS specific resources to fight the epidemic.

The CMH also estimated that beyond the resources required to support the HIV/AIDS specific interventions, additional resources will be required for health sector infrastructure development in the poorest countries. The UNAIDS Economics Reference Group estimates do not include costs for increasing physical infrastructure, but rather are based on increasing coverage of HIV interventions within existing infrastructure capacities.

According to UNAIDS and WHO, substantial increases in expenditures from all quarters - governments, bilateral and multilateral agencies, non-governmental organizations and the private sector - will be urgently required to keep pace with the epidemic'srapid expansion, financial need and programme capacity.

The latest UNAIDS estimates also indicate that to meet the US $6.5 billion in urgent needs identified to fight the epidemic in 2003, funding from all sources will have to double from 2002 levels. For 2002, UNAIDS projects that spending will approach or exceed $3 billion.

At its Board meeting, which begins in Geneva today, the Global Fund is expected to discuss its fundraising targets for 2003-2007.


Press Release

Global Fund to Fight AIDS, TB and Malaria

11 October 2002, 18:00 GMT


Programs Are Currently Poised to Scale Up the Fight Against the Epidemics, According to Assessment Commissioned by the Global Fund

Donors will need to double their contributions to the Global Fund to Fight AIDS, TB and Malaria next year in order to meet the anticipated increase of quality health programs offering effective responses to the epidemics, according to financial projections released by the organization today.

To date, $2.1 billion has been pledged to the Global Fund over the next five years. In 2003, the Global Fund's needs will grow an additional $2 billion to finance the increasing number of worthy proposals. In 2004, $4.6 billion more will be required. These forecasts are based on the growing capacity of countries to absorb these resources and expand effective programs, and evidence of a sharp increase in both quantity and quality of grant proposals.

"The current situation requires a substantial front-loaded capital investment to scale up existing efforts," said Prof. Richard Feachem, executive director of the Global Fund, who called for the additional $2 billion in 2003. "The programs are ready. Any delay now will be measured by millions of lives lost and billions of dollars of additional cost to later respond to the expanded epidemics."

A study published this summer in The Lancet suggests that two-thirds of new HIV infections expected by 2010 could be prevented with an immediately expanded response of prevention interventions. The U.S. National Intelligence Council reported last week that, without a massive global response, HIV prevalence in China, Ethiopia, India, Nigeria and Russia could be up to three times higher than estimates released earlier this year, leading to a global burden that could surpass 100 million cases.

"The impact and pace of AIDS, TB and malaria cannot be overestimated," said Dr. Chrispus Kiyonga, chair of the Global Fund board. "The epidemics will cost us nearly 6 million lives this year and nearly $120 billion in lost productive years of life."

In April 2001, United Nations Secretary General Kofi Annan proposed the creation of a global "war chest" to fight AIDS, TB and malaria, and called on donors to provide at least $10 billion additional funds annually to fight these three big diseases of poverty. Later that year, the Commission on Macroeconomics and Health confirmed that at least $10 billion annually in additional donor funds would be required to fight the three diseases.

$2.1 billion was quickly pledged to the Global Fund, with the United States providing the largest government contribution with a sum of $500 million, followed by the United Kingdom and Italy. The Bill and Melinda Gates Foundation has been the leading philanthropic donor with a commitment of $100 million, and Winterthur Insurance/Credit Suisse and ENI are currently the largest corporate donors with pledges of $1 million and $.5 million respectively.

In January 2002, the Global Fund became operational. Within three months the board committed $616 million of funding to 40 countries over two years, with further commitment pending program performance and fund availability.

As of 10 October, $483 million of the pledged $2.1 billion had been transferred into the Global Fund's account. Of the 31 countries that have pledged support to the Global Fund, only Ireland had made a complete payment. Seven other countries had made partial payments.

A second round of proposals is currently underway. Today, the Global Fund disclosed that approximately $5.2 billion is being requested of the Global Fund from second round proposals that have meet initial eligibility criteria. A decision on which of these proposals should be awarded funding is scheduled for January 2003.

"If we go about business as usual, we will fail," said Feachem. "The Global Fund was created to help take the world's response to a higher financial and operational level. The three epidemics can be driven back where there is top-level political commitment, where the public sector and private sectors work together, and where there is accountability for achieving results."

At the conclusion of the Global Fund's third board meeting today in Geneva, the board agreed to make resource mobilization a main focus of its next meeting in January 2003.

