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In 2001, African Union heads of state pledged to allocate at least 15% of annual expenditure to health under the Abuja Declaration. They also urged donor countries to fulfil the yet to be met target of Overseas Development Assistance (ODA) to developing countries equivalent to 0.7% of Gross National Income (GNI). This commitment acknowledged the key role played by public funding to ensure sustainable and equitable health coverage. The alignment of high level African leaders on prohealth commitments was an important first step in the Millennium Development Goals era and remains a unique initiative in the history of financing health and social goals. Fifteen years later, most African governments have increased the proportion of total public expenditure allocated to health. In addition, the average level of per capita public spending on health rose from about US$70 in the early 2000s to more than US$160 in 2014 (Parity Purchasing Power).
PPP
Health is predominantly financed by domestic resources in Africa. External aid has increased from 13% to 24% of total health expenditure over the same period. But it is too early to declare victory. Moving towards spending targets, though important, is not enough. Indeed, by focusing too much attention on reaching certain expenditure levels, policy makers may actually lose sight of other challenges, such as improving the way existing resources are allocated and used in the health sector. The adoption of the Addis Ababa Action Agenda on Financing for Development and of the new Sustainable Development Goals (SDGs) in the second half of 2015 has been accompanied by a growing recognition of the need to explore the nature of the resources available and the use to which they are put, rather than focusing solely on the volume of resources required to make progress toward UHC. In particular, how public monies are allocated, spent and used has a direct impact on the level of coverage and financial protection as well as on equity.
Public Financing for Health in Africa: from Abuja to the SDGs
| Friday, 26th of August 2016 |
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Public Financing for Health in Africa: from Abuja to the SDGs
© World Health Organization 2016 All rights reserved.
Excerpt below; full text is at http://apps.who.int/iris/bitstream/10665/249527/1/WHO-HIS-HGF-Tech.Report-16.2-eng.pdf
In 2001, African Union heads of state pledged to allocate at least 15% of annual expenditure to health under the Abuja Declaration. They also urged donor countries to fulfil the yet to be met target of Overseas Development Assistance (ODA) to developing countries equivalent to 0.7% of Gross National Income (GNI). This commitment acknowledged the key role played by public funding to ensure sustainable and equitable health coverage. The alignment of high level African leaders on prohealth commitments was an important first step in the Millennium Development Goals era and remains a unique initiative in the history of financing health and social goals. Fifteen years later, most African governments have increased the proportion of total public expenditure allocated to health. In addition, the average level of per capita public spending on health rose from about US$70 in the early 2000s to more than US$160 in 2014 (Parity Purchasing Power).
PPP
Health is predominantly financed by domestic resources in Africa. External aid has increased from 13% to 24% of total health expenditure over the same period. But it is too early to declare victory. Moving towards spending targets, though important, is not enough. Indeed, by focusing too much attention on reaching certain expenditure levels, policy makers may actually lose sight of other challenges, such as improving the way existing resources are allocated and used in the health sector. The adoption of the Addis Ababa Action Agenda on Financing for Development and of the new Sustainable Development Goals (SDGs) in the second half of 2015 has been accompanied by a growing recognition of the need to explore the nature of the resources available and the use to which they are put, rather than focusing solely on the volume of resources required to make progress toward UHC. In particular, how public monies are allocated, spent and used has a direct impact on the level of coverage and financial protection as well as on equity.
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