African Export-Import Bank (Afreximbank) (www.Afreximbank.com) and Kenya-based Med Aditus Pharmaceutical Kenya Limited (Med Aditus) have signed a project preparation facility heads of terms agreement at the margins of the fourth edition of the African Sub-Sovereign Governments Network (AfSNET) Conference in Kisumu City, Kenya. The project preparation facility will be deployed to part-finance the preparation of feasibility studies towards the development of Med Aditus’ pharmaceutical manufacturing plant.
Estimated to cost US$ 40 million, the plant will be situated on 10 acres of land in Kibos, Kisumu County, Kenya, and will boast an annual production capacity of two-billion tablets/capsules. The specialist plant will focus on the production of tablets and capsules to treat non-communicable diseases including cardiovascular cases, diabetes and cancer, as well as infectious diseases from HIV and malaria to tuberculosis, not to mention production of drugs targeting neglected tropical diseases.
Designed as a state-of-the-art pharmaceutical manufacturing plant that will comply with Current Good Manufacturing Practice (cGMP), the plant will deploy continuous manufacturing technology integrated with blockchain-powered quality management system and pursue an innovative and cutting-edge approach to producing pharmaceutical products, marking a first-of-its-kind in Africa.
The establishment of the pharmaceutical manufacturing facility is expected to strengthen and boost local production of essential medicines, improving access to more affordable and quality medicines across Kenya and neighbouring countries. This will help enhance resilience to supply chain disruptions and also reduce the proliferation of counterfeit and low-quality medicines.
Afreximbank’s intervention is part of its ‘Africa Health Security Investment Plan” to support the health product manufacturing ambition of the continent. This initiative is pivotal in addressing Africa’s health investment challenges, promoting economic development, and strengthening health security across the continent.
His Excellency Professor Peter Anyang’ Nyong’o, Governor of the County of Kisumu and Mrs. Kanayo Awani, Executive Vice President Intra African Trade and Export Development witnessed the signing of the agreement during the 4th Africa Sub – Sovereign Network (AfSNET) conference in Kisumu. Mr. Zitto Alfayo, Head of Project Preparation at Afreximbank signed the agreement on behalf of the Bank while Dr. Dhiren Thakker, Chief Executive Officer of Med Aditus signed on behalf of his company.
Commenting on the transaction, Mrs. Awani, welcomed the establishment of the Med Aditus Pharmaceuticals project and said:
“The partnership with Med Aditus demonstrates Afreximbank’s close cooperation with public and private partners to accelerate development of innovative solutions for combating deadly diseases and scaling up healthcare financing and delivery. Afreximbank is committed to enhancing partnerships with local and international stakeholders to boost investment and support innovative technologies. The project’s strategic location in Kisumu, at the heart of the Great Lakes Region gives it access to markets in Kenya, Uganda, Tanzania, DR Congo, Rwanda, Burundi and South Sudan thereby promoting Intra-African trade within the AfCFTA context.”
“I am particularly thrilled by the critical role the County Government of Kisumu played in support of this project by availing the project site and facilitating the partnership with the Great Lakes University of Kisumu to support local technical skills and capacities. This once again highlights the transformative roles sub-sovereign governments play as engines for broad-based economic development,” she added.
Dr. Thakker, expressed enthusiasm about the agreement stating: “Med Aditus Group is excited to partner with Afreximbank to establish a first-of-its-kind pharmaceutical manufacturing enterprise in Kisumu, Kenya. , The plant will facilitate access to high-quality affordable medicines to the citizens of Kenya, East Africa, and the continent at large. Med Aditus Group’s commitment is to promote rapid growth of the local pharmaceutical manufacturing that will enhance healthcare outcomes of the people and stimulate economic development throughout the region.”
“By leveraging continuous modular manufacturing technology alongside blockchain integration in manufacturing, distribution and supply chain logistics, and ultimately patient engagement, deployed for the first time in Africa, the continent will leapfrog into a leading producer and supplier of high-quality affordable medicines for its people and the global community,” he added.
Med Aditus Pharmaceuticals Kenya Limited was established as a special purpose vehicle to design, develop, finance, operate and maintain the pharmaceutical plant on land secured through a concession agreement with the County Government of Kisumu. The estimated project cost of US$ 40 million includes US$ 26 million of debt financing and US$ 14 million of equity financing.
The AfSNET Conference, organised by Afreximbank, in collaboration with the County Government of Kisumu and the United Cities and Local Governments of Africa from 25 to 27 November, sought to strengthen the role of Sub-Sovereign governments in driving intra-African trade and investment and the successful implementation of the African Continental Free Trade Agreement. The theme of the conference was, ‘Leveraging the AfCFTA for Sustainable Trade and Investment: A Development Pathway for African Sub-Sovereigns.’ The conference was officially opened by President William Ruto of Kenya in the presence of Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank and was attended by over 900 delegates from national and Sub-Sovereign governments across Africa.
Distributed by APO Group on behalf of Afreximbank.
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Email: press@afreximbank.com
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About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.Afreximbank.com
About Med Aditus:
Med Aditus Pharmaceuticals Kenya Ltd. is a pioneering private limited company established to revolutionize pharmaceutical manufacturing in Kenya and the surrounding region. Leveraging innovative technologies such as portable continuous modular manufacturing and blockchain-powered quality management systems, the company is committed to producing high-quality, affordable medicines locally. Located in Kisumu, a strategic hub in the Great Lakes Region, Med Aditus Pharmaceuticals Kenya collaborates with local organizations and academic institutions to enhance workforce development and expand access to essential therapies. Its transformative approach focuses on addressing the region’s critical health challenges.