Results Based Financing USD Component Returns Under Health Resilience Fund

By Kuda Pembere

The Health Resilience Fund (HRF) is working on reviving the the United States Dollar (USD) component for the Results Based Financing (RBF) which had been halted in 2022 with US$5million already earmarked for disbursement across health facilities in Zimbabwe.

This was said by UNICEF Health Systems Strengthening Health Manager, Mr Norest Hama recently at an HRF media briefing recently.

The RBF is a financial facility allocated for covering other operational expenses. In the first quarter of 2022, there was an arrangement that saw government take up the RBF and institutionalizing it while disbursing in the local currency.

So the HRF allocated US$5 million that will be disbursed to at 1473 rural facilities and 118 secondary facilities and these include also the clinics in Harare and Bulawayo.

“I think this was included after the increased urban vulnerability. It continues to come up in several surveys. It is also coming into the urban areas,” he said.

He added, “And note that initially when the RBF started, it was mainly partner funded. But the government has adopted this model and it has been institutionalized. The government is now taking the lead.

“It has contracted all the districts in the country and they are disbursing RBF subsidies but there is a backlog. We know there is a backlog but at least government is showing commitment that this line item gets a ring-fenced amount from the Ministry of Finance budget.”

*He explained that the RBF started in 2012 funded by World Bank. It was taken up by a Pooled Fund running in 2014 to cover 60 districts. Mr Hama said Government then institutionalized the RBF in 2022 resulting in the USD component being phased out.

“Government fully institutionalized the RBF contracting the 60 rural districts. All the 60 rural districts are under RBF with support from government.

“But now the HDF support, the USD component ended in Q1 2022 because this was the agreement that government is taking over everything.

“But now looking at the obtaining challenges that we are having in facilities, the HRF saw that it could also maybe be prudent to bring in a complementary fund to what the government is doing to ensure the facilities have a better subsidies they are receiving and then they can be doing meaningful things,” Hama said.

The HRF is funded by the European Union, UK’s Foreign, Commonwealth & Development Office ( FCDO ), the Vaccine Alliance (GAVI), and the Embassy of Ireland. It is implemented by UNICEF, UNFPA, and the WHO.
Mr Hama said the HRF will disburse the US$5million soon.

“I think the first disbursement should be happening in not more than a month from now. We are now just doing the processes with regards to the funding disbursements from our funding partners that is our EU, FCDO and others but otherwise, in terms of the principle, it has been agreed to.

“Even the disbursement modalities for the first tranche has been agreed to. So as soon as those funds are in our UN implementing tier accounts, the disbursements will be happening.

“So we can say it has resumed and we are in the process of finalizing the nuts and bolts of the disbursement,” he said.
He explained that they submit workplans which are to be approved resulting in the funds release.

“So what stopped was support from the Pooled Fund. That is what is resuming. RBF didn’t stop. The allocation of US$5million is for 2024. So with HRF, we have our workplans approved per year. The funds that we have approved for now are for 2024.

“Then as we start 2025, there will also be a steering committee meeting which will allocate resources to several intervention areas including RBF. We have the rural RBF that is the one that was being supported through the pooled fund and that is the one we are making reference to. But then we have that component of the voucher system which was being implemented in urban areas mainly Harare and Bulawayo,” Mr Hama said.

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