In a significant move to bolster vaccine production and enhance pandemic preparedness in Africa, the International Finance Corporation (IFC) has unveiled an investment and advisory support package for Biovac, a prominent South African biopharmaceutical company.
The IFC’s investment comprises a loan equivalent to $7 million rand, aimed at supporting Biovac’s ongoing production of a diverse range of vaccines, including those for HPV, meningococcal disease, cholera, and various pediatric vaccines.
Beyond the financial support, the IFC and Biovac have formalized a collaboration agreement, with the IFC committing to provide project development support for Biovac’s ambitious plan to construct a new multi-vaccine production facility in Cape Town.
This state-of-the-art plant is poised to significantly enhance Biovac’s production capacity, escalating from the current 150 million doses to an impressive 560 million vaccine doses annually. The financing infusion will not only facilitate the production of traditional bacterial-based vaccines but also empower Biovac to delve into messenger RNA (mRNA)–based vaccines. This strategic move aims to fortify African vaccine value chains, ultimately reducing the continent’s reliance on vaccine imports.
Biovac’s Chief Financial Officer, Craig Mitchell, expressed enthusiasm about the partnership with IFC, emphasizing its critical role in advancing research and development, drug substance, and achieving end-to-end manufacturing capabilities in Africa. Mitchell noted, “We look forward to expanding the partnership with IFC towards realizing the establishment of a large-scale facility capable of producing multiple vaccines on different platforms.”
Cláudia Conceição, IFC’s Regional Director for Southern Africa, highlighted the urgent need for Africa to expand its vaccine production, especially in the aftermath of the COVID-19 pandemic. She stated, “IFC’s investment in Biovac will not only contribute to the growth of Biovac’s vaccine manufacturing capacity but also play a crucial role in advancing the development of the vaccine industry on the continent.”
Biovac stands out as one of the few vaccine companies in Africa with robust product development capabilities. Currently supplying approximately 80 percent of South Africa’s routine pediatric vaccines, Biovac has delivered over 450 million vaccine doses since 2003 to public healthcare facilities in South Africa, Angola, Botswana, Eswatini, Lesotho, Mozambique, and Namibia.
IFC’s investment is expected to fortify Biovac’s financial standing and manufacturing capabilities, aligning with the company’s broader strategy to secure additional capital for its expansion. This investment aligns with IFC’s commitment to supporting vaccine production in Africa and strengthening the healthcare sector across the continent.
The partnership between IFC and Biovac, initiated in 2022, underscores their joint efforts as part of a consortium of nine development finance institutions. The collaboration aims to finance the expansion of Biovac’s vaccine manufacturing capacity, with a particular focus on enabling the production of COVID-19 vaccines and other critical vaccines.
