AfreximBank approves US$2bn for Africa vaccines
THE AfreximBank has approved a US$2 billion facility under the African Vaccine Acquisition Trust (AVAT), which will see the continent receiving 400 million doses of Covid-19 vaccines.
The bank said all African Union (AU) member states through AVAT, established in November last year, will have access to 220 million doses of the Johnson & Johnson single-shot Covid-19 vaccine, with the potential to order additional 180 million doses.
“The transaction was made possible through the US$2 billion facility approved by the AfreximBank, who also acted as financial and transaction advisers, guarantors, installment payment advisers and payment agents,” said the regional financier.
It said most of the supplies will be produced at the giant pharmaceutical manufacturing plant in South Africa, operated by Aspen Pharma.
“The vaccines will be available to African countries through the African Medical Supplies Platform (AMSP), over a period of 18 months,” said AfreximBank.
“The successful conclusion of the agreement was made possible by the support of the United Nations Economic Commission for Africa (ECA) and the UN International Children’s Emergency Fund (UNICEF), who supported the negotiation with Johnson & Johnson.
“UNICEF is also acting as procurement and logistics agent.”
AfreximBank said the African Vaccine Acquisition Task Team (AVATT) was supported in terms of advice on various aspects by the World Health Organisation (WHO).
Prior to the conclusion of the agreement with Johnson & Johnson, African States were asked to make pre-orders for the vaccines and many countries showed strong preference for that particular vaccine.
The countries will be able to procure the vaccines either using cash, or a facility from AfreximBank. “Most countries have already completed their pre-orders.
“The direct acquisition of vaccines by the African countries through the AVATT initiative is part of the continental objective to achieve a minimum of 60 percent immunisation of the African population, in order to eliminate Covid-19. This target is in line with targets set in other regions such as Europe and the United States,” said AfreximBank.
The international donor community has pledged to provide 27 through the COVAX Initiative, which is coordinated by Gavi, the Vaccine Alliance, the Coalition for Epidemic Preparedness Innovations (CEPI) and the WHO, while Africa should find the rest.
South Africa President, Cyril Ramaphosa, who is also the AU champion for the Covid-19 vaccine strategy and acquisition, and AVATT chairman, has welcomed the historic agreement, which he personally initiated directly with the company, during his tenure as AU chair.
“This agreement is a significant milestone in protecting the health of all Africans.
“It is also a powerful demonstration of African unity and of what we can achieve through partnership between the state sector, the private sector and international institutions that puts people first,” President Ramaphosa was quoted as saying.
AfreximBank president Professor Benedict Oramah was also quoted saying his institution was proud to be associated with the historic and collective effort.
“In the midst of a very tight Covid-19 vaccine market, we are highly honoured to have been given the opportunity by the AU to facilitate this impactful transaction under the auspices of the AVATT.
“Acting as financial and transaction advisors, guarantors, installment payment facility arrangers and payment agents, we look forward to beginning the deployment of the US$2 billion vaccine procurement facility approved by the bank’s board of directors towards assisting the continent to begin to rid itself of the pandemic and rebuild its economy,” he said.
Prof Oramah said the financing will support intra-African trade and the bank has already commenced engagement with its financial partners to secure the additional funding that would support procurement if Africa decides to procure the additional 180 million doses. —chronicle.co.zw
