A pooled system for African pharmaceutical procurement is crucial. Africa must reduce its dependence on imported medicines. Delegates at a G20 event reached this conclusion. The discussion highlighted Africa's vulnerability in its supply chain. The COVID-19 pandemic exposed this. Recent US and European aid cuts emphasised this.
The Need for African Pharmaceutical Procurement
Africa's lack of local production is a pressing issue. The continent imports up to 90% of its medicines. It also imports 99% of its vaccines. This dependency makes nations vulnerable during global shortages. African countries were often among the last to receive supplies. The African Union (AU) has set an ambitious goal. It aims to make 60% of vaccines locally by 2040. We will lose unnecessary lives in the next pandemic. This will occur without significant investment in healthcare.
Reforming African Pharmaceutical Procurement
African nations must aggregate their demand. A pooled African pharmaceutical procurement mechanism can achieve this. It would create essential economies of scale for makers. This provides market certainty for new investment. International procurement agencies also need significant reform. Gavi is the largest single buyer of vaccines for Africa. Gavi has committed to policy changes to support African makers. But it has not set specific procurement targets. International agencies must source products for Africa from African suppliers.
Delegates at the event made key recommendations. These will be forwarded to G20 finance and health ministers.
- Accelerate Plans: Enhance initiatives to boost Africa's manufacturing capacity.
- Leverage African Institutions: Use the AfCFTA and Africa CDC. These bodies can establish the African pharmaceutical procurement mechanism.
- Alternative Financing: Develop new models to counter reduced foreign aid.
Scaling Production and Ensuring Affordability
Afreximbank’s CEO underscored the scale of the challenge. Africa has 1.3 billion people. It has only 375 pharmaceutical manufacturers. These are heavily concentrated in Egypt and South Africa. This trend must be reversed. African nations need manufacturing capacities. However, investors require a stable market for their products. This reinforces the need for a guaranteed offtake. A system for African pharmaceutical procurement provides this.
South Africa's Health Minister raised an important point. He questioned the potential costs of local production. "We must decide," he said. "Should we prioritise buying locally, regardless of the price?"
Investing in Research and Innovation
Investment must extend beyond manufacturing plants. It must cover the entire value chain. This includes scientific research and innovation. Science is crucial for the continent’s progress. There is a clear link between science, innovation, and GDP. Africa accounts for approximately 15% of the global population. It has a quarter of the world's disease burden. Yet, it contributes only 2% of global research output. Investing in research is vital for our communities. It helps nurture a sustainable pharmaceutical industry.