Bulletin of the World Health Organization

How to establish a successful revolving drug fund: the experience of Khartoum state in the Sudan

Gamal Khalafalla Mohamed Ali

Volume 87, Number 2, February 2009, 139-142

Table 1. Summary of 10 lessons learned from the RDF experience in Khartoum state, the Sudan

Elements Outcomes
1 Substantial investments • helped the RDF to absorb devaluation loss
• RDF maturing to be smoothly handed over
2 Gradual implementatio • allowed time for necessary preparation
• testing of drug supply and cash collection systems
• proper training of staff
3 Management style • adopting transparency
• flexible organization structure
• business-oriented management
• joint style between national Ministry of Health and expatriate Save the Children (United Kingdom) staff
4 Political commitment • tax and import duty exemption
• independent account
• import licence exemption
• monopoly
5 Currency swap agreement • safeguards against devaluation
• permits importation of low cost and quality medicines
• high mark-up on cost covers the RDF operating expenses while keeping retail price lower
6 Price revision • protecting the RDF against devaluation
• keep pace with market price
• maintain users ability to pay
7 Community acceptance • increases RDF turnover
• permits replenishment of exhausted stocks
• avoids funds being tied-up
• revenue available to cover RDF operating expenses
8 Focus on common diseases • shortlist for treatment of common diseases
• avoid the wastage of limited resources
• increases coverage by purchasing big quantities
9 Reliable supply system • regular availability of medicines
• low cost medicines
• maximizing of RDF sales
• allows the RDF to make medicines regularly available
10 Supervision • prohibiting medicine leakage
• 100% cash collection rates
• reduces losses due to expiration and deterioration of medicines

RDF, revolving drug fund.