Mobilizing Additional Resources for the GFATM: Replenishment Update

Oslo, March 2007

Prepared by the Private Sector Delegation to the Board of The Global Fund to Fight AIDS, Tuberculosis and Malaria

Private Sector OverviewResource Mobilization Priorities

1. Corporate Contributions• Product and Service Donations• Co-Investments• Cash Contributions• Integrated Partnerships

2. Consumer Contributions through Corporate Partners• Red• Hope Spreads

3. Other Private Sector Contributions• Friends of the Global Fund Organizations• Private and Public Foundations• High Net Worth Individuals

Product & Service Donations – 2006 Overview

• In 2006 The Global Fund received US$ 6.5 million in pro bono services from the private sector

• Standard Chartered Bank (financial management services to PR, SR and CCMs)

– Gambia, Philippines, India, and Nigeria• A new direction to expand services to the field

Pro Bono Value Company Service description

US$ 6,000,000 VH1 Advertising and marketing services

198,000 Billboard Bands Advertising and marketing services

145,000 Publicis Group Advertising and marketing services

80,375 AKQA Advertising and marketing services

50,699 Getty Images Advertising and marketing services

US$ 6,474,074  

1. Corporate Contributions

1. Corporate Contributions

Product & Service Donations – Policy Development

• 14th Board approved the establishment of joint steering committee to further investigate the contribution of products and services

• Recommendations for policy options to be presented at November 2007 Board Meeting– Private sector input vital to outline the conditions

under which companies can be encouraged to contribute

• Supported by World Economic Forum, Global Health Initiative – Dr. Francois Bonnici

Co-Investments

Successful, but limited number of partnerships reported in 2006:

• Tanzania (Unilever Tea) • Niger (Areva)• Malawi (Malawi Business Coalition against HIV/AIDS)• Uganda (PART Project)

Need for implementation of the core Global Fund Principle:“The Fund will support proposals which focus on the creation, development and expansion of governments/private/NGO partnerships.”

1. Corporate Contributions

Cash Contributions

• In 2006 cash contributions remained limited in size and scope

• Need for integrated approach and incentives to private sector going forward

• Creation of Corporate Champions Program to offer such integrated approach

1. Corporate Contributions

Integrated Partnerships

Corporate Champions Program• New platform for integrated partnerships with major businesses• Emphasis on sustainability and creating value for all parties• Partnerships built from core and opt-in elements including:

– targeted financial contributions– in-country collaborations– employee engagement– communications and marketing co-operation– leadership activities

• Announcement of first Global Fund Corporate Champions at Berlin replenishment conference

1. Corporate Contributions

2. Consumer Contributions through Consumer Partnerships

(Product) RED Launch

• Cause related marketing campaign• Raised consumer awareness 20%• Launched January 2006• Contributed over $18 million to date• Includes: AMEX, Apple, Converse (Nike), Gap, Giorgio

Armani, Motorola + other partners

2. Consumer Contributions through Consumer Partnerships

2. Consumer Contributions Through Corporate Partners

“Hope Spreads Faster than AIDS”

• Focuses on distribution and communications channels to engage support of consumers

• Includes: email, the web, postage, metered mail and mobile communications

• Launched in Toronto at International AIDS Conference (Aug. 06)

• Commercial roll out planned in 2007

Hope Spreads2. Consumer Contributions through

Consumer Partnerships

“Hope Spreads Faster than AIDS”

Friends of the Global Fund Organizations (FOF)

Friends expand regional capacity to mobilize resources from the private and public sectors.

Supported primarily by the private sector

• FOF USA• FOF Europe• FOF Japan• FOF Africa (launched in 2006)

3. Other Private Sector Contributions

Opportunities for Growth

How to expand private sector engagement?

• Expanded opportunities for targeting will attract additional donors

• Increased awareness of Global Fund through Red and Hope Spreads will attract additional donors

• Accepting and recognizing donations of products and services will greatly add to resources and integrated partnerships

• Implementation of the core Global Fund principles will expand private sector engagement in co-investments and in-country support

Private Sector InvolvementSummary

1. New pro-bono services from diverse set of companies with in-country focus

2. Process proposed for advancing policy recommendations on the contribution of products and services

3. Successful co-investment partnerships, but limited in number

4. Launch of Corporate Champions Program to raise direct cash contributions

5. Successful growth of (Product) RED

6. Roll out of “Hope Spreads Faster than AIDS” in 2007