Afreximbank pledge $2bn to Africa Health Security Plan

Kampala, Uganda | THE INDEPENDENT | Afreximbank and the Africa Centers for Disease Control and Prevention have announced a new cooperation agreement at the Global Forum for Vaccine Sovereignty and Innovation in Paris, France. Under this partnership, Afreximbank has committed a $2 billion facility to the “Africa Health Security Investment Plan,” aimed at bolstering the continent’s health product manufacturing capabilities.

The initiative focuses on supporting the African Pooled Procurement Mechanism and the Platform for Harmonized African Health Products Manufacturing. It also aims to complement GAVI’s African Vaccine Manufacturing Accelerator, which plans to provide up to $2 billion in financing to African health and pharmaceutical product manufacturers over the next decade.

African pharmaceutical companies face significant challenges from global health, security, and economic crises, despite driving investments and technological advancements in the health sector. Key barriers include low investor confidence, inadequate infrastructure, trade-related obstacles, and regulatory complexities, hindering potential investments despite available funds.

The partnership underscores a strategic continental effort to bridge investment gaps critical for achieving the African Union’s goal of locally manufacturing 60% of vaccines by 2040 and ensuring self-reliance during health crises like pandemics.

Prof. Benedict Oramah, President of Afreximbank, expressed enthusiasm about the initiative, highlighting its potential to transform health security in Africa. He emphasized Afreximbank’s commitment to leveraging its financial tools, including project preparation funding, project finance, guarantees, and equity investments through its subsidiary FEDA.

Dr. Jean Kaseya, Director General of Africa CDC, hailed the agreement as a landmark for African vaccine and health product manufacturing. He stressed the importance of investing in health security to achieve self-reliance in health countermeasures and safeguard Africa’s health.

The “Africa Health Security Investment Plan” will enable Afreximbank to support critical health projects identified by Africa CDC, combining institutional and financial resources, equity and debt financing, guarantees, venture capital, capacity building, and risk-sharing to attract more health investments in Africa.