AfDB Approves Establishment Of African Pharmaceutical Technology Foundation

(AFRICAN EXAMINER) – The African Development Bank (AfDB) has approved the establishment of the African Pharmaceutical Technology Foundation, aimed at transforming the continent’s pharmaceutical industry.

It is new groundbreaking institution that will significantly enhance Africa’s access to the technologies that underpin the manufacture of medicines, vaccines, and other pharmaceutical products.

The Foundation will strengthen bilateral initiatives for local manufacture of pharmaceuticals, such as the recent partnership between BioNTech and Senegal’s Pasteur Institute to produce vaccines against COVID-19.

African pharmaceutical companies do not have the scouting and negotiation capacity, and bandwidth to engage with global pharmaceutical companies. They have been marginalized and left behind in complex global pharmaceutical innovations.

Recently, 35 companies signed a license with America’s Merck to produce Nirmatrelvir, a COVID-19 drug. None of them was African.

Worse still, no institution exists on the ground in Africa to support the practical implementation of Trade Related Intellectual Property Rights (TRIPs) on non-exclusive or exclusive licensing of proprietary technologies, know-how and processes.

The proposed Foundation will fill this important and glaring gap. When fully established, it will be staffed with world-class experts on pharmaceutical innovation and development, intellectual property rights, and health policy; acting as a transparent intermediator advancing and brokering the interests of the African pharmaceutical sector with global and other Southern pharmaceutical companies to share IP-protected technologies, know-how and patented processes.

It will also prioritize technologies, products and processes focused primarily on diseases that are widely prevalent in Africa, including current and future pandemics. It will also build human and professional skills, the research and development ecosystem, and support upgrading of manufacturing plant capacities and regulatory quality to meet World Health Organization standards.

While it is being established under the auspices of the AfDB, the Foundation will operate independently and raise funds from various stakeholders including governments, development finance institutions, philanthropic organizations among others.

Notably, it will boost the Bank’s commitment to spend at least $3 billion over the next 10 years to support the pharmaceutical and vaccine manufacturing sector under its Vision 2030 Pharmaceutical Action Plan. The Foundation’s areas of work will also be an asset to all other current investments into pharmaceutical production in Africa.

Rwanda will host the Foundation, as a common benefits entity, it will have its own governance and operational structures. Moreover, the it will promote and broker alliances between foreign and African pharmaceutical companies.

In addition, the Foundation will strengthen local pharmaceutical companies to engage in local production initiatives with systematic technology learning and technology upgrading at the plant level.

It will work with African governments, research and development centers of excellence to strengthen the regional pharmaceutical and vaccine innovation ecosystem for Africa and build skills of the kind needed for the pharmaceutical sector to flourish.

The Foundation also seeks to promote closer coordination of the various ongoing medicines and vaccines’ manufacturing initiatives at the regional level to increase collaborative linkages, leverage synergies and partnerships in a pan-African context.

It will work closely with the African Union Commission, European Union Commission, the World Health Organization (WHO), the Medicines Patent Pool, the World Trade Organization (WTO), philanthropic organizations, bilateral and multilateral agencies and institutions, and will foster collaboration between the public and private sectors in developed countries and developing countries.

The decision is a major boost to the health prospects of a continent that has been battered for decades by the burden of several diseases and pandemics such as Covid19, but with very limited capacity to produce its own medicines and vaccines. Africa imports more than 70 percent of all the medicines it needs, gulping $14 billion per year.

Global efforts to rapidly expand the manufacturing of essential pharmaceutical products including vaccines in developing countries, particularly in Africa, to assure greater access, have been hampered by intellectual property rights protection and patents on technologies, know-how, manufacturing processes and trade secrets.

AfDB’s Group President, Dr. Akinwumi Adesina said: “This is a great development for Africa. Africa must have a health defense system, which must include three major areas: revamping Africa’s pharmaceutical industry, building Africa’s vaccine manufacturing capacity, and building Africa’s quality healthcare infrastructure.”

During the African Union (AU) Summit in Addis Ababa in February 2022, the continent’s leaders called on the African Development Bank to facilitate the establishment of the African Pharmaceutical Technology Foundation.

Dr. Adesina, who presented the case for the institution to the AU noted that Africa can no longer outsource the healthcare security of its 1.3 billion citizens to the benevolence of others, adding that with this bold initiative, the Bank has made good on that commitment.

“Even with the decision of the TRIPS Waiver at the WTO, millions are dying -and will most likely continue to die – from lack of vaccines and effective protection. The Foundation provides a practical solution and will help to tilt the access to proprietary technologies, knowledge, know-how and processes in favor of Africa”, he added.

Interestingly, the leadership of the WTO and the WHO have respectively welcomed and lauded the AfBB’s decision to establish the Foundation.

The Director-General of the WTO, Dr. Ngozi Okonjo-Iweala, said the Foundation is innovative thinking and action by the AfDB. “It provides part of the infrastructure needed to assure an emergent pharmaceutical industry in Africa”, she stressed.

Similarly, the Director-General of the WHO, Dr. Tedros Ghebreyesus described the establishing the Foundation, by the Bank as a game changer on accelerating the access of African pharmaceutical companies to IP-protected technologies and know-how in Africa.