Manufacturing and Energy

Nigeria to become manufacturing hub for insecticide-treated malaria nets

Vestergaard Sàrl (https://Vestergaard.com/) has today declared that the Government of the Federal Republic of Nigeria, through the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), has entered into a Memorandum of Understanding (MoU) with the company. This agreement marks the initial step towards establishing Nigeria as the premier manufacturing hub for insecticide-treated malaria nets (ITNs) in West Africa, and the first in the continent to produce dual active-ingredient nets aimed at addressing insecticide resistance.

Every minute, a child under the age of five succumbs to malaria (https://apo-opa.co/4eqUoIY). The African continent is responsible for nearly 95% of global malaria cases, with Nigeria accounting for a quarter of these instances (https://apo-opa.co/4ecJ8jD). There is an urgent need for innovative strategies to enhance access to proven, cost-effective tools for combating this disease, and prioritizing local production of nets, medicines, and vaccines is essential for the continent (https://apo-opa.co/47HfNLM).

The MoU announced today sets the groundwork for Vestergaard to form a joint venture with a local manufacturing partner in Nigeria, potentially with the support of MedAccess, a social investor established by British International Investment, the UK’s development finance institution and impact investor. The process of selecting a suitable partner is currently in progress and will depend on the successful completion of a due diligence review. Additionally, Vestergaard is exploring financing opportunities with the U.S. International Development Finance Corporation (DFC).

The successful establishment of the joint venture is anticipated to yield a cutting-edge manufacturing facility that will serve as a benchmark for ITN quality and bioefficacy, alongside exemplary industrial health, safety, and sustainability practices. Once fully operational, the facility is projected to produce 10 million PermaNet® Dual long-lasting insecticidal nets annually, catering to both domestic needs in Nigeria and international markets. This initiative is expected to generate approximately 600 job opportunities within Nigeria.

Dr. Muhammad Ali Pate, the Honorable Minister of Health for Nigeria, emphasized the importance of enhancing access to long-lasting insecticide-treated nets, stating, “We cannot afford to underestimate the power of prevention in our fight against malaria. Collaborative efforts, such as this, are essential to mobilizing the resources and expertise needed to combat malaria effectively.”

Dr. Abdu Mukhtar, National Coordinator of PVAC, remarked, “Maintaining high standards in local production is imperative. By investing in the local production of bed nets, we are not only enhancing health outcomes but also laying the groundwork for a self-sufficient healthcare system capable of withstanding global challenges. This partnership with Vestergaard represents a significant advancement towards achieving this goal for Nigerians and the wider West African community.”

Michael Anderson, CEO of MedAccess, stated, “Next-generation mosquito nets are vital instruments for saving lives and preventing serious diseases. Regional manufacturing is crucial to ensure that these nets are available swiftly, reliably, and sustainably. This agreement between the Government of Nigeria and Vestergaard highlights a significant commitment to safeguarding individuals from malaria while bolstering supply chain resilience in the region. MedAccess is eager to collaborate in exploring how innovative financing can support this initiative.”

Jim Polan, Vice President of the Office of Health & Agribusiness at the U.S. International Development Finance Corporation (DFC), stated that the organization’s investments in regional manufacturing, especially in Africa, are designed to enhance the resilience of health systems and diversify supply chains. He emphasized that DFC is actively seeking various opportunities to improve access to essential health products, such as bed nets, to better equip the region in addressing malaria and other diseases transmitted by vectors, particularly in light of shifting climate conditions.

Amar Ali, CEO of Vestergaard, remarked that this collaboration highlights the proactive leadership and dedication of the Nigerian government in combating malaria. He expressed gratitude for their involvement and support as they join forces with partners to establish a state-of-the-art facility that will serve as a global standard in the production of dual-insecticide nets.

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