Biovac has secured more than US$175 million in international financing to expand vaccine production capacity, positioning itself at the forefront of Africa’s push for greater pharmaceutical self-sufficiency.
The South African firm plans to build a multi-vaccine manufacturing facility in Cape Town capable of producing up to 560 million doses annually — nearly four times its current output.
The financing package includes support from the International Finance Corporation, the private-sector arm of the World Bank Group, and the European Investment Bank, alongside grants backed by the European Union.
The IFC provided a loan to support ongoing vaccine production, alongside technical advisory services for the plant’s development, while the EIB channelled grant funding for feasibility studies and design work.
Biovac Chief Financial Officer Craig Mitchell said the project aims to move beyond basic “fill-and-finish” capabilities toward full end-to-end vaccine manufacturing on the continent.
“This collaboration epitomizes the type of support needed… to enable end-to-end manufacturing in Africa,” he said.
The company already supplies around 80 percent of South Africa’s routine childhood vaccines and has distributed more than 450 million doses across several African countries since 2003.
The investment comes amid growing urgency to expand local vaccine production. Africa currently consumes about 25 percent of global vaccine supply but produces less than 1%, according to data from the Africa Centres for Disease Control and Prevention.
The gap was exposed during the COVID-19 pandemic, when many African countries faced delays in accessing vaccines.
In response, the African Union has set a target to manufacture 60% of vaccines used on the continent locally by 2040, a goal that has attracted billions of dollars in pledges from international partners.
Biovac has also made progress on research and development. In November 2025, the company launched Phase 1 clinical trials of an oral cholera vaccine developed entirely in Africa, marking a significant milestone for the continent’s pharmaceutical sector.
The trial, conducted in collaboration with the University of the Witwatersrand and approved by the South African Health Products Regulatory Authority, is the first of its kind in more than 50 years to be fully developed on the continent.
If successful, the vaccine could proceed to large-scale Phase 3 trials and potentially reach approval for African use by 2028, with global clearance expected shortly thereafter.
The company has also expanded its research infrastructure, opening a new product development laboratory in Cape Town supported by funding from the Bill & Melinda Gates Foundation.
The facility includes advanced capabilities such as mRNA development, nanoparticle formulation and cell culture systems, allowing Biovac to work on multiple vaccine candidates simultaneously.
Despite the progress, the project still requires additional financing to complete the planned manufacturing plant.
The EIB said Biovac is working with domestic and international partners to close the remaining funding gap, while South African authorities are exploring further support through infrastructure investment programmes.
Analysts say the initiative represents one of Africa’s most ambitious efforts to build a sustainable vaccine manufacturing base, with success likely to depend on continued financing, regulatory support and strong demand from regional procurement programmes.
The next key milestone will be the release of Phase 1 trial data in 2026, which could determine the pace of further investment and development.
