Afreximbank, CDC announce $2bn investment for Africa’s health sector

The African Export-Import Bank and Africa CDC have unveiled a US$2 billion facility for Africa’s health and pharmaceutical products manufacturing.

According to a statement issued by Afreximbank on Thursday, the development finance institution and Africa Centers for Disease and Prevention Control renewed their partnership with a new cooperation agreement on the sidelines of the Global Forum for Vaccine Sovereignty and Innovation in Paris, France.

The statement read, “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 and the Platform for Harmonised African Health Products Manufacturing .

“This initiative is pivotal in addressing Africa’s health investment challenges, promoting economic development, and strengthening health security across the continent,” the statement read.

The statement further said, “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,” the statement added.

“Closing the investment gap will be crucial to achieving the African Union’s ambition of manufacturing 60 per cent 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 Orama, President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, 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.

On his part the Director General, Africa CDC, Jean Kaseya, said,”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.”