UNICEF Supply: look back & future

Transcription

1 UNICEF Supply: look back & future 15 November 2016 UNICEF/UNI199159/Panday

2 2016- Look back Countries continue to introduce additional vaccines: PCV, Rota, IPV, HPV ~ 27M children in MIC- no access to Hib Many children still don t have access to cornerstone vaccines 53 M children in MICno access to PCV LIC/LMIC funding 25% of pentavalent & no Gavi defaults ~40% children access to YF? Collaboration & alignment with partners Polio: gains and setbacks Outbreaks of VPD: YF, Mening, Cholera, Mea. Renewed emphasis on system strengthening Outbreaks of non-vpd: Ebola, Zika Investment in R&D&A and risk sharing Forecast accuracy remains a challenge Healthier vaccine markets compared to 10 yrs- but fragile Humanitarian needs continue to increase

3 UNICEF expenditure by major material groups, 2015 & % of procurement done in collaboration with UN agency or development partner $3.428 billion of supplies and services 100% 95% 100% Vaccines $1.725 billion Gavi, BMGF, WHO, PAHO MSF, CDC Medical supplies $110.4 million WHO, UNFPA, UNDP, GFATM UNITAID, CHAI, MSF, CDC Cold chain $75.6 million Gavi, BMGF, WHO, PAHO 100% 100% 30% Pharmaceuticals $151.4 million WHO, UNFPA, UNDP, GFATM UNITAID, CHAI, MSF Bed nets & insect. $58.7 million WHO, UNFPA, UNDP, GFATM UNITAID Water & sanitation $96.4 million WHO, Oxfam, SAVE, UNHCR > 85% of UNICEF procurement is in collaboration with other UN agencies ($2.9b) > 90% with UN agencies and other development partners ($3.1b) 100% ~30% 30% 100% Nutrition $150.6 million WHO, WFP,, MSF, CIFF Construction $ million SAVE, WB Education $66.1 million SAVE, WB International freight $104.3 million UNDP, UNHCR, UNOPS, WHO

4 US$ Millions Funding channel for UNICEF procurement % Procurement on behalf of partners (i.e. PS funded) has grown in absolute and relative terms % 65% Underscores the evolution of economic development, of donor (supply) financing policies: % 63% Countries in transition Trend towards commodity co-financing 48% Procurement Services Programme 5

5 (US$) Billions UNICEF procurement, relative in context of total UN procurement $ % $9.0 90% $8.0 $7.0 $6.0 $5.0 80% 70% 60% 50% 2x growth in UN procurement over decade UNICEF procurement growing slightly faster than UN $4.0 $3.0 $2.0 24% 24% 31% 40% 30% 20% In 2015, UNICEF became the largest procurer within the UN $1.0 10% $ % Total UN procurement (excl. services) for ~33 reporting agencies UNICEF procurement (excl. services) as % of total UN Sources: UNICEF Supply Division, data on file, 2016 UNGM Annual Statistical Reports on United Nations Procurement, 2009,

6 UNICEF s engagement with governments on strengthening supply chain capacities Predominantly focused on health, nutrition and immunization supply chains

7 System Strengthening Visibility for Vaccines, ViVa - UNICEF orders + country forecasts + country stock levels = a visualization of consumption trends and stock projections - Today, 9 countries are using ViVa (Afghanistan, DRC, Kenya, Lesotho, Myanmar, Senegal, Somalia, Uganda, Niger) with good success and another 6 are very advanced in their onboarding so we expect them to be using ViVa by the end of the year. Gavi Alliance Immunisation Supply Chain Strategy (Board endorsed Jan 2015) - UNICEF is supporting 58 countries improve different aspects of their supply chains, from cold chain equipment needs assessment to establishing their National Logistics Working Group, from making progress in their EVM improvement plan to integrating their immunization logistics management information system with that of other health programmes. Gavi Cold Chain Equipment Optimisation Platform (launched by Gavi in 2016) - To increase capacity and optimise product selection (e.g., solar)

8 Supply Financing Solutions To respond to these needs, we ve conducted activities through 4 workstreams: Impact on Countries Country Financing Pre-Financing Grants and MoH Budgets Increasing Gov t Fiscal Space ~$60m worth of transactions pre-financed in 2016 YTD VII Expansion & USF s Bridge Fund related to PS Nigeria $21m credit line for Routine Immunization Support country-owned budgeting and sustainability initiatives Facilitate implementation of local public-private trust funds; access to commercial markets Addressing cash flow timing gaps Increasing availability of funds / budgets Supply Financing Special Contracting Local Supplier Base Development Special Contracting Additional models to achieve firm contracts including multiple partial-firm models, optionbased models Support access of new suppliers in programme countries to financing via leveraging UNICEF s network, convening ability and credit profile Healthy markets, lower prices, secured quantities Lower prices + domestic economic development

9 Changing contexts & new Global Goals Megatrends

10 Sustainable Development Goals (bio)pharma related Reduce the global maternal mortality ratio to less than 70 per 100,000 live births End preventable deaths of newborns and children under 5 years of age End the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases Combat hepatitis, water-borne diseases and other communicable diseases Reduce by 1/3 premature mortality from non-communicable diseases Ensure universal access to sexual & reproductive health-care services Achieve universal health coverage, including access to safe, effective, quality and affordable essential medicines & vaccines for all Support the research and development of vaccines & medicines for the communicable & NCD diseases that primarily affect developing countries Provide access to affordable essential medicines and vaccines, in accordance with the Doha Declaration on the TRIPS Agreement and Public Health Substantially increase health financing and the recruitment, development, training and retention of the health workforce in developing countries Strengthen the capacity of all countries for early warning, risk reduction and management of national and global health risks

11 Draft Goal Areas for UNICEF Strategic Framework EVERY CHILD SURVIVES AND THRIVES EVERY CHILD LEARNS EVERY CHILD IS PROTECTED FROM VIOLENCE AND EXPLOITATION EQUITY: EVERY CHILD HAS A FAIR CHANCE IN LIFE EVERY CHILD LIVES IN A SAFE AND CLEAN ENVIRONMENT

12 GPS 2030: the future of UNICEF s supply function Convene a meeting of participants representing the breadth and depth of UNICEF to reflect on the current state of supply, the future needs of children and contexts, and draft a working vision for UNICEF s supply function through 2030.

