Paris, France; June 20, 2024: The African Export-Import Bank (Afreximbank) and the Africa Centers for Diseases Control and Prevention (Africa CDC) have renewed their partnership with a new cooperation agreement, announced today at the Global Forum for Vaccine Sovereignty and Innovation in Paris, France.
Through this collaboration, Afreximbank has committed a USD 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 initiative aims to address Africa’s health investment challenges, promote economic development, and strengthen health security across the continent. It also seeks to complement GAVI’s African Vaccine Manufacturing Accelerator (AVMA), which is set to provide up to USD 1 billion in financing to African health and pharmaceutical product manufacturers over the next decade.
African pharmaceutical companies face significant challenges due to global health, security, and economic issues. These companies are essential for investment and technological advancements in the health sector, yet they struggle with low investor confidence, inadequate infrastructure, trade barriers, and regulatory challenges. 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 goal of manufacturing 60% of vaccines needed locally by 2040 and implementing other measures to ensure self-reliance during crises such as pandemics and outbreaks.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented on the signing: “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, stated: “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 accomplishing 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 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 the Africa CDC.
Investment Project Pipeline: A clear, forward-looking list of health investment projects in Africa, accessible through the Afreximbank Project Portal.
Regulatory and Normative Support: Programs to remove bottlenecks and create a conducive environment for trade and investment, guided by the Technical Steering Committee of Africa CDC-AfCFTA.
The Africa Health Security Investment aims to tackle Africa’s health investment challenges, promote economic growth, and enhance health security across the continent.
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