Afreximbank, Africa CDC Earmark $2Bn To Support Pharmaceutical Products Manufacturing In Africa
By Sunday Etuka, Abuja
H.E. Dr. Jean Kaseya, Director General, Africa CDC (left) shakes hands with Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank
African Export-Import Bank (Afreximbank) and the Africa Centers for Diseases Control and Prevention (Africa CDC) have pledged the sum of $2 billion to support pharmaceutical products manufacturing in Africa.
Afreximbank in a statement on Thursday said, the facility was announced on the sidelines of the Global Forum for Vaccine Sovereignty and Innovation in Paris, France.
According to the statement, the initiative would focus on the African Pooled Procurement Mechanism (APPM) and the Platform for Harmonized African Health Products Manufacturing (PHAHM).
The Bank said, the initiative is pivotal in addressing Africa’s health investment challenges, promoting economic development, and strengthening health security across the continent.
It also intends to complement GAVI’s innovative financing mechanism, the African Vaccine Manufacturing Accelerator (AVMA) which is set to provide up to USD 2 billion financing to African manufacturers of health and pharmaceutical products over the next ten years.
African pharmaceutical companies face severe impacts of the global health, security and economic challenges, yet they are the drivers of investments and technology advancements that the health sector needs. Low investor confidence, lack of appropriate infrastructure, trade related barriers, and regulatory challenges are some of the constraints to investment in Africa’s health sector.
While funds might be available, many potential investments do not materialize due to financial and non-financial obstacles. Coordinated efforts at the continental level are essential to reverse this trend and align with the New Public Health Order.
Closing the investment gap will be crucial to achieving the African Union’s ambition of manufacturing 60% of vaccines needed locally by the year 2040 as well as implementing all other countermeasures necessary to ensure self-reliance especially during crises such as pandemics and outbreaks.
While commenting on the signing, the President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, said: “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.”
Also speaking, Director General, Africa CDC, Dr. Jean Kaseya said, “Today is a big day for African vaccine manufacturing as well as health products manufacturing in general, as we welcome these major investment announcements that will change the face of health products manufacturing in Africa for years to come. 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, financial tools such as equity and debt financing, guarantees, venture capital, capacity building, and risk-sharing to boost and attract more health investments in Africa.
The ‘Africa Health Security Investment Plan’ is built on three key pillars: Technical Assistance and Advisory Services, Investment Project Pipeline, and Regulatory and Normative Support.
The Africa Health Security Investment aims to tackle Africa’s health investment challenges, promote economic growth, and enhance health security across the continent.
