Germany invests €20 million in South Africa’s vaccine production

SOUTH AFRICA — In an alliance to bolster global healthcare, the Department of Science and Innovation (DSI) and Germany’s KfW Development Bank have inked a historic financing agreement.

This pivotal deal paves the way for South Africa to receive €20 million (US$21.3 million) over the next five years, generously provided by the German government through KfW.

The primary aim? To revolutionize vaccine production, heralding a new era of healthcare self-sufficiency in the Rainbow Nation.

Under the terms of this extraordinary agreement, the €20 million (US$21.3 million) grant is exclusively earmarked for financing cutting-edge equipment essential for developing, producing, and certifying active pharmaceutical ingredients crucial for vaccine production on South African soil.

Higher Education, Science, and Innovation Minister Blade Nzimande unveiled this momentous partnership, emphasizing the profound impact it will have.

He revealed that the grant will serve a multifaceted purpose, with a significant focus on supporting the mRNA technology transfer hub hosted by South Africa for the World Health Organization (WHO).

This initiative goes far beyond mere financial assistance; it represents a giant stride towards building vaccine manufacturing capacity in low and middle-income countries.

Nzimande emphasized the pivotal role played by the technology transfer hub in achieving its overarching objective.

This hub has a primary aim, which is to establish or bolster sustainable mRNA vaccine-manufacturing capabilities specifically in regions that currently have limited or no such capacity in place.

To accomplish this, it seeks to introduce cutting-edge technologies in low and middle-income countries. Simultaneously, the hub aims to foster and facilitate regional research and development initiatives.

Moreover, the technology transfer hub places a strong emphasis on enhancing regional bio-manufacturing expertise and workforce development.

By doing so, it aims to not only build the necessary infrastructure for mRNA vaccine production but also ensure that the region has a skilled workforce capable of contributing effectively to this critical endeavor.

One of its significant goals is to develop regulatory capabilities that can support and expedite the regional approval and distribution processes for mRNA vaccines.

This strategic move by the German government stands as a testament to its commitment to bolster vaccine production in South Africa, a country that has played an instrumental role in the global fight against the COVID-19 pandemic.

A game-changing agreement

The agreement, solidified on July 25, 2023, designates the DSI as the recipient of KfW’s financial support on behalf of the South African government.

Moreover, it formally recognizes the DSI and its director-general, Phil Mjwara, as the custodians and leaders of South Africa’s vaccine manufacturing strategy.

This act of trust in the DSI’s leadership underscores the department’s ability to effectively manage international funds.

Minister Nzimande lauded this collaboration as a pivotal moment: “The German investment will build on the strategic investments by DSI and other partners, and KfW has agreed to work in alignment with the South African vaccine manufacturing strategy.”

He also highlighted that the funding could catalyze transformative initiatives in line with this strategy.

Empowering a continent

The South African Medical Research Council (SAMRC) will play a central role as the project executing agency, reporting directly to the DSI through a dedicated steering committee.

Glenda Gray, SAMRC’s president and chief executive officer, expressed her excitement about participating in this groundbreaking program.

She emphasized that it would provide invaluable support in establishing a vaccine manufacturing industry in sub-Saharan Africa.

Gray further pointed out that this partnership would bridge crucial gaps in the pre-clinical research domain.

KfW’s commitment extends to appointing an implementation consultant, who will offer sector-specific support for project planning, management, monitoring, and evaluation, among other critical functions.

Ambassador Andreas Peschke, representing the German Embassy in Pretoria, lauded South Africa’s pivotal role in strengthening continental vaccine manufacturing capacities.

He underlined that “the country is at the very forefront of continental efforts for local pharmaceutical and vaccine research and production.”

Peschke’s words reflect the global significance of this collaboration and South Africa’s rising prominence in the realm of healthcare innovation.

For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.