13 A key part of the GPS 2030 discussion was around 9 thought pieces to analyse UNICEF s supply function contribution to the future The influencers Political Products & Markets future The MDG springboard The SDG prism Technology Socio-Economic Demographic Humanitarian-Development Science of Delivery Countries in Transition Environment Identity Capacity Development Global-Local Future Workforce Vulnerability Financing-Domestic Private-Public Private Sector Information Communication Sustainability 23

14 Synopsis of Supply Function Thought pieces Adolescents Do the future programmes for youth include a product, services and market component? What leverage do we have with industry to address youth employment? Supply Technical Hubs Is there expertise on products, market, systems, data, financing, quality, regulatory issues that can be placed closer to the place of need? What are the options, challenges and risks? Financing & Domestic Resources The SDG represent an increased demand for resources for children. How can UNICEF influence domestic resources, local private sector and ODA to prioritise budgeting for children? Bearing in mind our mandate, broad appeal and our possible niche in new financing (with a lot to contribute, particularly on supply financing), how do we navigate within the context of new donors, other agencies and partners and avoid a zero-sum game (i.e., one sector wins at the expense of another) whilst at the same time not losing advocacy on specific sectors? Countries in transition Many countries are in transition due to positive economic growth (e.g., LMIC-to-UMIC; UMIC-HIC) while others are being set-back by natural disasters, climate change or conflict. How can UNICEF stay agile and responsive to changing needs? Are there areas of expertise or assets that UNICEF has that could contribute in particular in HIC or fragile contexts? context? Sustainable procurement Growing consumer awareness is forcing commercial entities to rethink the way they produce, source and transport products and how they access markets. What considerations should UNICEF be making and how far are we, donors, recipient governments and communities willing to make trade-offs to balance economic, social and environmental goals? A Fit-for-Future workforce UNICEF is global, diverse, multi-cultural, - lingual, -disciplined & is ideally positioned to meet the future. Should we be more deliberate to define and support the evolving needs of our staff to contribute to the programme & results of the future, at all levels of the organisation? 25

15 Synopsis of Supply Function Thought pieces Products &Markets Identify What new products, services are relevant to the SDG.; What market barriers prevent access; support the demand for local/on-continent production; move from a market-taker to a market-shaper in more areas. The global economy gives UNICEF unprecedented access to new products, research, expertise and markets. UNICEF is influencing global and local markets and driving innovation for children including adolescents. Establish and pursue a proactive pipeline of products, markets & services that are core to achieving results or represent barriers. Humanitarian-development continuum What are practical actions we can take include humanitarian preparation to our development programmes and include development perspectives in our emergency response? What explicit links are needed to help behaviours cross this nexus? SF has prepared staff, adequate supplies and supply chains that are speedy, adaptive, innovative, resourced & working as one-team (across borders, across UNICEF) Private sector: beyond the role of supplier or donor The private sector is arguably the biggest creator of employment and economic growth, is a driver of innovation, product development, systems design, organization efficiency, and a source of resources. How can UNICEF influence local private sectors to posture their competencies toward the needs of children and the SDG. Do we sufficiently call on the private sector as a duty bearer, social and environmental goals? Science of Delivery Our approach and decisionmaking for transforming $billions into results for children are largely designed on lessons of the past. Should we take a more scientific approach to selecting how we make these transformations occur via the wide range of modalities we use? Capacity Development National systems and economies continue to grow; the SDGs drive toward a world in 2030 in which the balance of power would have shifted to programme countries. During this period of rapid transition, how can UNICEF contribute to quality, efficient, national systems that serve children, including the most vulnerable and marginalised? Can we provide servicedelivery that is postured toward capacity development? 24

16 Establishing a Markets & Products futures through 2030 SDGs Climate Change, Urban, Migration, NCDs, Neglected diseases, GNI relevance, other macro trends UNICEF Outcome Areas & Results - Scale-up of core programmes - New products, services, & markets, incl. local - Service delivery modes, incl. self procurement 33

17 Health Emergencies Preparations Initiative (HEPI)- UNICEF disease prioritisation

18 Products & Markets for children UNICEF is influencing global and local markets and driving innovation for children including adolescents Establish a R&D pipeline of targets to drive investments from private & public sectors to meet the needs of children Reduce lag time between programme design and product availability via a healthy market. Work in parallel with not sequentially with view to scale Strategic engagement with industry / corporate sector, at Executive level within UNICEF Set specific time-bound targets (e.g., for HEPI, children in MIC access, etc.) Design for market high opportunity (new product launch) & high risk moments (shortages, etc.) including to ensure resilience Make the Pipeline publicly available to industry and partners, open for debate/improvement. Emphasize local markets. Country specific visions, e.g., Products & Markets for the Chinese child Support niche issues. e.g., Adolescents, emerging MIC needs, etc. Establish minimum standards and design principles (e.g. refugee camps, for resilience) 32

19 Thank you! 25