NOTE: The INVEST project closed in September 2024. This page is no longer being updated.
Over the last half century, USAID programming has resulted in tremendous gains in global health. Around the world, these activities have saved lives, protected vulnerable populations from disease, decreased infant and maternal mortality rates, and promoted stable communities.
However, much work still needs to be done. Global health care systems were understaffed and underfunded before COVID-19 emerged – and the pandemic has worsened conditions and exacerbated weaknesses. In 2016, low- and middle-income countries needed an estimated $134 billion in additional funding to achieve health targets set by the Sustainable Development Goals; this amount is expected to triple by 2030. By that time, a projected five billion people will lack access to essential health services, such as medical care, medicine, and even running water in hospitals.
In short, traditional grant funding alone is not sufficient: it cannot fill these gaps nor address the challenges that global health programs aim to solve. However, by working with private sector partners, donors and development agencies can create innovative solutions for improving health outcomes and use the world’s deepest pools of capital to finance them.
Engaging the Private Sector to Help Fill Health Financing Gaps
USAID and other donors can play a key role in catalyzing private sector engagement for addressing infectious diseases and strengthening health systems. Donors can foster incentives for public and private sector actors to collaborate and accelerate investments to support infectious disease prevention, detection, and response. Many areas of health care are managed by the public sector for policy reasons, while other areas are challenging to make commercially attractive, requiring ongoing public support. Yet private actors already provide leadership in the health sector, and many more opportunities for private sector action and investment exist.
Additional Resources for Catalyzing Health Finance
- Using Blended Finance to Solve Global Health Challenges
- Tanzania Looks to Blended Finance Solution for Hospital Network Modernization
- Responding to Vietnam’s Healthcare Challenges: Bolstering Sustainable Funding Models for Community-Based Organizations and Social Enterprises
- Health Tech Is Not a Fad; It’s Desperately Needed — an Interview with LifeBank
- A Well-Timed Investment: How Investing in Tech-Driven Healthcare SMEs Is Boosting Africa’s COVID-19 Response
- “There is a World of Opportunity When It Comes to Healthcare in Africa” — An Interview with Sona Shah, the CEO of Neopenda