AfDB Backs Biovac’s New Vaccine Manufacturing Facility in Cape Town

Africa imports more than 99 per cent of the vaccines used across the continent, despite carrying a heavy burden of vaccine-preventable illnesses.

The African Development Bank Group has finalised a loan of up to $15 million for South African vaccine maker Biovac to build a multi-vaccine manufacturing facility in Cape Town, strengthening Africa's ability to produce essential vaccines closer to the communities that need them. The project is expected to lift Biovac's annual manufacturing capacity to as many as 500 million doses and support Africa's wider push for greater health security and reduced dependence on overseas suppliers.

Africa imports more than 99 per cent of the vaccines used across the continent, despite carrying a heavy burden of vaccine-preventable illnesses. The African Union has set a target for local manufacturers to supply 60 per cent of Africa's vaccine needs by 2040.

Biovac's facility, expected to be completed by 2028, will initially make oral cholera vaccines. Production will later expand to include inactivated polio vaccine, pneumococcal conjugate vaccine for pneumonia, and meningitis vaccines. The company is set to become Africa's first end-to-end producer of oral cholera vaccine and South Africa's first local manufacturer of inactivated polio vaccine. Technology-transfer partnerships with Sanofi, the International Vaccine Institute, Biological E, EuBiologics and Bharat Biotech will support the rollout.

Jobs and specialist skills in South Africa

The expansion is projected to create about 340 full-time jobs, with women expected to fill an estimated 43 per cent of roles and young people around 30 per cent. Biovac already employs more than 300 people, half of them women.

The company will also widen training in vaccine manufacturing, quality control and regulatory science through partnerships with South African universities and regional training institutions. This could help develop a deeper pool of specialised skills for Africa's pharmaceutical industry.

AfDB Vice President Solomon Quaynor said the investment would build health sovereignty, support regional value chains and give the continent stronger capacity to respond during future health emergencies.

Funding tied to Africa's vaccine plans

The project will connect with Gavi's African Vaccine Manufacturing Accelerator, a $1.2 billion programme that provides milestone payments to manufacturers after they receive World Health Organization prequalification. The scheme also offers per-dose support for vaccines supplied through UNICEF tenders.

The finance package is led by the International Finance Corporation, with further backing from the Human Development Accelerator programme, an EU-supported initiative implemented by the European Investment Bank alongside the Gates Foundation. Grants and global health partners will also support technology transfers for new products.

A bigger role for Biovac

Founded in 2003 with the South African government, Biovac has supplied routine paediatric vaccines for more than two decades and delivered over 450 million doses across Southern Africa, including COVID-19 vaccines.

Biovac Chief Executive Officer Morena Makhoana said the facility could help change Africa's position in the global vaccine market, moving the continent closer to producing more of the health solutions it relies on.