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Type
Research Report
Author
UNAIDS Secretariat in Geneva with UNECA
Posted
November 11, 2006
Categories
Health
Peace & Conflict
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A vastly expanded and well-funded multi-billion dollar response is needed to change the course of the HIV/AIDS pandemic in Africa, through effective prevention, care and impact mitigation. The growing awareness of AIDS’ devastating impact and increasing political commitment provide a new opportunity for huge increases in funding and in the scale of the programmatic response to the pandemic. African leadership and financial commitment are required to meet this challenge, notwithstanding the weak fiscal situations in many of the worst affected countries in Africa. In this context, a major share of the required funds will have to come from external sources.
There remains today a huge gap between the estimated annual needs of $3-4 billion for HIV/AIDS and current annual expenditures of $0.3-0.4 billion.
Based on a preliminary examination of available data, it is proposed that the needs of Africa be met through a combination of increases in domestic and external financing.
On the domestic side, it is suggested that an amount of $0.8 to $1.6 billion could be mobilized, equivalent to 0.25-0.5 percent of GDP or 1-2 percent of what governments in Africa are currently spending.
The balance of $1.4 to $3.2 billion would be met through a combination of external grants (preferably) and concessional lending.
In this paper, indicative financial targets are proposed for the main institutions providing external support to HIV/AIDS in Africa – bilateral governments, multilateral banks, charitable foundations, and private companies – that together add up to about $2.5 billion annually.
Achieving these targets for increased financing from African governments and from external sources over the next three years is feasible, if all partners act simultaneously and cooperatively to mobilize the ten-fold increase in resources required.
There remains the need to develop rapidly the capacity of African institutions to use expanded financing for HIV/AIDS effectively. In this paper it is suggested that capacity building would be undertaken as part of the significant increase in funding, not as a precondition for it.
With explicit political commitment, backed by the allocation of domestic financial resources and major increases in external funding, Africa can make rapid progress to reverse the course of HIV/AIDS on the continent.
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