Understanding the economics of COVID-19 vaccination in Africa

Africa's existing vaccine market is estimated to be worth $1.3 billion USD and is projected to reach $2.35 billion USD by 2030. However, the continent currently produces less than 1% of its required vaccines, relying heavily on imports. In a recent interview with CNBC Africa, JP Fabri, Founding Partner at the CID Consultancy, shed light on the dynamics and challenges of vaccine manufacturing in Africa. He highlighted the complexity of the vaccine market, with its dependence on international players and lack of domestic manufacturing capacity. Fabri emphasized the need for Africa to develop its own vaccine manufacturing capabilities to reduce economic and human costs. He also discussed the barriers posed by procurement processes managed by UN bodies, hindering the commitment to buy locally manufactured vaccines. Fabri suggested the establishment of regional manufacturing hubs in Africa and emphasized the importance of a comprehensive ecosystem encompassing talent development, investment attractiveness, and procurement strategies. Despite past doubts, Fabri highlighted advancements in vaccine manufacturing technology and renewed support from international entities, such as the European Union's commitment of 1 billion euros to support African states in vaccine manufacturing. Overall, Fabri stressed the need for a unified vision and integrated approach to vaccine manufacturing in Africa, aligning it with broader economic, social, and health policies. The conversation underscored the potential for growth and self-sufficiency in Africa's vaccine market, if the continent can overcome existing challenges and seize opportunities for local manufacturing.