DFC Announces Surge Financing Initiative and Strategic Investments to Bolster Global Health Security

At UNGA, DFC announces an MOU for the G7 Surge Financing Initiative, expansion of liquidity support for Gavi, and medical countermeasures manufacturing investments in Africa.

NEW YORK CITY, NY - Today, the U.S. International Development Finance Corporation Deputy Chief Executive Officer (DCEO) Nisha Biswal announced DFC, participating G7 development finance institutions (DFIs), the European Investment Bank, MedAccess Guaranty Ltd. and International Finance Corporation (IFC) are working closely with global and regional health organizations to build the collaboration frameworks and innovative financing mechanisms needed for pandemic response.

Building on lessons from the COVID-19 pandemic, these DFIs came together to sign a first-of-its-kind memorandum of understanding (MOU) for the Surge Financing Initiative for Medical Countermeasures (MCMs) to cement collaboration and co-financing for a rapid and equitable pandemic response. This G7-led initiative aims to provide surge financing for procurement, production, and distribution of vaccines, therapeutics, diagnostics, and other MCMs for low- and lower-middle-income countries during health emergencies. The ongoing Mpox public health emergency underscores the importance of this collaboration and need for surge financing.

DFC and Gavi, the Vaccine Alliance, also announced a new expansion to their donor liquidity partnership. Building on support put in place during Covid, the $1 billion Rapid Financing Facility will now allow Gavi to access funds from donors making new pledges for pandemic response or routine immunization much faster over the coming years. This addresses one of the key shortcomings of the early Covid response, when delays in accessing finance ultimately delayed access to vaccines.

"Gavi's partnership with DFC during the COVID-19 pandemic was valuable in giving Gavi access to additional financing capacity to accelerate deliveries of vaccines as needed. I am delighted today to be expanding this partnership with the inclusion of DFC in Gavi's Day Zero Financing Facility, enabling Gavi to access surge capacity backed by donor pledges for routine programs as well as emergencies. As Gavi looks to its next five-year period, protecting people, communities and indeed our world from vaccine preventable diseases will be at the beating heart of our strategy." said Dr Sania Nishtar,CEO of Gavi, the Vaccine Alliance.

"We recognize that global health security is economic and national security. DFC investments in healthcare services, supply chains, and technology strengthen pandemic preparedness and health system resilience. Over the past several years, DFC has invested over $3 billion in health-related projects, which have helped over 50 million patients access healthcare. With the new Surge Financing Initiative, the expanded Gavi liquidity facility, and investments in regional manufacturing, we will be able to do far more to expand access to life-saving healthcare products, especially during health emergencies" said Nisha Biswal, DFC Deputy CEO.

In addition to the surge financing MOU and expanding the Gavi liquidity facility, DFC announced:

• A €110 million loan to Aspen Pharmacare in South Africa to support the production and distribution of life-saving medicines and vaccines. This is part of a broader €500 million loan package with co-financing from IFC, as well as DEG and Proparco, the development finance institutions of Germany and France, respectively.
• A $10 million loan to Hewa Tele in Kenya to address supply shortages for medical oxygen, which contribute to preventable deaths from pneumonia and other respiratory illness. With ongoing public health emergencies such as Mpox, DFC remains committed to reinforcing global health security and improving health outcomes for those most in need.

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The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.  

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