COMMENT: Is life in the blood or in the foreign currency?

They say water is life. To some extent, they are correct in saying so.

However, what is life in our view is actually blood. The National Blood Service Zimbabwe (NBSZ) asserts that position in their motto, “Life is in the blood.” The NBSZ provides an essential service for all of us, collecting blood, storing it safely and selling it and its various products to hospitals and medical aid organisations for patients to access. It is the only blood bank we have in the country.

We were, however, taken aback on Monday when the NBSZ released an internal memo that not only suspends a credit facility for public health institutions but also demands cash payments in foreign currency.

“This memo serves to advise you that NBSZ has taken a position to stop accepting blood coupons from Government health institutions with effect from July 7, 2020. All hospitals are now required to pay for products and services in advance until further notice. Credit facility can only be extended to a hospital after completion and approval of the credit application form,” reads the memo.

“Blood user fees for public institutions, medical aid organisations and other health funders shall be paid strictly in United States dollars or at an exchange rate equivalent to the Old Mutual Implied rate.”

The NBSZ justifies the decision by saying the cost of critical raw materials and consumables required for collection and processing of blood components has “continued to escalate as a result of the current inflationary environment.”

Everyone will agree with the organisation that prices for raw materials and consumables for blood collection, processing and handling are rising in tune with increasing inflation. Because blood is so precious and sensitive, it must be kept in the best environment. This needs much money and many of the raw materials and consumables are imported, so are paid for in foreign currency.

But with the new decision, we foresee health institutions and medical aid organisations passing the cost to patients and members respectively. Hospitals will demand patients to buy blood in foreign currency; medical aid organisations demanding their members to do the same if they happen to need blood or any blood products. Regrettably not many of us have foreign currency to be able to buy anything, even something as essential as blood. More and more people will fail to access blood. They will suffer and the risk of death due to lack of blood will be high. We don’t want lives to be lost just because people don’t have foreign currency.

We thus call on the NBSZ to rethink their pricing model which, in its present form, negates the organisation’s slogan. If the pricing regime goes on like that, the NBSZ might have to change their motto to something like “Life is in the foreign currency!”

Acting Permanent Secretary in the Ministry of Health and Child Care, Dr Gibson Mhlanga told us on Tuesday that the NBSZ had not officially communicated the new prices to his office. That means that the organisation issued the memo without Government input. We are unhappy about that; the people must be unhappy about that too. The NBSZ should have consulted widely before drafting that memo and there can be no meaningful consultations that exclude Dr Mhlanga’s office. We are hopeful that the NBSZ will do the needful. If that happens, we are confident that the Government will assist the NBSZ with a package that will keep the cost of blood and blood products affordable for the majority.

We have expressed our unhappiness at the fact that the NBSZ proceeded to demand foreign currency for blood without consulting the Government. In addition to that, we are unhappy that the organisation says alternative payment for blood would be at an exchange rate equivalent to the Old Mutual Implied Rate (OMIR). This rate has been much-derided not only by the Government, but also by various economic analysts on the grounds that it influences the black market for foreign currency.

In May, former Presidential Advisor Ambassador Chris Mutsvangwa criticised the OMIR for bleeding the capital stock of Zimbabwe. Yesterday, the OMIR was at US$1 to Z$122, 22 yet at the foreign exchange auction on Tuesday the rate was US$1 to Z$65, 87. We wonder why the NBSZ thought it made sense to use the OMIR as the rate to be used for those buying blood and blood products in local currency ignoring the more transparent auction rate.

Is life in the blood or in the foreign currency? This is the question for the NBSZ to answer.

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