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Understanding the Global Fund's Financing Mechanism

The Global Fund has recently approved significant changes to its grant-making processes. A New Funding Model, replacing the former rounds-based model, was approved in a series of decision points at the September and November Board Meetings. A transitional period in 2013 will pilot aspects of the new model in a number of countries, prioritizing those that are underfunded, are at risk of service disruptions, are in a position to achieve rapid impact, and represent a diverse cross-section of country contexts.

The proposed reforms to the funding model are in alignment with the Board’s 2012-2016 strategy to maximize the impact of investments and prioritize countries with the greatest disease burden and least ability to pay. The goal of the new model is to simplify and expedite grant application processes to obtain better and more measurable results. Implementers will be able to submit succinct grant proposals (“concept notes”) in parallel with their national planning cycles. The visual representation below explains how the new model will function:

* Allocation by band is the sum of allocations to all countries in the band, based on a Board-approved formula.

** Country dialogue to be held between the Global Fund Secretariat and Country Coordinating Mechanisms, country governments, private sector companies, civil society organizations and technical partners.

*** Indicative vs. Incentive Funding:

  • Indicative: General funding for prioritized need
  • Incentive: to elicit ambitious proposals and full expressions of demand

For additional information regarding the new model, the former Rounds-based model and steps involved in obtaining a grant from the Global Fund, please click here.