BIO invests in vaccine production in Africa

BIO’s investment is part of a financing package totalling US 600 million, arranged by IFC, DEG, Proparco and the U.S. International Development Finance Corporation (DFC), for Aspen Pharmacare Holdings Limited, a leading pharmaceutical company in South Africa that is playing a major role in producing covid-19 treatment therapies and vaccines on the African continent.

The long-term financing package, which is subject to the fulfilment of certain conditions precedent, is mobilised by IFC, the private sector arm of the World Bank Group, and is the largest healthcare investment and mobilization IFC has led globally to date.

The announcement of this financing package for Aspen comes as governments across Africa have called on the international community to bolster the continent’s vaccine supply chain to respond to covid-19 and promote longer-term health sector resilience.

“If we really want to defeat the covid-19 pandemic, we must pursue longer-term solutions. This investment in strengthening the local manufacturing of vaccines in South Africa is an important step forward to increase the accessibility of vaccines worldwide. Because none of us will be safe until everyone is safe,” says Meryame Kitir, Minister of Development Cooperation and Major Cities.

The financing will help Aspen, Africa’s largest pharmaceutical company, to refinance existing debt and strengthen the company’s balance sheet, supporting Aspen’s operations, including production of vaccines, and other therapies in African and emerging markets. By investing in Aspen, BIO and the other development finance institutions also have the objective of helping to facilitate an increase in vaccine manufacturing know-how and knowledge sharing within Africa.

Aspen is expanding its role in fighting the covid-19 pandemic in Africa. It recently built a fully certified sterile injectables facility at its existing site at Gqeberha (formally known as Port Elizabeth), South Africa. With this new facility, Aspen was able to offer Janssens (a Johnson & Johnson company) filling, finishing and packaging capacity for its covid-19 vaccine, with the first batches having already been manufactured.

“Although international efforts to increase the availability of vaccines to the African population should reduce the suffering and deaths from covid-19 on the continent, having its own large-scale vaccine production facilities is key to keep pandemics in check without having to depend on the kindness of others. BIO is proud to contribute to the joint effort of the Development Finance Institutions to enhance Africa’s self-reliance for the production of vaccines.” says Luuk Zonneveld, BIO’s CEO. “With our investment, we are responding to the call of Belgian’s Minister for Development Cooperation Ms. Meryame Kitir to strengthen Africa’s autonomous vaccine production.”

“We are grateful for the opportunity to access this funding package arranged by IFC. Aspen’s teams are working tirelessly to optimize production of the Johnson & Johnson covid-19 vaccine for Africa at our manufacturing site in Gqeberha, South Africa. We are actively seeking opportunities to further extend and capacitate covid-19 vaccine manufacturing at this world class production facility. Aspen is seeking to play a meaningful role in contributing to the objective of delivering the majority of Africa’s needs from production sites located in Africa,” said Stephen Saad, Aspen’s Group Chief Executive.

About BIO

BIO is a Development Finance Institution that supports private sector growth in developing countries. BIO provides long-term financing to enterprises, financial institutions, and private infrastructure projects, as well as grants for feasibility studies and technical assistance programmes. BIO operates as an additional partner to financial institutions and aims to maximise both development impact and return on investment. BIO is a member of EDFI (European Development Finance Institutions) and has more than EUR 1 billion of assets under management.

For more information

Ben Jehaes
Manager External Relations
ben.jehaes@bio-invest.be
+32 495 54 78 40

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