South Africa signs vaccine development and production financing agreement with Germany's KfW Development Bank
13 September 2023
The Minister of Higher Education, Science and Innovation, Dr Blade Nzimande, is pleased to announce the conclusion of a financing agreement between the Department of Science and Innovation (DSI) and the Federal Republic of Germany's KfW Development Bank.
Under the agreement the German government, through KfW, will provide South Africa with €20 million for vaccine production over a period of five years.
The grant is exclusively for financing equipment for the development, production and certification of active pharmaceutical ingredients for vaccine production in South Africa.
It will be used, among other things, in support of the mRNA technology transfer hub that South Africa is hosting for the World Health Organization (WHO) to build vaccine manufacturing capacity in low and middle-income countries, although it will go beyond this in providing support.
The objective of the technology transfer hub is to establish or enhance sustainable mRNA vaccine manufacturing capacity in regions with no or limited capacity, introduce new technologies in low and middle-income countries, promote regional research and development, strengthen regional biomanufacturing know-how and workforce development, and develop regulatory capabilities to support and accelerate regional approval and distribution of mRNA vaccines.
In response to the WHO decision, made during the Covid-19 pandemic, the German government indicated its commitment to supporting vaccine production in South Africa.
The agreement, signed on 25 July 2023, makes the DSI the recipient of the KfW financial support on behalf of the South African government, and recognises the DSI and its Director-General, Dr Phil Mjwara, as the custodian and leader of the South African vaccine manufacturing strategy.
The Minister said that the German decision to work with the DSI could be seen as a vote of confidence in the DSI leadership's management of international funds.
"The German investment will build on the strategic investments by DSI and other partners, and KfW has agreed to work in alignment with the South African vaccine manufacturing strategy," said Minister Nzimande.
The Minister added that the funding could support catalytic initiatives under this strategy.
The South African Medical Research Council (SAMRC) will be the project executing agency and will report to the DSI through a steering committee.
“We are delighted to be part of this program which will provide critical support to establishing a vaccine manufacturing industry in Sub-Saharan Africa. In addition to complementing the activities of the mRNA hub program this partnership will seek to provide critical support in filing gaps in the pre-clinical research domain,” said Professor Glenda Gray, President and CEO of the South African Medical Research Council.
KfW will appoint an implementation consultant to support the KfW and to assist the SAMRC. The duties of the consultant will be to provide sector-specific support for project planning, management, monitoring and evaluation, among other things.
Ambassador Andreas Peschke, from the German Embassy in Pretoria, reiterated the important role played by South Africa in strengthening continental vaccine manufacturing capacities, indicating that “the country is at the very forefront of continental efforts for local pharmaceutical and vaccine research and production. Its world-class research institutions and a solid industry meet the prerequisites for independent vaccine research, development, and production”. Furthermore, he highlighted the significance of the German - South African relationship in this context.
Issued by Department of Science and Innovation, 14 September 2023
