UN Secretary-General Antonio Guterres has called for the 'ray of hope' successful vaccine trials have offered to reach everyone. Reuters
UN Secretary-General Antonio Guterres has called for the 'ray of hope' successful vaccine trials have offered to reach everyone. Reuters
UN Secretary-General Antonio Guterres has called for the 'ray of hope' successful vaccine trials have offered to reach everyone. Reuters
UN Secretary-General Antonio Guterres has called for the 'ray of hope' successful vaccine trials have offered to reach everyone. Reuters

Antonio Guterres urges G20 to fund Covid vaccine rollout in poor countries


James Reinl
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UN chief Antonio Guterres has joined leaders from Africa, Europe and beyond to urge wealthy governments to fund a rollout of Covid-19 vaccines to poor countries ahead of a global summit hosted by Saudi Arabia this weekend.

The Secretary-General said on Friday that the wealthy member nations of the Group of 20 (G20) should help to raise $28 billion towards UN anti-Covid-19 efforts, including $4.2bn by the end of the year.

Mr Guterres will tell leaders at G20 talks on Saturday that new vaccines from Pfizer and Moderna, which have shown to be upwards of 90 per cent effective in early trials, cannot only be used to save lives in rich countries.

"The recent breakthroughs on Covid-19 vaccines offer a ray of hope," the former prime minister of Portugal told reporters in New York.

“But that ray of hope needs to reach everyone. That means ensuring that vaccines are treated as a global public good — accessible and affordable to everyone, everywhere. A people’s vaccine."

G20 countries have the resources. I am urging all of them to fully support the ACT-Accelerator

His plea comes after Indian drug maker Zydus Cadila said that it could take up to four years to distribute the vaccine throughout the entire world.

About 40 million doses of the Covid-19 vaccines from Pfizer and Moderna are expected to be available in the US by the end of the year, with more than 40 million doses available each month after that. Both vaccines require two shots about four weeks apart to be effective.

In April, the UN’s World Health Organisation (WHO) and others launched the so-called ACT-Accelerator and its COVAX global vaccines facility to pool funds from wealthier countries and charities to develop and distribute anti-Covid-19 treatments and shots.

"G20 countries have the resources. I am urging all of them to fully support the ACT-Accelerator," said Mr Guterres.

"This funding is critical for mass manufacturing, procurement and delivery of new Covid-19 vaccines and tools around the world."


Meanwhile, a letter from the leaders of South Africa and Norway, as well as the heads of the WHO and the European Commission, urged G20 leaders to close a funding gap to buy vaccines, drugs and tests to combat the pandemic.

The letter, seen by Reuters, was sent ahead of this weekend's virtual G20 summit in Riyadh, Saudi Arabia, which currently holds the rotating presidency of the body made up of rich nations and the big emerging economies.

"A commitment by G20 leaders at the G20 summit in Riyadh to invest substantially in the ACT Accelerator's immediate funding gap of US $4.5bn will immediately save lives," said the letter.

A funding boost would also "lay the groundwork for mass procurement and delivery of Covid-19 tools around the world and provide an exit strategy out of this global economic and human crisis."

The signatories were South African President Cyril Ramaphosa, Norway's Prime Minister Erna Solberg, WHO director-general Tedros Adhanom Ghebreyesus and Ursula von der Leyen, president of the European Commission.

Saudi Arabia's hosting of the two-day event is a first for an Arab nation. The scaled-down, online event occurs amid a resurgent coronavirus pandemic that has claimed 1.34 million lives globally and ravaged economies.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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