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Afreximbank and Africa CDC pledge US$2 billion facility
in support of Africa Health
and Pharmaceutical Products
Manufacturing
(Paris, France) -
African Export-Import Bank
(Afreximbank) or the Bank)
and the Africa Centres for
Disease Control and
Prevention (Africa CDC) have
renewed their partnership
with a new cooperation
agreement announced today on
the sidelines of the Global
Forum for Vaccine
Sovereignty and Innovation
in Paris, France.
Through this collaboration,
Afreximbank has committed a
US$ 2 billion facility to
the “Africa Health Security
Investment Plan” to support
the health product
manufacturing ambition of
the continent. This
initiative will focus on the
African Pooled Procurement
Mechanism (APPM) and the
Platform for Harmonized
African Health Products
Manufacturing (PHAHM).
This 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,
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.”
“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” said H.E.
Dr. Jean Kaseya, Director
General, Africa CDC.
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:
1)
Technical Assistance and
Advisory Services: A
single-entry point for
health project preparation
and implementation, with
capacity-building support
from the Africa CDC.
2) Investment Project Pipeline:
A clear, forward-looking
list of health investment
projects in Africa,
accessible through
Afreximbank Project Portal.
3)
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.
The Africa Health Security Investment aims to
tackle Africa's health
investment challenges,
promote economic growth, and
enhance health security
across the continent.
Source: Afreximbank
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