DFIs unite to boost African Pharmaceutical Manufacturing Post-Cairo Forum

EGYPT—Development finance institutions (DFIs) are ramping up their efforts to help Africa achieve self-sufficiency in pharmaceutical and vaccine manufacturing.

This initiative represents a significant leap forward in the continent’s quest to reduce dependence on external supply chains and bolster pandemic preparedness.

Key DFIs such as the African Export-Import Bank (Afreximbank), the African Development Bank, the European Investment Bank (EIB), the World Bank, the International Finance Corporation (IFC), and the French Development Agency have been exploring investment strategies to enhance local pharmaceutical production.

Their efforts gained momentum during the 2nd Vaccine and Health Products Manufacturing Forum held in Cairo from February 4-6, 2025.

This event gathered stakeholders from Africa CDC, Gavi, the Vaccine Alliance, and the Regionalized Vaccine Manufacturing Collaborative (RVMC), while Egypt’s Unified Procurement Authority (UPA) played host. 

At this forum, these institutions detailed their current and forthcoming investments aimed at supporting regional initiatives.

For instance, Afreximbank highlighted its progress in launching a pledged $2 billion facility to back healthcare and health product manufacturing.

Likewise, the IFC and EIB introduced new financing initiatives they are developing in partnership with others.

This recent momentum builds on discussions from the 2023 gathering in Marrakesh, Morocco, where 25 vaccine manufacturing initiatives were identified across the continent, with 10 already having established production capacity.

 Egypt has emerged as a role model for bridging Africa’s manufacturing gap, demonstrating what can be accomplished through strong political commitment, strategic investments, and regulatory rigor.

This progress aligns with the African Union’s ambitious goal to manufacture 60% of vaccines locally by 2040.

Notably, in December 2024, the World Health Organization recognized Egypt as the first African country to reach Maturity Level 3 for medicines and vaccines.

This milestone signifies a well-regulated and stable pharmaceutical sector, further highlighted by Egypt’s production of its first locally manufactured insulin.

However, despite these advancements, broader challenges persist across the continent. Fragmented regulatory systems, limited technology, workforce shortages, a lack of off-take guarantees, and financing gaps continue to impede regional manufacturing growth.

To tackle these issues head-on, collaboration between industry and academia is essential for developing STEM curricula, internships, and on-the-job training, as highlighted by Dr. Chiluba Mwila, talent development lead for Africa CDC’s Platform for Harmonized African Health Manufacturing (PHAHM).

New financing mechanisms and policy shifts are being rolled out to address these hurdles.

For example, Gavi launched the African Vaccine Manufacturing Accelerator (AVMA) in June 2024, securing US$1.2 billion in pledges to expand vaccine production in Africa.

Furthermore, the newly established African Pooled Procurement Mechanism aims to enhance demand certainty and market sustainability.

The African Medicines Agency is also pivotal in speeding up approvals and ensuring safety through stronger regulatory coordination. 

The African Continental Free Trade Area (AfCFTA) is recognized as a key driver in expanding regional trade and enhancing market access.

As Africa aims to manufacture 60% of its vaccines by 2040, sustained investment, harmonized regulation, and cross-sector collaboration will be vital.

New partnerships, such as those between Afrigen and Biogeneric Pharma in mRNA technology transfer, highlight Africa’s expanding capacity to manufacture vaccines, diagnostics, and therapeutics, marking critical steps toward reducing reliance on imports.

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