Implications of the global financial crisis for the health sector in Africa

Implications of the global financial crisis for the health sector in Africa

Malabo (Equatorial Guinea) 1 September 2010 -- “There is a real danger that funding for health development in the African Region might be adversely affected by the ongoing global financial crisis and thereby compromise any ongoing national and international efforts in many countries to realize the Millennium Development Goals”.

This assessment is contained in a report by WHO Regional Director for Africa, Dr Luis Sambo, to the 60th session of the WHO Regional Committee for Africa taking place in Malabo, Equatorial Guinea.

The report indicates that between 2008 and 2009, Africa’s real average GDP growth rate declined from about 5% in 2008 to 2.8% in 2009, with the total GDP of countries in the African Region shrinking by US$94.48 billion over the same period.

The Regional Director states that the key challenges that countries now needed to address included a decrease in per capita health spending by government, households and donors; reductions in expenditures on maintenance, medicines and other recurrent inputs; a surge in utilization of public health services as utilization of private sector health services decreases; disproportionate decrease in the consumption of health services and food by the poor; inefficiencies in the use of resources allocated to health facilities; lack of institutionalization of National Health Accounts; and lack of evidence of the impact of past economic crises in the African Region.

Dr Sambo says in the report that there is a need for concerted action from African govern-ments and development partners to ensure that domestic and external funding for the health sector is not reduced.

He proposes actions which, taken in appropriate combinations and according to local context, might enable countries to mitigate the negative impact of the financial crisis on health sector funding in Africa.

These actions include: conducting operational research monitoring health impacts and pol-icy responses; intensifying domestic and external advocacy; tracking domestic and external health expenditures, and reprioritizing public expenditure through creating resources for health development by shifting budgetary resources from low priority to high priority areas.

Others are improving financial resource management; improving management of medical supplies; improving health worker/patient interactions.

The others are institutionalizing economic efficiency monitoring within national health management information systems; strengthening social safety nets; increasing private sector involvement; and investing in health systems strengthening using existing and new funding from national and international sources.

Repercusiones de la Crisis Financiera Mundial en el Sector Sanitario de África

For more information, please contact:

Technical contact

Dr Chris Mwisika ; WHO/AFRO, Brazzaville; Tel. +47 241 39388; E-mail: mwsikac [at] afro.who.int (mwsikac[at]afro[dot]who[dot]int)

Media contact

Samuel T. Ajibola, WHO/AFRO, Brazzaville; Tel: (+242) 7700202; + 41 241 39378; E-mail: ajibolas [at] afro.who.int (ajibolas[at]afro[dot]who[dot]int)