In December 2023 Gavi shared the news that the African Vaccine Manufacturing Accelerator (AVMA) has been approved by the board. The “innovative financing instrument” is expected to make up to US$ 1 billion available over the next 10 years to encourage vaccine manufacturing in Africa. This approval has been “welcomed” by the Africa CDC, which has prioritised regional manufacturing in plans to improve access to health interventions.
Gavi states that the AVMA will support the “sustainable growth” of the continent’s manufacturing base. This has the benefits of contributing to “healthy global vaccine markets” and boosting outbreak and pandemic prevention, preparedness, response, and resilience.
Why is this important?
Gavi highlights the “strategic importance” of access to vaccine manufacturing, which was clear during the COVID-19 pandemic when areas with the “strongest” research, manufacturing, and regulatory ecosystems were the first in line for COVID-19 vaccines. By comparison, other regions were “locked out of access” as “vaccine nationalism and market failure initially held sway”.
“A sustainable expansion of Africa’s vaccine manufacturing capacity would have a double payoff for the continent, contributing to the growth of a high-value biotechnology sector on the continent.”
“No region felt the negative effects of COVID-19 vaccine inequity more than Africa. And no region stands to benefit more from sustainable growth in its vaccine manufacturing sector.”
Current demand for vaccines in Africa is valued at more than US$ 1 billion, with this figure “projected to grow” in line with population growth. Africa accounts for “around 20%” of the global population. However, the continent’s vaccine industry provides “only around 0.2% of global supply.” Not only would investment in the industry benefit Africa, but the “overall health” of global markets.
In 2021 the African Union Heads of States and Governments established PAVM under the Africa CDC, with the goal of enabling the African vaccine manufacturing industry to develop, produce, and supply more than 60% of total doses required on the continent by 2040.
A natural partner
Gavi describes itself as a “natural partner” to help “chart a collective path” towards a sustainable manufacturing ecosystem in Africa. It has become “one of the world’s largest buyers of vaccines” since 2001 and has close collaboration with African countries and manufacturers already.
Furthermore, the ten-point plan for developing and strengthening vaccine manufacturing identifies “key actions” to diversify and secure vaccine supply in support of the African Union’s (AU) vision. Among these actions is the need for Gavi to update the market shaping model to assign “greater value” to vaccine supply resilience in Africa.
Within the plan was the case for a new financial instrument to “send a powerful signal” to global markets that Gavi is supporting the development of African vaccine manufacturing. Thus, AVMA will seek to deliver the “right balance” of incentives to encourage investment in Africa and the entrance of new manufacturers at a viable scale.
AVMA
Gavi emphasises that the biotech sector in Africa is “still young”, with new manufacturers needing time to build the production scale for sustainability. AVMA offers two types of incentive payments to offset some of the initial costs:
- The milestone payment – will be triggered when a manufacturer producing one of the vaccines in the Gavi priority vaccine market group obtains WHO prequalification (PQ). The payment is targeted to support manufacturers to offset some of the financial burden of meeting the standards for PQ and helps to bridge the period between prequalification and production.
- These are calibrated to provide the greatest incentive to invest in modes of manufacturing likely to support pandemic preparedness.
- Highest milestone payments of US$25 million will accrue to manufacturers that receive prequalification for vaccines produced with a ‘pandemic ready’ technology platform.
- Lowest milestone payments of US$10 million will accrue to manufacturers that receive prequalification for ‘fill and finish’ manufacturing of one of the vaccines in the priority category.
- The accelerator payment – will be paid as a per-dose ‘top-up’, in addition to the offered market rate awarded through Gavi-UNICEF tenders.
- Highest payments, around US$0.50 per dose, will go to end-to-end manufacture of priority market vaccines and vaccines produced using ‘pandemic ready’ technology.
- Lowest payments are paid for lower cost ‘fill and finish’ manufacturing to incentivise a more sustainable end-to-end business model.
A game changer
Dr Jean Kaseya, Africa CDC Director General, commented on the announcement in December, describing it as a “significant moment for Africa”.
“The targeted USD 1 billion from Gavi to African manufacturers is a game changer for the continent and advances our efforts towards vaccine self-reliance. Africa CDC remains determined that Africa should produce its vaccines and protect the lives of all Africans.”
Dr Kaseya believes the AVMA is “an accelerator” towards AU’s ambitious target.
“Gavi has been an incredible partner in this; we will continue to advance together on this journey of self-reliance. Together, we are united with a mission for vaccine equity.”
David Marlow, Gavi’s Interim CEO, is grateful for the “incredible close collaboration” with AU and Africa CDC to support “our shared vision of a thriving, sustainable African vaccine ecosystem”.
“AVMA is an important step forward, sending a powerful signal to global markets that Gavi is serious about its efforts to support this vital initiative.”
What do you think the AVMA will do for Africa vaccine manufacturing, and will it be enough to truly encourage swift and sustainable industry growth? For more on this important subject, do get your tickets to the Congress in Washington next year. If you can’t make it, do subscribe to our newsletters here!
