By Alick Ponje:
World Health Organisation (WHO) Director for Health Financing and Economics, Kalipso Chalkidou, has warned that the world is facing a health financing emergency.
Speaking at a regular press briefing for humanitarian agencies in Geneva, Switzerland, Chalkidou cautioned that as wealthier nations implement deep spending cuts, both international aid and national health systems are experiencing serious disruption.
She cited recent decisions by the United States (US), several European governments and European Union bodies to freeze or reduce health aid.
WHO forecasts suggest that global health investment is likely to fall by up to 40 percent this year, dropping by $10 billion from just over $25 billion in 2023.
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“The estimated $15 billion spent on health aid would bring the figure down to the lowest level in a decade,” the health agency said.
It added that the funding shortfall is creating a health financing emergency in many developing countries, particularly in sub-Saharan Africa, which depend on external aid to fund their health systems.
“In numerous countries, US-financed healthcare programmes were the primary source of external aid, accounting for as much as 30 percent of current health spending in countries like Malawi and around 25 percent in Mozambique and Zimbabwe,” WHO said.
The agency further raised concerns about rising debt burdens, saying many sub- Saharan African nations are grappling with soaring debt, with some spending twice as much on debt servicing as on health, making the reallocation of resources difficult.
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It quoted Chalkidou referencing a WHO survey indicating that countries are now reporting health service disruptions “not seen since the peak of Covid-19”.
To address the crisis, WHO has urged countries to reduce aid dependency, increase revenue through improved taxation including health taxes on products like tobacco and alcohol, and collaborate with multilateral banks to secure low-interest loans for cost-effective health investments.
Following the abrupt withdrawal of support from the US Agency for International Development (USAid), Malawi is facing disruptions across its public health, economic and development sectors.
The exit has triggered a challenge particularly in healthcare, where preliminary reports suggest the impact has been both immediate and severe.
USAid’s funding was crucial in sustaining HIV treatment programmes, maternal health services and staffing at numerous clinics across the country.
The government, however, insists it is doing everything possible to bridge the gap left by the aid cuts, although thousands of people employed through USAid-funded initiatives have already lost their jobs.
Authorities have since called for a shift towards economic self-reliance, with an emphasis on entrepreneurship and partnerships with alternative international donors.
