How Afreximbank’s $2bn facility help Africa to acquire 400m vaccine doses

MOTOLANI OSENI

Cyril Ramaphosa has announced the start of monthly shipments of vaccines acquired by the African Union /African Vaccine Acquisition Trust (AVAT), through a $2 billion facility provided by African Export-Import Bank (Afreximbank) to the AU Member States.

This development was said to be achieved by the AVAT due to Afreximbank support, who is also the Financial and Transaction Advisers, Guarantors, Instalment Payment facility providers and Payment Agents.

The AVAT, on 28 March 2021, had signed the historic agreement for the purchase of 220 million doses of the Johnson & Johnson single-shot COVID-19 vaccine, with the potential to order an additional 180 million doses.

The Johnson & Johnson vaccine was selected for the first pooled procurement for three reasons: first of all, as a single-shot vaccine, it is easier and cheaper to administer; second, the vaccine has a long shelf-life and favourable storage conditions. Last but not least, the vaccine is partly manufactured on the African continent, with fill-finish activities taking place in South Africa.

President Ramaphosa said: “This is a momentous step forward in Africa’s efforts to safeguard the health and well-being of its people. By working together and by pooling resources, African countries have been able to secure millions of vaccine doses produced right here in Africa. This will provide impetus to the fight against COVID-19 across the continent and will lay the basis for Africa’s social and economic recovery.”

On 5 August, the first monthly shipments will arrive in the several Member States, and shipments will continue for a total of 6.4m doses shipped in August. Monthly shipments will continue and be continually ramped up, with a target of delivering almost 50m vaccines before the end of December. By January, the number of vaccines being released will be in excess of 25m per month. In collaboration with the Africa Medical Supplies Platform (AMSP), UNICEF is providing logistical and delivery services to the Member States.

It is significant that these vaccine doses are being produced on the African continent at the Aspen Pharmacare facility in Gqeberha in South Africa. This is part of the concerted effort by African countries to rally the world to support the TRIPS waiver for technology transfer and active pharmaceutical ingredients to develop our own manufacturing capabilities.

Director of the Africa Centres for Disease Control and Prevention (Africa CDC), Dr John Nkengasong said: “During the last months, we have seen the vaccination gap between Africa and other parts of the world widen, and a devastating third wave hit our continent. The deliveries starting now will help us get to the vaccination levels necessary to protect African lives and livelihoods.”

Commenting, President and Chairman of the Board of Afreximbank, Prof. Benedict Oramah, said: “The very low access to vaccines has exposed Africa to a devastating third and fourth wave of COVID-19. Death rates are rising and economies are becoming increasingly vulnerable. W

“We are encouraged by the successful commencement of this vaccine roll-out, which will help contain the spread of the virus and protect lives and livelihood. Afreximbank is pleased to have contributed to the historic procurement of vaccines by AVAT. We look forward to better days ahead for our people through this effort.”

“This is a proud moment for the continent; the vaccines, partly manufactured in South Africa is a true testament that local production and pooled procurement as envisioned in the African Continental Free Trade Area (AfCFTA) is key to the attainment of a more sustainable post-Covid economic recovery across the continent,” said Dr Vera Songwe, United Nations Under-Secretary-General and Executive Secretary of the United Nations Economic Commission for Africa (UNECA).”