Afrexim Bank Commits $2B to Africa CDC to Enhance African Pharma Capacity
On 20 June 2024 in the margins of the Global Forum for Vaccine Sovereignty and Innovation in Paris, France, the Africa Center for Disease Control (CDC) and Afrexim Bank announced a partnership to build a USD 2 billion pharmaceutical production facility.
Based on the accord, Afrexim Bank has committed to provide financing to the tune of USD 2 billion for the implementation of the project. The project is in line with the Africa Health Security Investment Plan (AHSIP) to contribute to the #HealthSovereignty of Africa. This project is also tied to the African Pooled Procurement Mechanism (APPM) and the Platform for Harmonized African Health Products Manufacturing (PHAHM).
“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.”
Afrexim Bank Chair Benedict Oramah
This financing from Afrexim Bank will complement GAVI’s financing mechanism. It will also follow the African Vaccine Manufacturing Accelerator (AVMA) program which also supports African manufacturers of health and pharmaceutical products.
The Africa Health Security Investment Plan rests on three pillars:
- Technical Assistance and Advisory Services: A single-entry point for health project preparation and implementation, with capacity-building support from the Africa CDC.
- Investment Project Pipeline: A clear, forward-looking list of health investment projects in Africa, accessible through Afrexim Bank Project Portal.
- Regulatory and Normative Support: implementing programs to remove bottlenecks and create a conducive environment for trade and investment, guided by the Technical Steering Committee of Africa CDC- #AfCFTA.
“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.”
Africa CDC DG Jean Kaseya
The African Union (AU) declared goal is to meet at least 60% Africa’s vaccine needs via local production through the Africa Health Security Investment Plan. Afrexim Bank is ready to support and finance key health projects identified and proposed by the Africa CDC. The joint efforts aim to attract both public and private investment, and venture capital for equity and debt financing and provide de-risking or risk-sharing mechanism to boost #FDI into the health sector in Africa.