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The Global Fund to Fight AIDS, TB and Malaria is an independent, public-private partnership established in 2002 that is working to attract significant new resources to fight AIDS, tuberculosis and malaria, and then to innovatively manage and disburse these funds to effective prevention and treatment programs in countries with greatest need.

General background information on the Global Fund can be found at

For additional information, please contact the Global Fund to Fight AIDS, TB and Malaria at + 41 22 747 7780. For region-specific information, contact:

Asia Bobby John +91-98-22063119 Africa Junaid Seedat + 27-82-435-1321 Latin America Jove Oliver + 46-73-334-4702 North America Jim Palmer + 1-202-262-9823 Europe Mariangela Bavicchi + 41-79-202-0261 Francophone countries Patrick Bertrand + 33-6-60040442 United Kingdom Louis Da Gama + 44-208-357-7413


Press Release

Treatment Action Campaign

Save 3 Million Lives And Prevent 2.5 Million Infections! Research Shows Need For A Comprehensive Treatment And Prevention Plan

September 26, 2002

[A fact sheet with more details, in pdf format, is available at:]

Urgent action by Government can save 3 million lives of people living with HIV/AIDS by 2015, reduce the number of orphans and prevent new infections. New research demonstrates the enormous social and economic costs our country will face if government does not lead civil society and the private sector in the use of antiretroviral therapy. The Treatment Action Campaign's (TAC) call for a national treatment plan by government with clear budgets and time-frames is the only chance this government has to avoid a social catastrophe.

Research conducted by the UCT Centre for Actuarial Research (CARE) demonstrates that a comprehensive treatment and prevention plan that incorporates antiretroviral therapy will prevent millions of AIDS deaths and new HIV infections. By implementing voluntary counselling and testing, mother-to-child transmission prevention, improved management of sexually transmitted infections and highly active antiretroviral therapy (HAART), nearly 3 million AIDS deaths can be averted and over 2.5 million HIV infections can be prevented by 2015. Furthermore a treatment programme that includes HAART can prevent approximately a million double-orphans (children under the age of 18 both of whose parents have died).

The TAC has used the results of the CARE research to estimate costs of implementing these programmes. The cost of HAART for adults gradually increases from R224 million in 2002 to R6.8 billion in 2007 to a peak of R18.1 billion in 2015. These amounts include personnel and monitoring costs and assume that generic medicines that have been proven equivalent to patented brand-name drugs are available for use. With a realistic price reduction in antiretroviral medicines to R300 per month for a first-line regimen and R450 per month for a second-line regimen, the cost of Adult HAART can be reduced to R14.1 billion in 2015. Adult HAART is the most expensive of the health interventions that CARE has modelled but has the most significant effect on life-expectancy and AIDS deaths.

Central to our work is the right to life and dignity of all people. But, a clear human rights approach is not the only gain for society. Treatment will not only save lives, it will reduce hospitalisation costs to the public health sector and the cost of orphan grants and caring for orphans. Furthermore, through treatment we can avoid: the collapse of the public health system; loss of human capital (e.g. teachers, nurses, students); and immense social dysfunction. In addition, the economy will benefit from investment in health-care, stability in productivity and retention of skills.

While modelling the future is not an exact science, this is the most comprehensively researched work of this kind that has yet been done with regard to the South African HIV epidemic. It is therefore the best information available and there is an imperative to act upon it, given the challenges the HIV epidemic poses for South Africa's development. Government must now meet its Constitutional duty to ensure the rights to life, dignity and health-care. It must develop and implement a plan which at a minimum incorporates voluntary counselling and testing, mother-to-child transmission prevention of HIV, improved management of sexually transmitted infections and highly active antiretroviral therapy. By working together all sectors of South African society can alleviate the worst effects of the HIV epidemic. We must act now!

(The CARE research was commissioned by the TAC. We wish to thank Leigh Johnson, Professor Rob Dorrington, the Centre for Actuarial Research, Alex Van Den Heever, Chris Raubenheimer and all the health care professionals and researchers who provided information for this work. This research will be submitted to NEDLAC, the Health Ministry, SANAC and provincial health departments.)

The full CARE report is available from


Message-Id: <> Date: Mon, 14 Oct 2002 15:37:27 -0500 Subject: Africa: Funds for Fighting AIDS, Updates

Editor: Ali B. Ali-Dinar

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