This August, 14 African countries gathered for the World Health Organization (WHO)’s first-ever Investment Round — the agency's innovative new fundraising approach seeking to reinvigorate its finances. Collectively, these countries pooled together a pledge worth $45 million to help the agency continue its critical work in global health.
As the world’s leading international public health agency, WHO requires substantial financing to do its work. WHO is the specialized agency of the United Nations (UN) charged with overseeing international public health and well-being. Its budget historically has, for the most part, depended on donations from public and private sources in the form of short-term grants. But now, its newly launched Investment Round offers a chance for stakeholders to make multi-year pledges upfront, giving WHO’s budget more flexibility as it confronts whatever health challenges or emergencies spring up in the future.
The agency is aiming to lock down at least $7.1 billion in financing for the next four years. This money will allow WHO to finance initiatives like developing and distributing vaccines, combating the rise of antimicrobial resistance, and strengthening health systems in countries that need it most — but to do so, the agency is upending its financing model to foster a more sustainable budget to accomplish its mission.
Read on to find out exactly how the Investment Round endeavors to do this.
First Off — What Does WHO Do Exactly?
With 150 field offices worldwide, WHO is at the center of the global health system.
Since its founding in 1948, WHO has provided technical assistance to countries, set international health standards, monitored and collected data on emerging health issues, and acted as a forum for distributing policy information and recommendations.
It’s also played a pivotal role in several historic public health achievements over the decades. Highlights include: the eradication of smallpox, the Global Polio Eradication Initiative, and their involvement in the research and development of vaccines against diseases such as Ebola and malaria.
How is WHO Usually Funded?
Part of WHO’s funding comes from dues paid by 196 countries annually in order to be members of the organization. Each country’s dues are based on a percentage of their gross domestic product (GDP). This money serves as a reliable baseline of financing that WHO can depend on every year, no matter what.
WHO’s other funding comes from voluntary contributions, or additional donations that can come not only from members on top of their normal dues, but also from other UN agencies, intergovernmental organizations, philanthropies, the private sector, and more. Voluntary contributions have accounted for more than three-quarters of WHO’s budget in recent years.
Why the Fundraising Shakeup?
WHO is trying out a new fundraising strategy because its previous model is falling short.
When it was first founded, almost all of WHO’s funding came from annual membership dues. But in 2022-2023, these fees only covered 13% of WHO’s budget, leaving the vast majority of its funding increasingly dependent on voluntary contributions.
The majority of these donations are short-term grants earmarked for specific projects or geographic regions, making it difficult to predict which WHO activities will receive adequate funding in a given year. It’s a little like receiving a gift card for your birthday — deeply appreciated of course, but much more limiting than if you had just gotten some cash you could freely spend anywhere.
Unpredictable budget flows have meant that WHO employs 60% of country office staff on short-term contracts, hindering its ability to make long-term, sustainable impact. And heavily earmarked donations severely limit the agency’s ability to nimbly respond to areas with the most pressing needs or emerging, unforeseen crises (such as pandemics, as happened in 2020). The status quo gives donors enormous sway over WHO’s decision-making, leaving it with less autonomy and concentrating influence in the hands of a few wealthy stakeholders.
Enter: The First-Ever Investment Round
That’s why this year, WHO is doing something radically different. For its next budget, WHO requires $11.1 billion in total funding. It’s already accounting for $4 billion in membership dues — leaving a $7.1 billion shortfall.
To raise this money, WHO can do one (or both!) of the following:
- Increase membership dues from contributing countries
- Encourage longer, more flexible voluntary contributions
On Point A, world governments agreed last year to increase their yearly dues by 20% to improve the amount of funds readily available to WHO. The idea is to increase this incrementally so that by 2030, these contributions eventually cover 50% of WHO’s overall budget.
Point B is where the Investment Round comes in. It will include a series of engagements and opportunities for donors to make funding pledges, culminating at the G20 leaders' summit chaired by Brazilian President Lula da Silva in November.
WHO has never sought to bundle its fundraising like this before. Rather than relying on the traditional mix of flat annual pledges and ad-hoc donations, this new strategy aims to secure resources in advance so that WHO can make more long-term plans, maintain a stable staff, and allocate funds where they’re needed most.
What Will WHO Do With $11.1 Billion?
Hitting WHO’s funding targets is more urgent than ever. As WHO Director-General Dr. Tedros Adhanom Ghebreyesus stated, “Health is arguably under more threat now than at any time since WHO’s founding.” The world faces severe health inequities that compounded during COVID-19. Over half of the world lacks access to essential health services, and 2 billion people face financial hardship due to out-of-pocket health costs.
In its investment pitch, WHO argued that $11.1 billion is actually modest considering the amount of value it could deliver. It’s only a fraction of the almost $10 trillion the world spends annually on healthcare costs (Dr. Tedros even recently noted that the world spent $717 billion last year on cigarettes alone). Investments in WHO, on the other hand, offer an incredible return-on-investment, generating $35 worth of health gains for every $1 invested.
If it hits its investment target, WHO believes it could save at least 40 million lives by the end of 2028. Among other actions, it aims to do this by:
- Providing healthcare to more than 150 million people across 30 countries;
- Bringing solar power to 10,000 health facilities to help countries adapt to climate change;
- Training 3.2 million health workers in 55 countries.
Africa Steps Up
To kick off its Investment Round, WHO convened 14 African countries — Botswana, Cabo Verde, Chad, Congo, Ethiopia, Gambia, Mauritius, Namibia, Niger, Rwanda, Senegal, Seychelles, South Africa, and Tanzania — that collectively pledged over $45 million to support WHO over the next few years. Other key organizations pitched in as well, including the Gates Foundation and the African Development Bank, underscoring the importance of public-private partnerships in tackling this fundraising goal.
These contributions are especially noteworthy because they come at a time when wealthier nations are scaling back their international aid. In contrast, African nations are stepping up and demonstrating their commitment to take ownership of regional and global health futures.
WHO is now calling on all nations to follow their lead so that every country, regardless of their wealth, remembers that investing in global health is a shared responsibility.
What’s Next
WHO’s funding appeal is not just about addressing its immediate needs; it's about creating a world where the globe’s leading public health agency can withstand shocks and help create a resilient, healthy future for all.
The first round of pledges from African nations marks just the beginning of this goal. WHO will leverage this momentum and aim to secure further financial commitments with an eye towards the upcoming G20 leaders’ summit in November. This event will be a critical moment to finalize this push, galvanizing global support to secure the enormous amount of funding needed.
In a world facing interconnected health threats, WHO’s Investment Round represents a rare opportunity for all countries to take action to protect and improve the lives of millions. Let’s hope they seize it.