Africa is increasingly becoming a producer, innovator, and strategic partner in global healthcare manufacturing, says Trade, Industry and Competition Minister Parks Tau.
“The expansion of the Biovac end-to-end vaccine manufacturing facility sends a powerful signal to the world: that Africa is increasingly becoming a producer, innovator, and strategic partner in global healthcare manufacturing,” the Minister said on Monday.
The Minister was speaking at the soil-turning ceremony at the Biovac Pharma facility expansion ceremony in Cape Town. Biovac is a South African-based biopharmaceutical company established in 2003, in partnership with government, to build local vaccine manufacturing capability.
According to Tau, the expansion reflects growing confidence in South Africa’s industrial base, innovative capabilities, and long-term economic potential.
“One of the lessons from COVID-19 health and economic pandemic experience is that Africa must build stronger regional pharmaceutical, medical device, In-Device Validation, diagnostic and vaccine manufacturing capabilities to ensure greater health security, resilience, and self-reliance. Despite our challenges and high import dependence, South Africa has both the capability and the responsibility to play a leading role in this continental effort,” said Tau.
Monday’s visit formed part of the Department of Trade, Industry and Competition’s 2026/2027 Pre-Budget Vote stakeholder engagement programme and ongoing efforts to highlight the impact of government supported industrialisation initiatives, localisation efforts, and strategic investments within priority sectors of the economy.
Furthermore, Tau said the Biovac expansion project directly advances the broader industrialisation agenda by deepening local pharmaceutical manufacturing, expanding advanced production capabilities, supporting technology transfer, strengthening innovation ecosystems and creating highly skilled employment opportunities.
“Importantly, this investment aligns strongly with the African Union’s (AU) aspirations for health sovereignty, the Partnerships for African Vaccine Manufacturing initiative, and the African Continental Free Trade Area’s (AfCFTA) objective of building regional value chains and strategic industrial capability across the continent. At its core, this project demonstrates the critical link between industrial development and public health security,” the Minister said.
Tau underscored government’s commitment to creating an enabling environment for advanced manufacturing industries through localisation measures, investment support, skills development, innovation incentives, and stronger public-private collaboration.
“We welcome the strong partnership demonstrated by the European Investment Bank, the International Finance Corporation, Proparco, Industrial Development Corporation and the European Commission. We also acknowledge the impact of GAVI, the Vaccine Alliance, AVMA (African Vaccine Manufacturing Accelerator) – a $1.2billion 10-year fund to support African vaccine manufacturers on their journey to sustainability,” he explained.
Dr Morena Makhoana, Chief Executive Officer at Biovac, said the presence of government at the sod turning ceremony is important and symbolic.
“Whilst Biovac works and is being supported by global partners either in developing new products, technology transfers, and innovative financing, there is nothing that can replace home-grown support. This moment that we celebrate with the South African government is truly important to demonstrate that the local ecosystem in South Africa led by our government is equally and truly supportive of our quest to be an end- to- end vaccine manufacturer of equal standing to our international peers, said Dr Makhoana.
The Chairperson of the European Parliament’s Foreign Affairs Committee, David McAllister said: “I am glad to be in Cape Town today to mark Team Europe’s contribution to Biovac. Our €95 million contribution represents the largest financing package in Biovac’s history and demonstrates concretely the impact of the European Union’s (EU) Global Gateway in Africa’s health security, as well as in building resilience and reducing dependencies.”
McAllister said that beyond financing, it is about transformational impact on skilled jobs, industrial value chains, local beneficiation and EU–Africa private sector partnerships, fully aligned with South Africa’s local manufacturing ambitions.
“These developments mark a promising new phase for Biovac and for Africa’s broader vaccine manufacturing agenda,” said McAllister.
The Cape Town facility will produce vaccines for cholera, polio, pneumonia, and meningitis, with a manufacturing capacity of 30 to 40 million doses annually. It is expected to be completed by 2028 and will create over 340 skilled jobs and 7,000 indirect jobs.
The investment aligns with the African Union's Vision 2040 goal of achieving 60% local vaccine production and supports several United Nations Sustainable Development Goals. It is a flagship project under the EU-South Africa Comprehensive Trade and Investment Partnership and an expression of the dtic's 3D Industrial Policy. - SAnews.gov.za
