South Africa’s Biovac lands $89 million to expand Africa vaccine production capacity

Biovac, a South African bio-pharmaceutical company, is accelerating Africa’s bid for vaccine self-sufficiency after securing $89 million in fresh funding to build the continent’s first multi-vaccine manufacturing hub, a milestone for regional health security.

The investment, led by the European Investment Bank, alongside the European Commission and the International Finance Corporation, forms part of a blended finance structure designed to unlock additional capital. The package includes quasi-equity financing and is expected to catalyze at least $20 million in senior loans.

Backed by the EU’s Global Gateway strategy, the funding underscores growing alignment between European capital and Africa’s healthcare ambitions.

Building Africa’s first multi-vaccine facility

The Cape Town-based company plans to complete the greenfield facility by 2028. Initial production will focus on oral cholera vaccines, with future expansion into polio, pneumonia and meningitis shots.

Once operational, the site could help close up to 40% of the global cholera vaccine supply gap, positioning Africa as a critical supplier to international procurement agencies such as UNICEF and Gavi.

The project directly supports the African Union’s Vision 2040 target to manufacture 60% of vaccines locally, while aligning with the African Vaccine Manufacturing Accelerator (AVMA).

Jobs, technology and industrial spillovers

Biovac Chief Executive Morena Makhoana said the investment will fast-track local production capacity and deepen Africa’s pharmaceutical capabilities.

The expansion is expected to create more than 340 skilled jobs and roughly 7,000 indirect roles, while driving technology transfer and workforce development. About half of the manufacturing equipment will be sourced from Europe, reinforcing industrial ties between the two regions.

A strategic bet on health sovereignty

Founded in 2003 as a public-private partnership, Biovac already supplies roughly 80% of South Africa’s pediatric vaccines and distributes over 15 million doses annually through its cold-chain network.

Under the leadership of CEO,  Morena Makhoana the company has invested more than R800 million ($48.7 million) in infrastructure and skills development to date, contributing significantly to the domestic economy.

With the new facility, Biovac is moving beyond fill-and-finish operations toward full end-to-end vaccine production, including mRNA capabilities, marking a shift in Africa’s role in the global pharmaceutical value chain.