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Home COVID 19 Health

WHO Director-General Advocates Health Tax Reform to Address Global Financing Gaps

by SAT Reporter
August 6, 2025
in Health
0
WHO Director-General Advocates Health Tax Reform to Address Global Financing Gaps

World Health Organization (WHO) Director-General Dr Tedros Adhanom Ghebreyesus has proposed a significant expansion in the use of health taxes as a viable mechanism to close the persistent global health financing gap, particularly affecting low- and middle-income countries.

Delivering his address at the Africa Health Sovereignty Summit in Accra, Ghana, Dr Ghebreyesus underscored the urgency of rethinking how health systems are financed across the continent. He urged African leaders to embrace domestic reforms while advocating for broader changes to the global economic structure. According to the WHO chief, systemic imbalances within global financial flows continue to undermine Africa’s ability to invest sustainably in healthcare infrastructure.

In his remarks, Dr Ghebreyesus noted the continent’s constrained fiscal space, highlighting that in 2023 Africa received approximately USD 74 billion in aid but lost a substantially higher amount—USD 90 billion to illicit financial flows and an additional USD 55 billion through corporate tax exemptions. These disparities, he said, illustrate why current models of foreign aid and investment are insufficient and unsustainable in addressing Africa’s health needs.

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As a potential solution, the WHO recommends the implementation of increased health taxes on consumer goods such as tobacco, alcohol, and sugar-sweetened beverages. Dr Ghebreyesus stated that a 50 percent price increase on these products could generate up to USD 3.7 trillion globally over five years, while simultaneously improving public health outcomes by reducing consumption of harmful substances. These estimates are grounded in WHO modelling studies and are reflective of similar fiscal health interventions adopted in various countries, including the Philippines, South Africa, and Mexico.

“One practical solution is health taxes,” Dr Ghebreyesus said. “A 50 percent price increase on harmful products like tobacco, alcohol, and sugary drinks could generate an additional 3.7 trillion dollars globally within five years and save millions of lives.”

The Director-General stressed that discussions around health financing should not occur in isolation from the global economic order. He highlighted how asymmetries in financial governance disadvantage Africa, reinforcing the need for multilateral reform. These sentiments align with growing international discourse on health sovereignty and the call for a more equitable health financing architecture.

While acknowledging the role of foreign assistance, Dr Ghebreyesus encouraged greater domestic investment and governance reform across African health sectors. He lauded Ghanaian President John Dramani Mahama for championing global health governance reform and for fostering political commitment to African-led solutions.

The Accra summit, convening leaders and experts from across the continent, is expected to conclude with the adoption of the Accra Initiative—a comprehensive roadmap aiming to realign global health governance priorities. The Initiative outlines new benchmarks, guiding principles, and actionable targets to reinforce health system resilience across Africa, with a focus on sovereignty, sustainability, and local ownership.

The WHO’s advocacy for health taxes is part of a broader global push to link fiscal policy with public health objectives, a strategy already recommended in multiple WHO position papers and supported by evidence from the Lancet Commission. The health body maintains that health taxes, when properly implemented, represent a dual opportunity: generating substantial public revenue while contributing directly to reductions in non-communicable diseases.

As Africa contends with overlapping challenges—including climate vulnerability, infectious disease threats, and economic volatility—international attention is increasingly turning to holistic, sovereign-led health system reforms. The Accra summit serves as a timely platform to amplify these issues and foster multilateral support for sustainable solutions.

Tags: Accra InitiativeAfrica Health Sovereignty SummitAfrican health systemsfiscal policy in healthcareglobal economic reformglobal health financinghealth governance reformhealth taxesillicit financial flowspublic health policyTedros Adhanom Ghebreyesustobacco and alcohol taxesWHO
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