South Africa’s long-anticipated vaccination rollout commenced on 17 February 2021 when frontline workers became eligible. Since then, the programme has followed a staggered approach for different age groups that would be able to receive the jab. While the rollout was not without its challenges, it was expected that successful vaccination campaigns would significantly boost the economy as it would “allow the economy to fully reopen”, according to the National Budget for February 2021/22.
To assist with a successful rollout, the Department of Health allocated R9.05 billion to fund a free mass vaccination campaign across the country. Of this R6.5 billion will be used to acquire and distribute vaccines. A further R2.4 billion was allocated to the administration of vaccines.
Since vaccination sites opened to the public, an estimated 3 000 registered sites had been set up across public and private sectors in South Africa, President Cyril Ramaphosa said during a National Assembly on 6 May 2021.
Costs involved in vaccination sites
Medical insurance providers, like Discovery Health, have set up 9 private vaccination sites since the rollout, and currently employ 1000 staff members. “We expect the cost of the vaccination programme to be approximately R200 million in 2021,” said Dr Ronald Whelan, chief commercial officer at Discovery Health, in email correspondence with MatieMedia.
The costs account for a number of factors required to build and operate a vaccination site and meet the stringent operational requirements stipulated by the National Department of Health, Whelan explained. These requirements include having access to proper storage facilities and protective uniforms for staff, cleaning equipment, and facilities on which staff can capture details of the persons being vaccinated, said Whelan.
Similarly, Mediclinic is running more than 30 vaccination sites across the country, said Dr Gerrit de Villiers, chief clinical officer of Mediclinic South Africa. “The cost of providing the vaccine is split into two components […] the actual cost of the vaccine as well as the administration that is required,” he explained.
At Mediclinic, the Johnson & Johnson vaccine costs R330 while Pfizer costs R354,75. The administration fee of R80,50 is used to cover operational costs such as staffing, pharmacy administration, and storage, De Villiers said. “To date, Mediclinic has administered over 265 000 vaccines at an average of between 2 500 – 3 000 per day,” he said.
Taking the above numbers into account, providers like Mediclinic spend an estimated R1.1 million per day on administering and maintaining its vaccination sites.
Tertiary institutions, such as Stellenbosch University (SU), have opted to open a vaccination site of their own, following the President’s announcement on 25 July 2021 that vaccination would open for individuals aged between 18 years and 35 years on 1 September. SU used this initiative as an effort to promote getting vaccinated to students and staff of the university, according to Martin Viljoen, spokesperson for the university.
To convert an SU-owned sports clubhouse into a vaccination site cost R3 328 000, according to Viljoen. “The university is providing funding for the vaccination site following the budget approval by the university rectorate,” Viljoen said.
SU used its vaccination fund to procure and administer vaccines as well as to cover costs for necessities such as proper storage facilities and personal protective equipment for staff, Viljoen explained.
Show me the money
“Funding [for vaccination sites] was received from the National Department of Health as well as Provincial Treasury,” according to Sandra Maritz, communications officer of the Western Cape Government’s Health Department.
Most of the Western Cape Government Health’s facilities that offer vaccination in the Cape Winelands, do so from their own facilities like clinics and hospitals. In instances where they use halls or ‘non-health facilities’, the department has agreements with different partners, such as Stellenbosch University and Distell Bergkelder, Maritz explained.
According to the National Budget, the funds used across South Africa to implement a successful roll-out are expected t0 direct the economy toward an annual growth of 3.3%.
“The vaccination drive creates conditions in which restrictions can be loosened in ways that will allow a normal life,” said Timothy Schultz, head of communications at Business for South Africa. When restrictions are relaxed, economic growth can be promoted and achieved, Schultz explained.
