Deep Dive Overview
During the COVID-19 pandemic, the global vaccine market became highly monopolistic, making negotiating power and significant financial resources essential for acquiring limited doses. African states were unable to compete effectively on an individual basis. To ensure access to life-saving vaccines, countries across the continent collaborated to implement a pooled procurement mechanism dubbed the 'whole of Africa' approach, spearheaded by the African Union in collaboration with Africa CDC, Afreximbank, the African Development Bank, and UNECA.
Before the pandemic, Africa's vaccine landscape was characterised by heavy reliance on external, donor-driven funding. Out of 57 GAVI-eligible countries globally, 40 were in Africa, receiving 65% of GAVI's total disbursements. Africa's domestic vaccine manufacturing capacity was extremely low, accounting for less than 1% of its needs. The 'whole of Africa' approach established new entities including the AVAT procurement agency, the AVAT No-Fault Compensation Scheme, and critical financial tools from Afreximbank including a $2 billion Advanced Procurement Commitment and a 5-year Deferred Instalment Payment Plan.
Policy Recommendations
The pandemic proved that African governments are capable of investing in their own health needs. Going forward, it is critical that regional and national public health agencies secure more predictable sources of public funding to ensure the sustainable financing of vaccines
The collaboration between the African Union, Africa CDC, Afreximbank, and the African Development Bank was a cornerstone of the pandemic response. This partnership should be consolidated and leveraged to develop and implement innovative financing models for other vaccine-preventable diseases
Entities like the African Vaccine Acquisition Trust and other joint procurement mechanisms have shown immense promise for the pooling, management, and governance of both domestic and external aid. These mechanisms should be preserved and utilised for future vaccine procurement to maximise resource efficiency
High-level political engagement and committed leadership are vital to elevating health as a national priority. By prioritising health at the highest levels of government, nations can increase public funding and ultimately reduce their long-standing reliance on unpredictable external aid
Key Numbers
African countries pooled vaccine demand
Advanced Procurement Commitment by Afreximbank
GAVI-eligible African countries
target for local vaccine manufacturing by 2040
Deep Dive Summary
Examining how the African Union and partners established the AVAT pooled procurement mechanism and Afreximbank financing tools to secure COVID-19 vaccines autonomously, shifting the continent from donor-driven aid to self-financed health solutions.
Content Type
Case Study
Region
Pan-African
Author
Research Team
Read Time
10 min
Key Findings
The AVAT mechanism pooled vaccine demand across 55 countries, bypassing monopolistic vaccine queues during the COVID-19 pandemic.
Afreximbank backed the effort with a USD 2 billion Advanced Procurement Commitment and a 5-year Deferred Instalment Payment Plan.
The approach achieved autonomy and independence in sourcing and managing funds, reducing the influence of external aid commitments.
Bi-monthly coordination meetings between ministries of health and finance ensured effective and transparent resource mobilisation.
The strategy established a blueprint for increasing local vaccine manufacturing capacity to 60% by 2040.