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Vaccine ImpactMarch 30, 2019

Explaining Gavi, Part 3: How Gavi Works

So, what exactly does Gavi do? Well, it…

  • Leverages economies of scale
    • Gavi aggregates demand from the world’s poorest countries, sending a clear signal to manufacturers of a large and viable market for vaccines. Gavi-supported countries represent more than half of the world’s birth cohort.
  • Provides long-term funding
    • All countries pay a share of the cost of their Gavi-supported vaccines. As a country’s income grows, its co-financing payments gradually increase to cover the full cost of vaccines.
    • Predictable, long-term donor support is another cornerstone of the Gavi model. It provides the security for countries to adopt vaccine programs. It also makes it possible for manufacturers to make new investments in production capacity.
  • Shapes markets
    • Through their market shaping efforts, they influence the markets for vaccines and other products. Manufacturers are better able to plan their production and supply the right vaccines at more affordable prices.
  • Accelerates access and improves systems
    • Their strong business model allows them to help countries introduce new vaccines. They support countries in improving their health and immunization systems to increase coverage and reach every child.
  • Creates a virtuous cycle
    • Greater immunization coverage leads to healthier, more productive populations and greater prosperity. This, in turn, means countries are better able to pay for their vaccine programs and eventually transition out of Gavi’s support.

Naomi Naik