African Export-Import Bank (Afreximbank) and the Africa Centers for Diseases Control and Prevention (Africa CDC) have announced a plan to collaborate on a $2 billion health security investment plan.
This announcement was made at the Global Forum for Vaccine Sovereignty and Innovation in Paris, France.
According to the parties, the partnership is expected to bolster health security and economic development across the African continent
The $2 billion fund
Afreximbank has pledged a $ 2 billion facility to the “Africa Health Security Investment Plan,” aimed at supporting the continent’s ambition to enhance health product manufacturing.
This initiative will focus on two critical mechanisms: 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.
- It also aims to complement GAVI’s innovative financing mechanism, the African Vaccine Manufacturing Accelerator (AVMA), which is set to provide up to $2 billion in financing to African manufacturers of health and pharmaceutical products over the next decade.
- African pharmaceutical companies face significant challenges, including global health, security, and economic issues.
- These companies are crucial for investment and technological advancements in the health sector, yet they struggle with low investor confidence, inadequate infrastructure, trade-related barriers, and regulatory challenges.
- Although 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 2040. This goal is part of a broader strategy to ensure self-reliance during crises such as pandemics and outbreaks.
Commenting on the signing, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, 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.”
H.E. Dr. Jean Kaseya, Director General of Africa CDC, added, “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
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: A single-entry point for health project preparation and implementation, with capacity-building support from Africa CDC.
- Investment project pipeline: A clear, forward-looking list of health investment projects in Africa, accessible through Afreximbank 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.