
From the newsletter
African vaccine manufacturers will be able to sell up to 70 million vaccine doses under a proposed $189 million support package by Gavi, the global vaccine organisation. The initiative targets key commercial barriers in African vaccine manufacturing, including limited demand visibility and weak investor confidence.
The initiative aims to create a more stable market while reducing Africa’s reliance on strained global vaccine supply chains during health emergencies. Africa currently imports 99% of its vaccines.
The procurement volumes proposed by Gavi may not, however, sustain multiple African vaccine manufacturers if imported vaccines remain cheaper and demand stays limited.
More details
Gavi announced the proposed AVMA+ measures on 15th May ahead of a board meeting scheduled for July, where the alliance will seek approval to expand its African Vaccine Manufacturing Accelerator (AVMA). Launched in 2024, AVMA supports African vaccine production through milestone-based incentives, while the proposed AVMA+ expansion adds direct procurement support and regulatory assistance to accelerate commercial market entry.
Since AVMA launched in 2024, African vaccine manufacturers have signed 13 technology transfer deals with global pharmaceutical companies, while commercial-scale facilities are being built in six countries. Gavi says the programme has also mobilised $3 billion in additional financing, with some African-made vaccines expected to reach the market by 2027.
The proposed procurement programme is a market signal to investors. Development finance institutions and pharmaceutical partners are more likely to finance manufacturing expansion when future demand and revenue become more predictable through long-term procurement commitments.
The proposal could also strengthen regional pharmaceutical manufacturing strategies beyond vaccines. Larger pooled procurement systems may give African manufacturers more stable demand, while countries already investing in pharmaceutical production could use guaranteed procurement to attract additional manufacturing partnerships and capital.
The expansion of manufacturing capacity may also push some African facilities beyond fill-finish operations into full biologics manufacturing. But long-term industry growth will still depend on whether African markets can sustain vaccine procurement without continued donor-backed purchasing support.
Questions remain over whether procurement volumes will be large enough to support multiple manufacturers across different vaccine categories. African producers will also face pricing competition from established manufacturers in India and China, especially if donor-backed procurement support reduces over time.
Our take
Gavi’s procurement initiative helps solve the immediate demand problem facing emerging vaccine manufacturers, but the market will ultimately need to sustain itself to ensure long-term vaccine access across the continent.
Manufacturers need enough long-term buyers to keep production lines running at commercially viable scale. African vaccine producers still operate in a market dominated by cheaper imports and procurement systems largely funded by international donors.