Biovac secures USD108M for Africa’s first integrated vaccine manufacturing hub

SOUTH AFRICA—Biovac has secured a USD108.3 million financing package to build Africa’s first fully integrated, end-to-end multi-vaccine production facility.

The funding comes from a consortium led by the International Finance Corporation, the European Investment Bank Group, and the European Commission.

According to an April 16 announcement, the package includes a $20 million loan from IFC and a €75 million (USD88.3 million) investment from the EIB Group.

Notably, the EIB component is structured as a “quasi-equity” investment, offering long-term, flexible capital while sharing financial risk.

Furthermore, this tranche is backed by the Human Development Accelerator guarantee program, which the European Commission supports and the EIB Group administers in partnership with the Gates Foundation.

Cape Town facility and production plans

Biovac will construct the new facility at its Cape Town manufacturing site, with completion expected by 2028.

Initially, the plant will focus on producing oral cholera vaccines.

However, the company plans to expand production to include vaccines for polio, pneumonia, and meningitis over time.

Once fully operational, the facility will produce up to 40 million doses annually.

This capacity could address approximately 40% of the global cholera vaccine supply gap while supporting regional immunisation programs supplied through organisations such as UNICEF and Gavi, the Vaccine Alliance.

Strengthening Africa’s vaccine ecosystem

Morena Makhoana, Biovac’s chief executive, emphasized that the project aligns with the company’s long-term vision of strengthening vaccine development and manufacturing within Africa.

He noted that the new facility will not only improve vaccine supply reliability but also promote skills development, technology transfer, and innovation across the continent.

In addition, the project is expected to create more than 340 skilled jobs and approximately 7,000 indirect employment opportunities, contributing to local economic growth.

Strategic partnerships and industry context

Biovac has already taken steps to expand its manufacturing footprint through partnerships.

In 2024, the company signed agreements with Sanofi and EuBiologics to produce and distribute key vaccines across Africa.

The collaboration with Sanofi specifically focuses on manufacturing inactivated polio vaccines.

Meanwhile, the broader vaccine manufacturing landscape in Africa has faced challenges.

In the same year, Moderna withdrew plans to build a USD500 million facility in Kenya, citing a lack of vaccine orders since 2022.

The decision drew criticism from the African CDC, which argued that the company had shifted responsibility for its withdrawal.