The African Union has signed a historic agreement with Johnson & Johnson for 400 Million Doses of COVID-19 Vaccines. This historic COVID-19 vaccine procurement Agreement was signed on 28th March 2021. The procurement of the vaccine is through the African Vaccine Acquisition Trust (AVAT) set up in November 2020. This was under the African Union chairmanship of H.E President Cyril Ramaphosa, President of South Africa.
Mr. Strive Masiyiwa, African Union Special Envoy signed for AVAT. Also, Mr. Jaak Peeters, Johnson & Johnson Special Envoy for COVID-19 vaccine, signed on behalf of Johnson & Johnson.
“This Agreement is a significant milestone in protecting the health of all Africans. It is also a powerful demonstration of African unity and of what we can achieve through partnership between the state sector, the private sector and international institutions that puts people first”
President Ramaphosa.
Availability of the vaccines to African countries
Per the agreement, African countries will have access to 220 million doses of the Johnson & Johnson single-shot COVID-19 vaccine. However, there is the potential to order an additional 180 million doses. Meanwhile, the giant pharmaceutical manufacturing plant in South Africa operated by Aspen Pharma will produce most of the supplies.
The AU in a press release on March 29, 2021, noted that it will make available the vaccines to African countries over 18 months. Meanwhile, African countries will access the vaccines through the African Medical Supplies Platform (AMSP).
Meanwhile, H.E. Cyril Ramaphosa will later today tour the facilities of Aspen Pharma in Port Elizabeth. Also, the Johnson & Johnson Executives will join H.E. Ramaphosa to inspect preparations for the production of vaccines.
According to the press release, the production of vaccines at the facility will be a massive boost for jobs in South Africa. It added that the US$2 billion facility approved by the African Export-Import Bank (Afreximbank) facilitated the transaction. Moreover, Afreximbank acted as Financial and Transaction Advisers, Guarantors, Installment Payment Advisers, and Payment Agents.
Accessing the vaccines
Additionally, the AU stated that countries can purchase the vaccines either using cash, or a facility from Afreximbank. Most countries have already completed their pre-orders. The AU noted that the direct acquisition of vaccines through the AVATT initiative is part of the continental objective. Specifically, this objective is to achieve a minimum of 60% immunization of the African population to eliminate COVID-19.
The AU’s target is in line with the Europe and the United States’ targets. The international donor community has pledged to provide 27% through the COVAX Initiative. The AVATT and COVAX work very closely together.
“Afreximbank is proud to be associated with this historic and collective effort. … we are highly honored to have been given the opportunity by the African Union to facilitate this impactful transaction. … we look forward to beginning the deployment of the US$2 billion Vaccine Procurement facility approved by the Bank’s Board of Directors”.
Professor Benedict Oramah, President of Afreximbank
Moreover, Afreximbank is assisting the continent to rid itself of the pandemic and rebuild its economy. This financing, according to him, will support Intra-African Trade.
Other roles of the Afreximbank
He further stated that Afreximbank has already commenced engagement with our financial partners to secure the additional funding. He noted that this funding would support procurement if Africa decides to procure the additional 180 million doses.
“The Africa CDC recommended to the African Union that a minimum of 750 million Africans (60%) must be immunized if we are to contain the spread of COVID-19. This transaction enables Africa to meet almost 50% of that target. The key to this particular vaccine is that it is a single-shot vaccine which makes it easier to roll out quickly and effectively, thus saving lives”.
Dr. John Nkengasong, Director of the Africa Centres for Disease Control and Prevention (Africa CDC)
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