The World Bank and a trio of western government agencies will help South Africa produce as much as 500 million doses of the coronavirus vaccine between now and end of 2022 in a landmark partnership that puts the country ahead of its peers including Nigeria.
The partners announced a financing package for production of the Johnson & Johnson coronavirus vaccine on ground in South Africa as part of an effort to scale global production and meet demand for billions of doses.
The deal worth 600 million-euro or $712 million, announced Wednesday, will support South Africa’s Aspen Pharmacare Holdings Ltd. in producing 500 million doses of the shots through 2022 and helps South Africa to cement its position as the continent’s most advanced economy.
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Bloomberg reports that the funding will come from the International Finance Corp., which is affiliated with the World Bank, and three development agencies: the U.S. International Development Finance Corp., or DFC, Germany’s DEG and France’s Proparco SA. The U.S. portion is 100 million euros and comes from the DFC’s core budget.
The deal ensures that in the six months to end of 2021, Aspen will supply 30 million doses for use in South Africa.
The deal builds on an existing license between Aspen and J&J and includes no new intellectual property agreement, U.S. officials said, speaking on condition of anonymity to discuss the deal.
It’s aimed at building up production of vaccines outside a handful of countries as part of the overall effort to make billions of shots needed to quell the pandemic, they said.
J&J will provide the drug substance, which is the main ingredient, and Aspen — which is based in the South African port city of Durban — will conduct the fill-finish process, or the last stage in production, the officials said.
“I think this is hugely important,” said Gayle Smith, who is coordinating the U.S. State Department’s global vaccine strategy. “In the short term, it means greater availability of vaccine supply, produced in Africa for Africa. And I think in the medium-long term, it also means increased capacity for the continent to produce other types of vaccines.”
Aspen shares traded 1.5% higher at the close in Johannesburg.
