South African biopharmaceutical company Biovac is being supported by the European Investment Bank (EIB) Group, the European Commission, and the International Finance Corporation (IFC) in the development of what they said is Africa’s first end-to-end multi vaccine manufacturing facility.
Biovac currently has drug substance manufacturing capabilities through its Oral Cholera Vaccine development and commercial manufacturing project, in partnership with the International Vaccine Institute.
The partners say that the development of the new manufacturing capacity supports access to essential vaccines while strengthening Africa’s preparedness for future pandemics.
Due for completion by 2028, the new facility will initially produce oral cholera vaccine and later expand to include vaccines for polio, pneumonia and meningitis. At full capacity it will produce between 30 and 40 million doses each year. This will address around 40% of the global cholera vaccine supply gap, as well as meeting regional demand through channels such as UNICEF and the vaccine alliance known as Gavi.
The EIB Group says that around 50% of the manufacturing equipment for the facility will come from European suppliers and, once completed, will lead to the creation of 340 skilled jobs and 7000 indirect jobs, fostering innovation and bolstering Africa’s long-term heath resilience.
Morena Makhoana, chief executive of Biovac said: “Expanding local vaccine development and end-to-end manufacturing on African soil for global supply has always been Biovac’s vision, and this funding enables us to accelerate it. The new facility will ensure a reliable supply of life-saving vaccines for Africa and expand our role in building skills, advancing technology transfer and driving vaccine innovation that will benefit generations to come.”
The financial support will see the EIB provide €75 million ($88 million) as a “quasi-equity investment” along with a financing package, led by the IFC, which includes a $20 million senior loan. The EIB Group says the quasi-equity, a form of long-term financing, is provided under the Human Development Accelerator (HDX) guarantee programme, an initiative backed by the European Commission and implemented by the EIB Group, in partnership with the Gates Foundation. This financing is designed to provide flexible capital for growth while sharing risk.
The Biovac project also contributes to what is known as the Team Europe initiative on Manufacturing and Access to Vaccines, Medicines and Health Technologies in Africa (MAV+), part of the EU’s Global Gateway strategy. Launched in 2021 the Global Gateway aims to mobilise up to €300 billion in investments, to transform the digital, climate and energy, transport, health, and education and research sectors.
The EIB adds that Biovac’s project also supports the African Union’s Vision 2040 goal of achieving 60% local vaccine production, as well as advancing several of the UN’s Sustainable Development Goals: including 'good health and wellbeing', and 'industry, innovation and infrastructure'.
Further reading:
- Global mRNA vaccine research will continue say researchers
- Concerns raised about UK vaccine manufacture capability
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