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African Union Establishes Vaccine Manufacturing Facility: Challenges and Perspectives

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By Professor Maurice Okoli

The African Union, an organization uniting African states, has made a legitimate decision to establish a vaccine manufacturing facility inside Africa, despite the fierce initial resistance by the World Trade Organization (WTO). The Covid-19 pandemic, the critical period when widespread coronavirus endangered human lives, has rightly taught Africans lessons, especially the heightened discrimination in the supply and distribution of vaccines by Western and industrialized nations we referred to as the Global North.

Until today, Africans vividly remember their sentimental feelings characterized by sudden lockdown and social distancing. In the African context, most cultural group activities were suspended, and small traders and vendors shut behind doors without any revenue-earning employment. In short, the complex and unbearable adverse effects on small- and medium-scale businesses are still felt even as coronavirus has subsided, but not completely disappeared from society.

As part of stringent measures to contain future disease outbreaks and public health risks, for effective future responses, the Africa CDC is developing sustainable mechanisms such as local vaccine manufacturing facilities, strongly supported by African leaders and the African Union. The Africa CDC is mandated to strengthen Africa’s public health institutions’ capacity and capability and seek local and foreign partnerships to ensure a healthy Africa.

According to the Africa CDC report, about a quarter of Africa’s 1.4 billion population will be fully vaccinated against Covid-19 by the end of 2022. In the report, the target for Africa remains to vaccinate 70% of the population. That goal, however, was set by the World Health Organization (WHO) for the overall population. But due to delays in international vaccine deliveries, Africa largely lags behind the rest of the world.

Since Africa has no production facility, the vaccinations have been made mainly with Johnson & Johnson’s vaccine (42%), followed by Pfizer (22%), AstraZeneca (17%), China’s Sinopharm (15%) and Sinovac (7%). Currently, just more than 800 million doses of vaccines have been administered in Africa, or 80% of the total received.

Russia’s much-heralded vaccine diplomacy is neither vaccine diplomacy nor development assistance. Instead, it is a form of mercantilism, an effort by the state and its proxy to develop, market and sell Russian products abroad.

In February 2021, Russia offered the African Union 300 million doses of Sputnik V with financing packages for countries wanting to purchase them. Yet at $10 per dose for two doses of vaccine, Sputnik V was offered on terms making it significantly more expensive than the vaccine by AstraZeneca ($3 per dose), Pfizer ($6,75 per dose) and Johnson and Johnson ($10 for one dose-short vaccine).

Considering the cost implications, AU brokered with the French pharmacy brand Johnson and Johnson instead of Russian Sputnik V. Potential customers have also taken note of logistical challenges that plagued Russian officials’ vaccine efforts, combined with delivery delays, encouraged many desperate countries to look elsewhere during the crisis. Given these shortcomings, it is not all that surprising that Moscow’s strategic attempt to use vaccine diplomacy to showcase itself as a partner for Africa has not been very successful as envisioned.

At the Global Financing Summit held in Paris on 22-23 June 2023, South African President Cyril Ramaphosa emphasized the importance of vaccine manufacturing inside the continent; the further focus should be on developing actual vaccine R&D capacity, which must necessarily lead to health products. And this also requires substantial investment and a long-term commitment from external players and financial institutions. Notwithstanding those previous disappointments from external partners, at least African leaders have been rallying together to ensure that no effort is spared in facilitating and supporting the building of large-scale vaccine manufacturing capacity in the continent. The African Vaccine Manufacturing Summit held in April 2021 was an encouraging start, a collective effort to change the status quo.

Under the aegis of the African Union, the Africa CDC and the African Medicines Agency (AMA) are coordinating and cooperating to swiftly address health issues, including vaccine manufacturing and distribution in the continent. According to African Union’s report in mid-June 2023, the African Medicines Agency (AMA), a newly launched continental regulatory body for medical products, is concretely set to start its work, with its headquarters in Kigali, Rwanda. Rwanda was selected to host the agency during a 2022 AU Executive Council meeting in Lusaka, Zambia.

AMA is a specialized agency of the African Union (AU) intended to facilitate the harmonization of medical products regulation throughout the AU to improve access to quality, safe and productive medical products on the continent. Many AU member states, including Rwanda, ratified the treaty establishing the continental agency and deposited the legal instrument of ratification to the AU Commission. On June 10, for instance, Rwanda and the AU signed the host country agreement, an important step marking the start of the work by AMA.

The Health Minister Ruwanda Dr Sabin Nsanzimana emphasized the institution’s key role in building confidence in the quality of health products on the continent, promoting cooperation and mutual recognition in regulatory decisions and facilitating the movement of health products. The agency is tipped to enhance the capacity of state parties to regulate medical products and to improve Africa’s access to quality, safe, and productive medical products.

As we know, Rwanda’s government has already provided space for the agency’s operations. The following steps include getting leaders for the institution and establishing facilities like laboratories, et cetera. With much praise, AMA will contribute to medicine production on the continent and allow it to move across Africa.

In terms of bilateral relations, China and Africa will always be a community of a shared future. At least, its policies are strategically focused on addressing sustainable development. China has proved, over the years, in many aspects of dealing with Africa. Results are seen especially with all kinds of infrastructure built these years. And, of course, Chinese firms are actively engaging in joint vaccine production in Africa with local firms, helping countries, following their wishes, to realize localized vaccine production. According to reports, Chinese firms have started localized output in Egypt and signed cooperative agreements with Morocco and Algeria.

