(Ecofin Agency) - The South African biopharmaceutical company Biovac has finally raised the money needed to produce Covid-19 vaccines locally. In July 2021, the company signed a deal to manufacture and distribute covid-19 vaccines from Pfizer and BioNTech laboratories.

Yesterday, Biovac announced it has raised about $150 million from a consortium of nine development banks, including the African Development Bank (AfDB), to produce Pfizer-BioNTech covid-19 vaccines as well as routine vaccines in short supply on the continent.

“COVID-19 has proven that a more geographical spread of vaccine manufacturing is much needed globally, with the African continent having the least number of vaccine manufacturers. We are pleased that the consortium of funders is willing to work with Biovac to create sustainable African vaccine manufacturing, not only to respond to the current pandemic but also to much needed routine vaccines and future pandemic vaccines as well,” said Biovac CFO Craig Mitchell.

This fundraising follows the conclusion in July 2021 of an agreement between Biovac and laboratories BioNTech and Pfizer. The partnership covers the production of 100 million doses of vaccine per year, to be distributed in the 55 countries of the African Union.

The funding is intended to support Biovac's production capacity and the expansion of its vaccine business on the continent. According to data published by Biovac on its website, Africa has nearly five vaccine manufacturers, while it imports more than a billion doses a year, and manufacturing of these vaccines on the continent represents less than 1% of that figure.

The AfDB 2030 Pharmaceutical Action Plan aims to increase local production of pharmaceuticals to 70% by 2030 and vaccines to 60% by 2040.

Chamberline Moko