The African Development Bank (AfDB) has approved a loan of up to $15 million (equivalent to approximately R250 million) for the South African vaccine manufacturer Biovac. The purpose of this funding is to support the construction of a new multi-purpose production complex in Cape Town.
This move aims to strengthen Africa's capacity in vaccine production and reduce the continent's dependence on imports. The new facility, planned for completion by 2028, will initially focus on producing oral cholera vaccines. Production will later be expanded to include inactivated polio vaccines (IPV), pneumococcal conjugate vaccines (PCV), and meningitis vaccines (MenX).
AfDB joins a consortium of development institutions supporting this expansion. The International Finance Corporation (IFC) leads the financial syndicate. It also includes long-term quasi-equity financing from the Human Development Accelerator (HDX) program, which is supported by the European Union and implemented by the European Investment Bank in collaboration with the Gates Foundation. Additional grant funding and technical assistance from global health partners will help facilitate technology transfer for expanding Biovac's vaccine portfolio.
The funding, announced on Friday, is part of a broader expansion program that will increase Biovac's annual production capacity to 500 million vaccine doses. This positions the company as the first full-cycle oral cholera vaccine producer in Africa and the first local manufacturer of inactivated polio vaccines in South Africa. The project also supports South Africa's ambition to become a regional pharmaceutical manufacturing hub, creating approximately 340 jobs. Of these, about 43% are designated for women, and 30% for youth.
This project comes as Africa continues to import over 99% of the vaccines used on the continent, despite bearing a disproportionately high burden of vaccine-preventable diseases. The African Union has set a goal to localize 60% of Africa's vaccine production by 2040.
Solomon Quaynor, Vice President of AfDB for Private Sector, Infrastructure and Industrialization, noted that this investment goes beyond simply increasing production capacity. He stated that it is aimed at building 'Africa's health,' strengthening regional value chains, and fostering industrial capabilities that will allow the continent to respond more effectively to future health crises. Quaynor emphasized that supporting Africa's first oral cholera vaccine production base and its first local production of inactivated polio vaccines will help transform Africa from an importer of vaccines to a producer of critical medical products.
Biovac CEO, Morena Makhoana, called the agreement a significant milestone for the continent's health sector. He thanked AfDB for partnering in this major project, noting that the institution sees Biovac as an opportunity to fundamentally change the continent's approach to its own health security. Makhoana added that the project will shift the perception from predominantly imported vaccines to predominantly exported ones, which is part of a continuous change in this reality and reflects the practical realization of Africa's health.
Biovac was founded in 2003 in partnership with the South African government to develop local vaccine manufacturing capabilities. Based in Cape Town, the company currently produces and supplies routine pediatric vaccines and has already supplied over 450 million vaccine doses across South Africa, including COVID-19 vaccines. The expansion will also enhance skills development in South Africa's biotechnology sector, as Biovac plans to expand training programs in vaccine production, quality control, and regulatory science through collaborations with local universities and regional training centers.
Kennedy Mbekeani, Director of AfDB for South Africa and Country Manager in South Africa, noted that the investments target vaccines with the greatest public health impact. He stressed that the project allows one of Africa's most experienced manufacturers to scale up production where the need is greatest: vaccines protecting children against cholera, polio, pneumonia, and meningitis. Furthermore, the project aligns with the growing ecosystem of vaccine financing on the continent, including the $1.2 billion Gavi's African Vaccine Manufacturing Accelerator (AVMA) initiative, which stimulates African vaccine production through phased payments linked to World Health Organization prequalification and additional support for vaccines supplied through UNICEF procurement programs.
The African Development Bank Group (AfDB) has approved a loan of $400 million (equivalent to approximately 6.5 billion Rand) for South Africa. These funds are intended to support the Municipal Utility Reform Programme in Mpumalanga.
This initiative aims to improve the reliability, quality, and financial sustainability of water supply and electricity services in four municipalities within the province. The programme is part of South Africa's efforts to ensure a just energy transition, assisting municipalities affected by the country's departure from coal while strengthening the provision of vital municipal services.
The programme's focus will be on reducing energy and water losses, improving municipal revenue collection, restoring critical infrastructure, strengthening utility management, and stimulating greater private sector participation through performance-based contracts. According to the AfDB, the programme is expected to lead to reduced greenhouse gas emissions, job creation, improved municipal governance, and enhanced climate resilience in coal-dependent communities.
The programme is designed to serve as a pilot model that can be scaled up to other South African municipalities and applied in other countries facing similar challenges. Kevin Karuuki, AfDB Vice President for Energy, Climate and Green Growth, emphasized that strong municipalities are essential for South Africa's long-term development. He stated that strengthening the financial sustainability of utilities will improve power delivery, build more resilient local institutions, and create a replicable reform model.
The bank's financing is secured by a guarantee from the UK Foreign, Commonwealth & Development Office (FCDO) under the Just Energy Transition Partnership guarantee mechanism. The FCDO is also providing technical assistance for project preparation. Lisa Widun, the acting British High Commissioner in South Africa, noted that the UK supports South Africa's efforts to improve municipal service delivery through innovative financing. She stated that MURP represents a practical partnership demonstrating how innovative financing can help municipalities provide more reliable services and contribute to economic growth within South Africa's just energy transition.
The programme will be implemented by the Development Bank of Southern Africa (DBSA) through a dedicated programme management office under the National Treasury and the Department of Cooperative Governance. The participating municipalities are Emalahleni, Lekwa, Gouvan Mbeki, and Mbombela, which serve approximately 1.2 million people. Furthermore, the programme will support the Inkomati-Usutu Catchment Management Agency in strengthening integrated water resource management from 2026 to 2031.
Ogalaletseng Gaarekwe, Deputy Director-General of the National Treasury for Intergovernmental Relations, noted that the programme will help municipalities enhance the resilience of essential services. He considers the Municipal Utility Reform Programme in Mpumalanga an important step towards stabilizing municipal services. According to him, the programme will test a support model that strengthens operations and maintenance, planning, infrastructure, and municipal capacity, thereby ensuring more reliable and sustainable water and energy services in line with the government's just energy transition goals.
