African Pharmaceutical Manufacturing now to get $2b facility
African Pharmaceutical Manufacturing sector is set to get $2b facility to support the health product manufacturing ambition of the continent. Afreximbank and Africa CDC have extended their partnership through a new cooperation agreement announced today during the Global Forum for Vaccine Sovereignty and Innovation in Paris, France. Afreximbank has pledged a US$ 2 billion facility to the “Africa Health Security Investment Plan” to support the continent’s health product manufacturing goals. This collaboration will specifically target the African Pooled Procurement Mechanism (APPM) and the Platform for Harmonized African Health Products Manufacturing (PHAHM).
The initiative plays a crucial role in tackling Africa’s health investment obstacles, fostering economic growth, and enhancing health security throughout the region. It aims to complement GAVI’s African Vaccine Manufacturing Accelerator (AVMA), which is expected to offer up to USD 2 billion in financing to African health and pharmaceutical product manufacturers over the next decade.
African pharmaceutical manufacturing companies are significantly impacted by global health, security, and economic challenges, despite being key players in driving investments and technological advancements in the health sector. Challenges such as low investor confidence, inadequate infrastructure, trade barriers, and regulatory issues hinder investments in Africa’s health sector. Although funds are available, many potential investments fail to materialize due to financial and non-financial barriers. Coordinated efforts at the continental level are crucial to overcoming these challenges and aligning with the New Public Health Order.
Closing the investment gap is of utmost importance in order to fulfill the African Union’s goal of manufacturing 60% of vaccines locally by 2040 and implementing necessary measures to ensure self-reliance, particularly during times of crises like pandemics and outbreaks.
Comments on the African Pharmaceutical Manufacturing
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, expressed his satisfaction with the signing, stating that it is a significant event that will have a profound impact on health security in Africa. Through various interventions such as Project Preparation funding, Project and Trade Finance, as well as Guarantees, this facility will contribute to strengthening the manufacturing of health and pharmaceutical products in Africa. Additionally, Afreximbank plans to support this facility through equity investments via their subsidiary FEDA – the Fund for Export Development into Africa.
H.E. Dr. Jean Kaseya, Director General of Africa CDC, emphasized the importance of today’s announcements in transforming the landscape of health product manufacturing in Africa. By investing in our ability to achieve self-reliance in health countermeasures, we are safeguarding Africa’s health and securing our future.
The “Africa Health Security Investment Plan” will enable Afreximbank to provide support and financing for key health projects identified by Africa CDC. This collaborative effort combines institutional and financial resources, utilizing tools such as equity and debt financing, guarantees, venture capital, capacity building, and risk-sharing to attract more health investments in Africa.
The Africa Health Security Investment Plan -African Pharmaceutical Manufacturing Facility – is structured around three main pillars:
- Provision of Technical Assistance and Advisory Services: A centralized hub for health project planning and execution, with capacity-building assistance from the Africa CDC.
- Development of an Investment Project Pipeline: A transparent, future-oriented compilation of health investment initiatives in Africa, accessible via the Afreximbank Project Portal.
- Implementation of Regulatory and Normative Support: Initiating initiatives to eliminate obstacles and establish a favorable environment for trade and investment, under the guidance of the Technical Steering Committee of Africa CDC- AfCFTA.
The primary goal of the Africa Health Security Investment Plan is to address health investment obstacles in Africa, foster economic development, and bolster health security throughout the continent.
