The African Development Bank is establishing a foundation that aims to spend $3 billion over the next decade to bolster the continent’s pharmaceutical and vaccine manufacturing sector.
The bank’s board approved the move, according to a statement on Monday, saying it was in response to calls from the African Union during its summit in February to ensure the continent has greater independence regarding basic medical goods, highlighted by the difficulties in procuring vital supplies during the COVID-19 pandemic.
How it will work: The new African Pharmaceutical Technology Foundation will be hosted in Rwanda. The foundation will operate independently of AfDB and will raise its own funds, including from governments.
The goal is to staff the institution with experts on innovation, intellectual property rights, and public health policy, the AfDB said in a statement. In addition to expanding the research and development ecosystem and local skill sets, the staff will seek to act as an intermediary on behalf of the African pharmaceutical sector when dealing with outside firms. This will include efforts to gain access to IP-protected technologies and know-how.
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Behind AfDB's $3B plan for African health manufacturing
The African Development Bank Group has committed to invest $3 billion over the next decade in vaccine and pharmaceutical manufacturing. Devex spoke with a bank official about what those investments will include.
Why it’s needed: African nations import more than 70% of all their medicines, the bank noted. “Africa can no longer outsource the healthcare security of its 1.3 billion citizens to the benevolence of others,” AfDB President Akinwumi Adesina said in a statement.
According to a 2019 study from the Center for Global Development, low-income countries generally pay 20 to 30 times more for everyday medicines than high-income countries. The center also found in a 2021 report that 22 countries in Africa lack any pharmaceutical manufacturing capacity, and about 80% of all manufacturers are concentrated in just eight countries.
Push for independence: The foundation comes as AfDB is also creating a new $1.5 billion financing facility focused on food security in Africa, which will also help reduce external shocks and dependence on foreign powers.
About the author
Shabtai Gold
Shabtai Gold is a Senior Reporter based in Washington. He covers multilateral development banks, with a focus on the World Bank, along with trends in development finance. Prior to Devex, he worked for the German Press Agency, dpa, for more than a decade, with stints in Africa, Europe, and the Middle East, before relocating to Washington to cover politics and business.
