Afreximbank, Africa CDC Launch $2bn Initiative to Boost African Pharmaceutical Manufacturing
Afreximbank has committed a US$ 2 billion facility to the “Africa Health Security Investment Plan” to support the continent’s health product manufacturing ambitions. This initiative will focus on the African Pooled Procurement Mechanism (APPM) and the Platform for Harmonized African Health Products Manufacturing (PHAHM).
This collaboration is pivotal in addressing Africa’s health investment challenges, promoting economic development, and strengthening health security across the continent. It also aims to complement GAVI’s innovative financing mechanism, the African Vaccine Manufacturing Accelerator (AVMA), which is set to provide up to USD 2 billion in financing to African health and pharmaceutical manufacturers over the next ten years.
African pharmaceutical companies face significant challenges, including low investor confidence, lack of appropriate infrastructure, trade barriers, and regulatory obstacles. Despite these hurdles, these companies are essential for the investments and technological advancements needed in the health sector.
Coordinated efforts at the continental level are crucial to reverse these trends and align with the New Public Health Order. Closing the investment gap is vital to achieving the African Union’s ambition of locally manufacturing 60% of vaccines needed by 2040 and ensuring self-reliance during crises such as pandemics.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented: “We are pleased to be part of yet another momentous event that will change the course of health security in Africa. This facility will help strengthen the manufacturing of health and pharmaceutical products in Africa through our comprehensive and existing interventions, such as Project Preparation funding, Project and Trade Finance, as well as Guarantees. Furthermore, we intend to put our full weight behind this facility with equity investments through our subsidiary FEDA – the Fund for Export Development into Africa.”
Dr Jean Kaseya, Director General of Africa CDC, added: “Today is a big day for African vaccine manufacturing and health products manufacturing in general. Protecting our future means investing in our ability to achieve self-reliance on all health countermeasures, vital to accomplish our mission of safeguarding Africa’s health.”
The “Africa Health Security Investment Plan” will allow Afreximbank to support and finance key health projects identified by the Africa CDC. The joint effort combines institutional and financial resources, including equity and debt financing, guarantees, venture capital, capacity building, and risk-sharing, to boost and attract more health investments in Africa.
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