Assembly Decision {Assembly/AU/Dec.55(IV)} taken during the Abuja Summit in January 2005 requested the AU Commission to develop a Pharmaceutical Manufacturing Plan for Africa (PMPA) within the framework of the then NEPAD.

 In 2012 the 19th African Union Assembly Decision {Assembly AU/Dec.442(XIX)} on AU endorsed the PMPA Business plan which provides a package of technical and policy solutions to the challenges hampering Africa’s progress to achieve the PMPA’s objective of creating a viable pharmaceutical industry that can provide in a sustainable manner the much needed essential medical products to improve public health outcomes while creating jobs, boosting research and development across the pharmaceutical manufacturing value chain and enhancing the industrial base of the continent.

The PMPA Business plan, amongst other pillars, listed Access to Affordable Finance and Time Limited incentives as a critical solution that must be provided to facilitate attainment of the PMPA aims of increased access to affordable quality medicines and sustained supply of essential medicines can be achieved. Lack of affordable finance limits the industry from making requisite investment in upgrading to international GMP standards limiting market access and hindering economies of scale and scope.

Traditional local bank debt financing is the prevalent source of financing. While this is easy to access, it is costly (average of 15-30%, dependent on country for locally denominated loans) and mostly meets short terms needs leaving a gap in the much-needed affordable growth capital.

Pharmaceutical self-sustenance in Africa supported by access to affordable finance becomes more critical in the wake of the Covid19 pandemic making it urgently necessary for Africa, more than ever, to look inward for solutions to curb the negative effect of the pandemic and the dependence on aid from other continents.

It is against this background that AUDA-NEPAD is organising a series of webinars to address which was launched on 13th April 2020 aimed at galvanising African industrial capacity to produce the much-needed pharmaceuticals and medical supplies to respond to Covid19 and future pandemics.