Learn more about GAVI's International Finance Facility for Immunisation (IFFIm) by viewing the slideshow or scrolling down to read some frequently asked questions.
GAVI/09/Olivier Asselin
By raising funds on money markets to purchase life-saving vaccines for developing countries, the International Finance Facility for Immunisation (IFFIm) is building a lifeline from the world’s rich investors to its poorest children.
GAVI/08/Jay Louvion
IFFIm Board chairman Alan Gillespie explains to investors how IFFIm “frontloads” aid commitments pledged by donor governments over the next 20 years, using their guarantees to raise funds immediately on capital markets. Governments will reimburse the money with their future aid flows.
GAVI/09/Dan Thomas
With a triple-A rating, IFFIm promises investors like Keiko Aoshima a solid return. “With other bonds, you never really know how your money will be used but this investment will be used for human good. Vaccine bond sales in Tokyo in January 2009 raised US$429 million.
IFFIm’s initial offering in November 2006 raised US$1 billion among institutional investors around the world. A second offering in March 2008 raised US$223 million from private individuals in Japan.
GAVI/08/Olivier Asselin
As a guaranteed source of predictable funding, IFFIm gives Health Ministries in developing countries confidence to make long-term investments in immunisation programmes, such as strengthening vaccine delivery systems or training health workers.
GAVI/07
In 2007, US$101.7 million of IFFIm funds encouraged developing countries to apply to GAVI for access to new vaccines. “IFFIm has made it possible for us to support countries for as long as 10 years” says Julian Lob-Levyt, GAVI’s Chief Executive Officer.
GAVI/07/Edy Purnomo
IFFIm’s provision of long-term funding also acts as an incentive for the vaccine industry to invest the large sums of money necessary to develop and manufacture vaccines for poorer countries.
GAVI/09/Olivier Asselin
Nothing better illustrates the benefits of secure, long-term funding than the pentavalent vaccine, which immunises children against diphtheria, tetanus and pertussis, hepatitis B and Hib.
GAVI/08/Dominic Chavez
With US$181 million of IFFIm funds disbursed for pentavalent in 2006-7, the number of countries applying for GAVI support has almost doubled since 2006. The availability of IFFIm funds for pentavalent until 2015 is also encouraging new manufacturers to enter the market.
GAVI/08/Olivier Asselin
Mothers at the Barumbu Mother & Child Centre in Kinshasa in the Democratic Republic of Congo discuss immunisation with a health worker. In 2007, GAVI channeled US$88.3 million of IFFIm funds into strengthening health systems so they are better equipped.
WHO/08/Olivier Asselin
The IFFIm lifeline’s final destination: a young boy is vaccinated against yellow fever in Togo, one of 1.3 million people targeted in an emergency immunisation campaign. In 2007, IFFIm funds helped build up a regional stockpile of yellow fever vaccine for west African countries.
Photographic Service L'Osservatore Romano/09
In February 2009, British Premier Gordon Brown, who helped pioneer IFFIm, visited Pope Benedict XVI to commemorate the Vatican’s purchase of the first vaccine bond in 2006. IFFIm is expected to provide US$4 billion to protect 500 million children in over 70 countries from deadly diseases.
What is GAVI?
Launched in 2000 thanks to a grant from the Bill & Melinda Gates Foundation, the GAVI Alliance brings together key public and private sector organizations involved in immunisation and health system support.
Members include: the World Health Organization (WHO), UNICEF, the World Bank, the Bill & Melinda Gates Foundation, developing country governments, donor governments, civil society organizations (CSOs), the Vaccine industry in industrialized and emerging economies, research and technical agencies and private individuals.
The Alliance aims to close the historic gap between the development of life-saving vaccines and their implementation in the developing world. By December 31 2008, WHO estimated that GAVI support for immunization had helped prevent more than 3.4 million future deaths.
What does each partner offer GAVI?
The Alliance draws on the specific strengths and networks of its members. Examples include:
WHO: provide developing governments with technical support to shape immunisation programmes and monitor their results;
UNICEF: procures vaccines on behalf of GAVI;
Vaccine specialists: advise GAVI which new and underused vaccines to support;
Civil Society Organisations: use local networks to help deliver vaccines in developing countries.
For which deadly diseases does GAVI provide vaccine support?
GAVI funds developing countries to provide vaccines against diphtheria, tetanus, pertussis, hepatitis B, diarrhoea, meningitis, yellow fever and pneumonia. GAVI money is also used to strengthen country health systems.
What has been GAVI’s impact since it was established in 2000?
From 2000-2008, WHO estimates that GAVI support has provided 213 million children with protection from vaccine-preventable diseases. In total, this has prevented 3.4 million future deaths.
Thanks to GAVI, some 192.2 million children have been immunised against Hepatitis B; 41.7 million children have received Haemophilus influenzae type b (Hib) vaccine; and, 35.6 million are now protected against yellow fever.
Open application process: GAVI allows all countries with Gross National Income that was less than US$ 1,000 in 2003 to apply for its funding.
Long-term funding: by making multi-year commitments to purchase new and under-used vaccines, GAVI has given health ministries in developing countries an incentive to plan long-term immunisation. The vaccine industry is also more interested in making the large-scale investments necessary to research and develop vaccines.
Developing countries in charge: GAVI recognises that national governments are best placed to decide their own health programmes. GAVI support is structured so countries are free to spend funding where it will be most useful.
Sustainability: GAVI’s co-financing policy ensures that developing countries purchase some required vaccine doses with their own funding. This promotes sustainability of country immunization programmes.
What is IFFIm and what is its relationship to GAVI?
As a public-private alliance, GAVI draws on ‘best practices” in the business sector to find viable alternatives to the limitations of short-term development aid. The Alliance has pioneered the International Finance Facility for Immunisation (IFFIm) as a means to “frontload” aid commitments pledged by donor governments over 20 years.
IFFIm uses government guarantees to raise funds immediately by issuing bonds on the capital markets. GAVI uses thesefunds to purchase vaccines and provide support to strengthen national health systems.
IFFIm’s inaugural “vaccine bonds” , issued in London in 2006, were bought by a broad range of institutional investors including several central banks, pension funds, fund managers, and insurance companies. In total, US$ 1 billion was raised for immunisation. In March 2008 Japanese retail investors welcomed IFFIm’s debut bond offering in the Japanese retail market, raising US$ 223 million, and in February 2009 an offering to Japanese retail investors raised a further US$ 429 million.
Why is a “Vaccine Bond” a sound investment for the future?
With approximately 2.3 million children dying annually from easily preventable diseases, vaccination is one of the most cost-effective health investments. Vaccines can be delivered to even the most remote communities in developing countries.
How does GAVI spend IFFIm funding?
In 2007, US$204.7 million of IFFIm funding supported GAVI’s efforts to accelerate access to life-saving vaccines in the world’s poorest countries. An additional US$88.3 million was allocated for GAVI’s health system strengthening (HSS) programme to support immunisation delivery and coverage.
His Holiness Pope Benedict XVI; Her Majesty Queen Rania Al-Abdullah of Jordan; Cardinal Renato Raffaele Martino; Archbishop of Canterbury, Dr Rowan Williams; Chief Rabbi, Dr Jonathan Sacks; Iqbal Khan of the Muslim Council of Britain; Ramesh Khalidi of the Hindu Forum; Indrajit Singh OBE of the Sikh Council of Britain as well as rock stars Bono and Bob Geldof.
How else is GAVI funded?
In addition to a cumulative US$1.51 billion from its founding partner, the Bill & Melinda Gates Foundation, GAVI also relies on public financing commitments from governments and the European Commission, as well as private donations.