Abstract
BackgroundAlthough procurement consumes nearly 40% of Global Fund’s money, no analyses have been published to show how costs vary across regions and time. This paper presents an analysis of malaria-related commodity procurement data from 79 countries, as reported through the Global Fund’s price and quality reporting (PQR) system for the 2005–2012 period.MethodsData were analysed for the three most widely procured commodities for prevention, diagnosis and treatment of malaria. These were long-lasting insecticide-treated nets (LLINs), malaria rapid diagnostic tests (RDTs) and the artemether/lumefantrine (AL) combination treatment. Costs were compared across time (2005–2012), regions, and between individual procurement reported through the PQR and pooled procurement reported through the Global Fund’s voluntary pooled procurement (VPP) system. All costs were adjusted for inflation and reported in US dollars.ResultsThe data included 1,514 entries reported from 79 countries over seven years. Of these, 492 entries were for LLINs, 330 for RDTs and 692 for AL. Considerable variations were seen by commodity, although none showed an increase in cost. The costs for LLINs, RDTs and AL all dropped significantly over the period of analysis. Regional variations were also seen, with the cost for all three commodities showing significant variations. The median cost for a single LLIN ranged from USD 4.3 in East Asia to USD 5.0 in West and Central Africa. The cost of a single RDT was lowest in West and Central Africa at US$ 0.57, and highest in the Latin American region at US$ 1.1. AL had the narrowest margin of between US$ 0.06 per tablet in sub-Saharan Africa and South Asia, and US$ 0.08 in the Latin American and Eastern Europe regions.ConclusionThis paper concludes that global procurement costs do vary by region and have reduced overall over time. This suggests a mature market is operating when viewed from the global level, but regional variation needs further attention. Such analyses should be done more often to identify and correct market insufficiencies.
Highlights
Procurement consumes nearly 40% of Global Fund’s money, no analyses have been published to show how costs vary across regions and time
There was an overall annual increase in number of purchases reported through the price and quality reporting (PQR), with the 2003 – 2005 period having less than 100 entries, and the period after 2011 having more than 400 entries per year
Comparing median costs by Global Fund region The median cost for long-lasting insecticide-treated nets (LLINs) ranged from USD 4.3 in East Asia to USD 5.0 in the sub-Saharan Africa- West and central Africa (SSA-WCA) region (Table 1)
Summary
Procurement consumes nearly 40% of Global Fund’s money, no analyses have been published to show how costs vary across regions and time. This paper presents an analysis of malaria-related commodity procurement data from 79 countries, as reported through the Global Fund’s price and quality reporting (PQR) system for the 2005–2012 period. The numbers have reduced gradually over the past decade It is estimated, for instance, that malaria deaths have reduced by a third in sub-Saharan Africa over the period [1]. For instance, that malaria deaths have reduced by a third in sub-Saharan Africa over the period [1] These successes can be attributed to the combined efforts of governments, civil society and private sector, with support from bilateral and Nearly 40% of Global Fund money disbursed to countries goes towards procurement, making it a major player in the market for commodities. VPP procurement information is not entered into the PQR system
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