Afreximbank and Africa CDC pledge $2 billion in facilities to support Africa's Healthcare and Pharmaceutical Manufacturing – Africa CDC

Paris, France; 20 June 2024: The African Export-Import Bank (Afreximbank or the Bank) and the Africa Centers 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 on Sovereignty of Vaccines and Innovation in Paris, France. Through this collaboration, Afreximbank has committed a $2 billion facility to the Africa Health Security Investment Plan to support the continent's health product manufacturing ambition. This initiative will focus on the African Joint Procurement Mechanism (APPM) and the Platform for Harmonized African Health Products (PHAHM).

This initiative is essential in addressing Africa's health investment challenges, promoting economic development and strengthening health security across the continent. It also aims to complement GAVI's innovative financing mechanism, the African Vaccine Manufacturing Accelerator (AVMA), which is set to provide up to $1 billion in funding to African health and pharmaceutical manufacturers over the next ten years.

African pharmaceutical companies face severe impacts of global health, safety and economic challenges, yet they are the drivers of investment and technological advancements that the health sector needs. Low investor confidence, lack of adequate infrastructure, trade-related barriers and regulatory challenges are some of the constraints to investment in Africa's health sector. While funds may be available, many potential investments do not materialize due to financial and non-financial barriers. Coordinated efforts at continental level are essential to reverse this trend and align with the New Public Health Order.

Closing the investment gap will be essential to achieving the African Union's ambitions to produce 60% of needed vaccines locally by 2040, as well as implementing all other countermeasures needed to ensure self-sufficiency , 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 delighted to be part of another important event that will change the course of health security in Africa. This facility will help strengthen the production of health and pharmaceutical products in Africa through our comprehensive and existing interventions such as project preparation finance, project and trade finance and guarantees. Furthermore, we intend to put our full weight behind this facility with equity investments through our subsidiary FEDA – the African Export Development Fund.

Today is a big day for African vaccine manufacturing, as well as healthcare manufacturing in general, as we welcome these major investment announcements that will change the face of healthcare manufacturing in Africa for years to come. Protecting our future means investing in our ability to achieve self-reliance in all health countermeasures; vital to fulfilling our mission of maintaining Africa's health, said HE 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 Africa's 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 promote and attract more health investments in Africa.

The “Africa Health Security Investment Plan” is built on three main pillars:

Technical Assistance and Advisory Services: A single entry point for health project preparation and implementation, with capacity building support from CDC Africa.
Investment Project Pipeline: A clear and forward-looking list of health investment projects in Africa, accessible through the Afreximbank Project Portal.
Regulatory and normative support: implementation of programs to remove barriers and create an enabling environment for trade and investment, led by the Africa CDC-AfCFTA Technical Steering Committee.

Health Security Investment in Africa aims to address Africa's health investment challenges, promote economic growth and increase health security across the continent.

ENDS
About partners

About Afreximbank

The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For 30 years, the Bank has put in place innovative structures to provide financing solutions that support the transformation of Africa's trade structure, accelerating industrialization and interregional trade, thus driving economic expansion in Africa. A staunch supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to support implementation of AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is establishing a $10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbanks total assets and guarantees were over $37.3 billion and its shareholders' funds reached $6.1 billion. Its total revenue reached US$2.6 billion during 2023. Afreximbank has investment grade ratings set by GCR (international scale) (A), Moodys (Baa1), Japan Credit Rating Agency (JCR) (A -) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called Fund for Export Development Africa (FEDA) and its insurance management subsidiary, AfrexInsure (together, the Group). The bank is headquartered in Cairo, Egypt. For more information, visit: www.afreximbank.com

About Africa CDC: The Africa Centers for Disease Control and Prevention (Africa CDC) is an autonomous continental public health agency of the African Union that supports member states in their efforts to strengthen health systems and improve surveillance, emergency response and prevention and control of diseases. Learn more at: http://www.africadc.org

Media contacts

For Africa CDC
Margaret Edwin,
Director of Communications and Public Information Division: Africa CDC | Tel: +251 986 632 878 Email: [email protected]

For Afreximbank
Vincent Musumba
Manager, Communications and Events (Media Relations)
Email: [email protected]
Phone: +20 2 24564100 /1/2/3