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Home » Financing Options Table for African Health Product Manufacturing – Africa CDC
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Financing Options Table for African Health Product Manufacturing – Africa CDC

activepulsnewsBy activepulsnews9 March 2025No Comments4 Mins Read1 Views
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The Development Financial Institution (DFI) is stepping up to accelerate Africa's drug and vaccine manufacturing ambitions, marking a new stage in promoting self-sufficiency in continental health products.

The funding proposal was presented at the Second Vaccine and Health Products Manufacturing Forum held in Cairo from February 4-6, 2025.

The leading DFIs, including the African Export Bank (rear bank), have investigated investment strategies that accelerate local drug production and expand Africa's role in global medical security, including the African Development Bank, the European Investment Bank (EIB), the World Bank, International Finance Corporation (IFC), and the French Development Agency. They also highlighted the institution's current and future investments to support these efforts.

Afreximbank outlined the progress of its implementation, pledged to a US$2 billion facility to support the manufacture of medical and health products. Meanwhile, institutions such as IFC and EIB have introduced new funding initiatives they are developing with their partners.

This momentum marks a major shift in Africa's journey to independence, ensuring sustainable manufacturing ecosystems, reducing dependence on external supply chains, and improving pandemic preparation. Building on the momentum of the 2023 gathering in Marrakech, Morocco, the forum has identified 25 vaccine production initiatives across the continent, with 10 already in place.

Cairo representatives also learned how Egypt positions itself as one of Africa's most advanced producers of health products, and provided a model to bridge the continent's manufacturing gap. The country shows what is possible when strong political will, strategic investment and regulatory excellence converges.

Egypt's advances are in line with the African Union's goal of producing 60% of the vaccine locally by 2040. However, procurement remains an important issue. Dr. Aly Al-Ghamrawy, chairman of the Egyptian Drug Dispatch, highlighted the risk of external trust. Reliance on external suppliers makes us vulnerable in times of crisis. ”

Egypt's regulatory advances are also setting new benchmarks. In December 2024, the World Health Organization recognized it as the first African country to achieve level 3 of its drug and vaccine maturity. This achievement coincided with the production of Egypt's first locally manufactured insulin.

Egypt's progress is admirable, but there are wide challenges throughout the continent. Fragmented regulatory systems, limited technology, labor shortages, lack of off-take guarantees and financing gaps have hindered manufacturing growth in the region.

Dr. Cilba Mwila, talent development lead for the Africa CDC platform for harmonious African health manufacturing (PHAHM) in Africa, emphasized the need for collaboration between the Industrial Association to develop STEM curriculum, internships and on-site training.

Despite these challenges, progress continues. New funding mechanisms and policy changes lie behind the increasing momentum. In June 2024, Gavi launched the African Vaccine Manufacturing Accelerator (AVMA) and secured a US$1.2 billion pledge to expand African vaccine production. At the same time, Afreximbank has pledged a US$2 billion facility under the African Health Security Investment Plan. The newly established African pooled procurement mechanism is set up to increase demand certainty and market sustainability.

Meanwhile, African drug institutions were highlighted as important enablers in the forum, urging participants to accelerate approval and stronger regulatory adjustments to ensure safety. The African Continental Free Trade Area was also recognized as key to expanding regional trade and enhancing access to markets.

Dr. Jean Kaseya, Director of CDC in Africa, reaffirmed his vision for the continent. “The local manufacturing agenda is not an option. It's a vision we're making.”

The new partnership announced at the forum highlighted Africa's expanding ability to manufacture vaccines, diagnostics and therapeutics. While Afrigen and Biogenic Pharmacma will move forward with mRNA technology movement, Evapharma, Quantoom and Unizima have set key steps to strengthen collaboration in the development and production mark of mRNA vaccines, boost local manufacturing and reduce reliance on imports.

Attended the forum were representatives of 12 member states (Algeria, Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria, Rwanda, Senegal, South Africa, Uganda and Zambia), national regulators, local economic communities, manufacturers in Africa, global partners, global partners, charities and civil society organizations. As Africa moves towards its goal of producing 60% of its vaccines by 2040, sustained investment, harmonious regulations and sector collaboration will be key to achieving this vision.



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