Africa could earn over $5bn from vaccine market – Gavi
Thursday, November 03, 2022
A health worker administers a Covid-19 jab in Bugesera District. Photo: Craish Bahizi.

Despite high regional demand for vaccines valued at over $1 billion annually, Africa’s vaccine industry provides only 0.1 per cent of global supply.

The observation was made Thursday, November 3, by GAVI, the vaccine alliance, while publishing its 10-point plan with key priorities to achieve the African Union (AU) vision of sustainably expanding vaccine manufacturing capacity across Africa by 2040.

According to the plan, vaccine inequity and hoarding at the start of the pandemic, which resulted in delays in obtaining COVID-19 doses, stimulated new resolve to address future supply security.

In 2021, the AU set a target to produce and supply more than 60 per cent of the vaccine doses on the continent by 2040.

In the last 18 months alone, the alliance highlighted, more than 30 new African manufacturing projects have been announced.

"And estimates indicate that the African vaccine market across all existing and projected novel products could range between $ 2.8 billion and $ 5.6 billion by 2040 demonstrating the potential for a thriving regional industry to emerge.”

Countries empowered

As it stands, Gavi said, African countries are highly empowered to realise the AU’s vision.

For instance, Rwanda recently launched the construction of the BioNTech vaccine manufacturing plant in Kigali that will promote scalable mRNA vaccine production in Africa.

The facility, covering the size of about 30,000 square meters, will be initially equipped with two BioNTainers (one for the production of mRNA, and one for the production of the formulated bulk drug product) and production is expected to commence approximately within 12 to 18 months after their installation.

The country will also be home to the Africa Bio-manufacturing Institute, an institute mandated to among others train, re-skill and upskill professionals in the bio-manufacturing industry.

"As the largest purchaser of vaccines in the world, Gavi’s procurements are shaped by country request. Therefore, ensuring robust demand as well as supply for African-manufactured vaccines will be critical in creating a sustainable market,” the alliance said in a statement.

Gavi’s plan is a response to the AU call to action for the alliance and other stakeholders to concretely support supply security on the continent.

It proposes actions for Gavi and other international organisations, private sector, G7 Development Ministers, and African countries to contribute to a new business model that sustainably invests across the full value chain of the African vaccine industry, in a manner that is consistent with both the AU’s vision and G7 policy commitments.

"For 22 years, as the largest buyer of vaccines in the world, Gavi has worked closely with African countries and manufacturers to favourably shape the market for essential routine and outbreak vaccines,” said Dr Seth Berkley, CEO of Gavi, the Vaccine Alliance.

"Gavi is committed to contribute to the AU’s vision. The plan published today provides a pathway to ensuring vaccine supply security for Africa during pandemics and expanding access to other life-saving vaccines at sustainable, affordable prices.”

Key actions outlined for G7 economies include focusing investments on a sustainable supply of vaccines that would benefit from additional manufacturers, matched with accelerated support to vaccine-access, and potentially backing the Advanced Market Commitment with funding.

To sustainably reach that goal, the plan also underscores that countries, coordinated by the Africa CDC as part of the Partnership for Africa Vaccine Manufacturing (PAVM), can contribute by building plans for vaccine manufacturing that match industry capacity with the specific needs of African markets for priority vaccines.

Sustained investment in human capital, improving regulatory capacity, reducing trade barriers and strong regional coordination will also be a critical part of this effort.