Balancing Equity and Sustainabiltiy

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(No Transcript)
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The Role of NetMark the Commercial Sector in
Achieving the Goals of Abuja

• Balancing Equity and Sustainabiltiy
• in the Delivery of ITMs

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Objectives

• Review goals of Abuja
• Propose a model that balances equity and
  sustainability
• Discuss how public and commercial sectors must
  work together to achieve the goals of Abuja
• Present NetMarks contribution towards the goals
  of Abuja

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Effective ITN use can reduce

• Rates of severe malaria by an average of 45
• All-cause child mortality by 19 - 42
• Child mortality in Africa 21 - 72 (up to
  600,000 children annually
• Low birthweight births by 40

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Some Key Commitments From Abuja

• Halving malaria deaths by 2010
• Making ITNs available and affordable to 60 of
  those at risk
• Reducing or waiving taxes and tariffs for
  mosquito nets, materials and insecticides

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Implications Of Abuja Commitments For ITNs

• Estimated annual need 32 million nets and 300
  million single treatments
• Estimated total cost per delivered net via NGOs
  15 - 20
• Total cost per annum for nets alone 450,000,000
  - 600,000,000!!
• Even with adequate funds the logistical capacity
  is not in place

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Current Situation Insufficient Coverage
Rich A B C D E Poor F

• Public Sector

• Commercial Sector

• NGOs

Population
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Expanding Coverage Through Market Segmentation
A
Rich
Commercial Sector
B
C
D
E
Poor
Population
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Balancing Equity and Sustainability
Targeted Subsidies
Commercial Viability

• Creation of favorable market environment
• Netmark attracts commercial partners
• Integrated marketing build sustainable demand

• Focus on high risk, low income groups via
  ante-natal clinics (Senegal)
• Equity fund for subsidized nets (Senegal)
• Subsidized social marketing (Zambia)

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Why Is The Commercial Sector Reluctant To Enter
The ITN Market?

• Perception of limited market potential (high
  price/low demand)
• Uncertainty about influx of subsidized products
• High taxes and tariffs (e.g., Senegal, Ghana)
• Manufacturers not traditionally in the consumer
  products business
• Cost/risk of putting large quantities on the
  market
• High cost/risk for retailers to stock

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NetMark Approach

• Create a sustainable commercial market for ITNs
  through shared risk
• Segment market to use public-private resources
  rationally for mutual benefit
• Full involvement of private sector in
  consumer-oriented approach
• Coordinate with NMCPs RBM partners - balancing
  sustainability and equity, creating favorable
  environment

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Netmark Target Countries
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NetMarks Four Key Issues

• Demand
• Affordability
• Appropriate Use
• Access

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Demand 12 - 34 Net Ownership 0 - 11 ITN
Ownership
UA Q701 Base all households
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Affordability 79 - 86 Post-trial Probability
Of Purchase gt 7 for ITN Kit
MicroTest Q26a and Q61a Base Non net owners
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Affordability 69 - 97 Post -Trial Probability
of Purchase For Commercially Priced Retreatment
MicroTest Q28 and Q61a Base Net owners
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Appropriate Use Low Use Among High Risk Groups
UA Section 7 Base Net owning households
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Access Insufficient Availability of Nets
UA Q505 Base Total Respondents
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The NetMark Team

• Academy for Educational Development (AED)
• The Malaria Consortium/UK
• Group Africa
• Johns Hopkins University, Dept of Intl Health
• Commercial Partners to be selected by May

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NetMark Status

• Conducted comprehensive market research with SCJ
  and Research international to explore regional
  commercial viability of ITNs (6/00 - 2/01)
• SCJ determined that risk is too high for them to
  launch a branded line of ITNs (2/01)
• Negotiating with ALL major net and insecticide
  manufacturers to launch ITN marketing campaigns
  in Nigeria, Senegal, Ghana and Zambia in 2001 -
  2004

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Contact NetMark

• Website www.netmarkafrica.org
• David McGuire, Program Director
  dmcguire_at_aed.org tel [phone]
• Will Shaw, Regional Director (Johannesburg, SA)
  wshaw_at_aed.org.za tel [phone]
• Carol Baume, Research Director cbaume_at_aed.org
  tel [phone]