DFC, IFC, Proparco, and DEG support South African Covid-19 vaccine maker Aspen
To support the development of vaccines for African countries, U.S. International Development Finance Corporation (DFC), IFC, the French Development institution Proparco, and DEG – the German development finance institution, today announced a joint financing package for Aspen Pharmacare Holdings Limited, a leading pharmaceutical company in South Africa that is playing a major role producing Covid-19 treatment therapies and vaccines on the African continent.
The €600 million long-term financing package, which is subject to the fulfillment of certain conditions precedent, is mobilised by IFC, the private sector arm of the World Bank Group. It includes €200 million from IFC’s own account; €156 million from Proparco, a subsidiary of Agence Française de Développement (AFD Group); €144 million arranged by DEG; and €100 million from DFC. It’s the largest healthcare investment and mobilisation IFC has led globally to date.
The announcement about the financing package for Aspen also 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.
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. The four development finance institutions also have the objective of helping to facilitate an increase in vaccine manufacturing know-how and knowledge sharing within Africa by partnering with Aspen.
Aspen is expanding its role in fighting the Covid-19 pandemic in Africa. Aspen has partnered with Johnson & Johnson to compound, finish, fill and package the Janssen (a Johnson & Johnson company) Covid-19 vaccine at its sterile facility in South Africa. Aspen has 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 Johnson & Johnson filling, finishing and packaging capacity for its Covid-19 vaccine, with the first batches having already been manufactured.
“We are grateful for the opportunity to access this funding package arranged by IFC. Aspen’s teams are working tirelessly to optimise 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.
“Covid-19 has again highlighted Africa’s reliance on global vaccine supply chains, leaving the continent vulnerable to disruptions and delays,” said Makhtar Diop, IFC’s managing director. “By partnering with Aspen, a leading vaccine manufacturer in Africa, and collaborating with partners in the development finance community, the World Bank Group can contribute to the continent’s continued vaccine manufacturing development and support knowledge sharing and technology exchanges. Together, we hope this will save lives now and help ensure that Africa is prepared ahead of any future health crises.”
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.