The Republic of South Africa joins the International Finance Facility for Immunisation as its seventh government donor
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London, 16 March 2007 - The Republic of South Africa today joined the International Finance Facility for Immunisation (IFFIm), becoming its seventh government donor, along with France, Italy, Norway, Spain, Sweden and the UK.
We're very proud to be the first emerging market country donor to contribute towards this initiative and indeed this is an extension of our efforts to support development in other countries.
Lesetja Kganyago, Director General, National Treasury, Republic of South Africa
First emerging market country donor
"We are pleased to provide USD 20 million to IFFIm for immunisation and health projects in developing countries. We're very proud to be the first emerging market country donor to contribute towards this initiative and indeed this is an extension of our efforts to support development in other countries," said Lesetja Kganyago, Director General, National Treasury, Republic of South Africa.
"We very much appreciate South Africa's leadership, as an emerging market country, in becoming a sovereign donor to IFFIm," said Alan Gillespie, Chairman of IFFIm's Board.
South Africa will contribute $20 million, paying $1 million annually to IFFIm over 20 years.
One of the great strengths of IFFIm's funding is that it is, by design, predictable over the long-term. Assured long-term funding helps partner countries to move forward with long-term planning, strengthening immunisation programmes and the supporting health system infrastructure.
"South Africa's sponsorship is a vote of confidence in IFFIm's ability to provide predictable financing for immunisation and to strengthen health systems in developing countries," said Susan McAdams, World Bank manager in charge of treasury management services to IFFIm.
Supporting GAVI Alliance programmes
Over the next ten years, IFFIm, rated AAA/Aaa/AAA, plans to raise funds in the capital markets to finance an estimated total amount of up to US$ 4 billion in disbursements for immunisation and health programmes in 70 developing countries through the GAVI Alliance. IFFIm funds go to the purchase and distribution of vaccines as well as to meet the needs that countries identify as "bottlenecks" to getting immunisation to children. It is anticipated that IFFIm will support the immunisation of 500 million people, preventing 5 million child deaths and more than 5 million future adult deaths. IFFIm makes grant disbursements from its operating funds through GAVI Alliance programmes.
The GAVI Alliance is a private-public partnership accelerating delivery of life-saving immunisation to the world's poorest children. By the end of 2006, it was estimated that 2.3 million additional premature deaths had been prevented. The innovative structure of GAVI was designed to provide predictable, long-term development financing for immunisation quickly and efficiently. GAVI Alliance members include a wide range of development partners: developing country and donor governments, WHO, UNICEF, the World Bank, the vaccine industry (from industrialised and developing countries), research and technical agencies, NGOs, the Bill & Melinda Gates Foundation, and The GAVI Fund - the resource and financing arm of GAVI.
About the GAVI Alliance
The GAVI Alliance is a public-private partnership that aims to immunise children and strengthen health systems in the world's poorest countries. It brings together developing country and donor governments, the World Health Organization, UNICEF, the World Bank, the vaccine industry in both industrialised and developing countries, research and technical agencies, NGOs, the Bill & Melinda Gates Foundation and private philanthropists. GAVI provides vaccines against diphtheria, tetanus, pertussis combined with haemophilus influenzae type b and hepatitis B as so-called pentavalent (five antigens in one vaccine) as well as vaccines against measles, yellow fever, pneumococcal diseases (pneumonia and meningitis) and rotavirus (diarrhoea).
International Finance Facility for Immunisation Company (IFFIm) is a multilateral development institution created to accelerate the availability of predictable, long-term funds for health and immunisation programmes through the GAVI Alliance (formerly the Global Alliance for Vaccines and Immunisation) in 70 of the poorest countries around the world. IFFIm was created as a development financing tool to help the international community achieve the Millennium Development Goals. IFFIm's financial base consists of legally binding grants payments from its sovereign sponsors (France, Italy, Norway, South Africa, Spain, Sweden and the UK), on the basis of which IFFIm's is rated AAA/Aaa/AAA (Fitch/Moody's/S&P). The World Bank is the Treasury Manager for IFFIm. IFFIm was established as a charity with the Charity Commission for England and Wales and is registered in England and Wales as a company limited by guarantee with number 5857343 and as a charity with number 1115413.
About the World Bank
The World Bank is a global development cooperative owned by 187 member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their national economies and to find effective solutions to pressing regional and global problems in economic development and environmental sustainability. The goal is to help overcome poverty and improve standards of living for people worldwide. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody's/S&P), is the oldest and largest entity in the World Bank Group and provides funding, risk management tools and credit enhancement to sovereigns. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is also the Treasury Manager for IFFIm. In that capacity, the World Bank, as IFFIm's agent, manages IFFIm's finances according to prudent policies and standards. This includes IFFIm's funding strategy and its implementation in the capital markets, rating agency and investor outreach, hedging transactions and investment management. The World Bank also coordinates with IFFIm's donors and manages their pledges and payments as well as IFFIm's disbursements for immunisation and health programmes through the GAVI Alliance.
This press release is not an offer for sale of Notes of the International Finance Facility for Immunisation Company ("IFFIm"), in the United States. The Notes are not being registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to US persons except pursuant to an applicable exemption from such registration. Any offering of the Notes will be made only by means of a prospectus containing detailed information regarding IFFIm and its management, including financial statements. Such prospectus will be made available through IFFIm. This press release does not constitute an offer for sale of the securities described. The offering and sale of the securities described in this document are subject to restrictions under the laws of several countries. Securities may not be offered or sold except in compliance with all such laws.
World Bank (Treasury Manager): Rachel Winter Jones, Tel. +33 1 40 69 30 52
National Treasury, Republic of South Africa: Thoraya Pandy, Tel +27 82 416 8416