The headquarters building was completed after an agreement between the AU and China on the Africa CDC HQ’s building project in July 2020. it is now becoming one of the best-equipped centres for disease control in Africa, allowing the Africa CDC to play its role as the technical institution coordinating disease prevention, surveillance and power in the continent in partnership with the national public health institutes and ministries of Member States.

By combating Covid-19, China and Africa withstand severe challenges, helping each other and fighting side by side to defeat the pandemic through solidarity and cooperation. In essence, China is participating in the African Vaccine Manufacturing Partnership (AVMP) launched by the African Union in April 2021. This Continental Vaccine Manufacturing Vision is “to ensure that Africa has timely access to vaccines to protect public health security by establishing a sustainable vaccine development and manufacturing ecosystem in Africa.”

It is also a splendid testimony of China’s steadfast support for Africa. “Together, we have written a splendid chapter of mutual assistance amidst complex changes and set a shining example for building a new type of international relations,” Chinese President Xi Jinping said in one of his speeches, emphasizing the principles of China’s Africa policy as pursuing the greater good and shared interests.

While discussing this vital question, it is critical to strengthen the capacity and to prepare for future pandemics based on the sentiments, and latest first-hand experiences during the Covid-19 period. The fear and the uncertainties engulfed human lives, the overall impact on the economic performance across Africa. Worth to note here that African leaders have passionately called on G7 leaders to increase investments in research and innovation for vaccines, new drugs and diagnostics to help reach the goals the World Health Organization set.

More interesting – apparently, recent arguments among health experts have offered enough grounds for finding at least modest but sustainable health solutions. We can now praise the Africa CDC and AU for their joint support; that alone is one giant leap for establishing vaccine development and manufacturing inside Africa.

The key focus of this new agreement is forging new and strengthened partnerships to reach the millions who still lack access to vaccines and other essential health services. We have already acknowledged that the global Covid-19 pandemic and climate change have, to some degree, jeopardized the health, security and livelihoods of people across Africa.

Patrick Tippoo, Executive Director at the Africa Vaccine Manufacturing Initiative, argues that vaccine manufacturing is a complex, time-consuming exercise requiring considerable commitment and financial and technical resources. He further underscores that the capital investment required is significant and equally essential in a long-term future view for Africa’s health system and population. Therefore, African leaders need to rally together to ensure that no effort is spared in facilitating and supporting the building of large-scale vaccine manufacturing capacity on the continent.

The African Union could contribute in the following ways: (i) the mobilization of resources and creating enabling environments for help to be unlocked and discharged, as vaccine production is capital intensive and requires access to innovative funding streams over 10-20 years.

(ii) Accelerate efforts to create streamlined regulatory processes for speedier accreditation of vaccine manufacturing facilities and licensing products to ensure that vaccines can be available in the fastest time possible.

(iii) Increase access and accelerate the uptake of life-saving vaccines across the continent, including immunization, providing technical and learning assistance.

(iv) Invest in skills development programs specifically geared to creating a workforce skilled in vaccine development and manufacturing know-how.

In a similar argument, Tom Page wrote in his report, published in CNN news and newsletter, that Africa might need its own central medicines agency. The main reason is that when Africa needs medicines, the continent often looks abroad. That report, sourcing the World Economic Forum, said African nations consume about 25% of vaccines produced globally but import nearly 99% of their supply, according to the African Union Development Agency. For packaged medicines, only 36% of demand is produced locally, and just 3% is supplied by regional trade, according to the World Economic Forum.

The world acknowledges that there are people who can pay and there are people that can’t pay. It is not a sustainable model to deny people who can’t pay because they need money. Therefore, the biggest challenge is making supplies more affordable to the population. The essence of localizing production inside the continent is affordability, but there are still enormous challenges. Partly the reason why African governments should adopt a system approach and outline how to tackle health issues as fast as possible.

Today, Africa comprises 54 sovereign countries, most of which have borders that were drawn during the era of European colonialism. In the 21st century, improved stability and economic reforms have attracted a considerable great increase in foreign investment in many African nations. We hope that the Africa Continental Free Trade Area (AfCFTA) will make cross-border trade in the pharmaceutical space easier. And there is also a lot more on the policy front from the World Trade Organization.

If vaccine manufacturing takes off with the expected speed, distribution without cut-throat customs tariffs (taxes) and through borderless countries to reach different destinations, it will ultimately ensure better healthcare delivery. At long last, the vehicle for Africa’s economic transformation has visibly arrived in the single continental market – AfCFTA and it will be a tremendous premise for achieving the health aspects of the African Union’s Agenda 2063.

By Professor Maurice Okoli is a fellow at the Institute for African Studies and the Institute of World Economy and International Relations, Russian Academy of Sciences. He is also a fellow at the North-Eastern Federal University of Russia.

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The Future of Payments: Key Trends to Watch in 2025

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By Luke Kyohere

The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:

1. The rise of real-time payments

Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this. 

2. Cashless payments will increase

In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions. 

3. Digital currency will hit mainstream

In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain. 

The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability. 

4. Increased government oversight

As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.

5. Business leaders buy into AI technology

In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk. 

6. Continued AI Adoption in Payments

In payments, the proliferation of AI will continue to improve user experience and increase security.  To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent. 

When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.

7. Rise of Super Apps

To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills. 

8. Business strategy shift

Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble. 

As the payments space evolves,  businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.

Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq

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Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections

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In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.

In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.

“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”

The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.

Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.

The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”

The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.

As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.

In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.

“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.

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The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms

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By Kenechukwu Aguolu

The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.

One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.

A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.

In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.

The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.

The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.

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