Posted on :Wednesday , 4th December 2024

African Export-Import Bank (Afreximbank) and Kenya-based Med Aditus Pharmaceutical Kenya Limited (Med Aditus) have signed a heads-of-terms agreement for a project preparation facility on the sidelines of the fourth African Sub-Sovereign Governments Network (AfSNET) Conference in Kisumu, Kenya. The project preparation facility will be used to help fund feasibility studies for the establishment of Med Aditus' pharmaceutical manufacturing plant.

The plant, estimated to cost $40 million, will be built on 10 acres of land in Kibos, Kisumu County, Kenya, with an annual manufacturing capacity of two billion tablets/capsules. The specialised plant will manufacture tablets and capsules to treat noncommunicable diseases such as cardiovascular disease, diabetes and cancer, as well as infectious diseases such as malaria, HIV and tuberculosis, as well as drugs for neglected tropical diseases.

Designed as a cutting-edge pharmaceutical manufacturing plant that will comply with Current Good Manufacturing Practice (cGMP), the plant will use continuous manufacturing technology integrated with a blockchain-powered quality management system and pursue an innovative and cutting-edge approach to producing pharmaceutical products, making it a first-of-its-kind in Africa.

The creation of the pharmaceutical manufacturing facility is planned to enhance and boost local production of important medications, hence boosting access to more inexpensive and high-quality pharmaceuticals in Kenya and surrounding nations. This will improve resilience to supply chain disruptions while also reducing the spread of fraudulent and low-quality medications.

Afreximbank's involvement is part of its "Africa Health Security Investment Plan," which aims to assist the continent's ambitions in health product manufacturing. This effort is critical for tackling Africa's health investment concerns, fostering economic development and increasing health security throughout the continent.

His Excellency During the 4th Africa Sub-Sovereign Network (AfSNET) conference in Kisumu, Professor Peter Anyang' Nyong'o, Governor of the County of Kisumu and Mrs. Kanayo Awani, Executive Vice President Intra African Trade and Export Development, observed the agreement being signed. Mr Zitto Alfayo, Head of Project Preparation at Afreximbank, signed the agreement on behalf of the bank and Dr. Dhiren Thakker, CEO of Med Aditus, signed on behalf of his company.

Mrs. Awani commented on the transaction, welcoming the launch of the Med Aditus Pharmaceuticals enterprise, saying:

"The partnership with Med Aditus exemplifies Afreximbank's close collaboration with public and private partners to accelerate the development of innovative solutions for combating fatal illnesses and scaling up healthcare financing and delivery. Afreximbank is committed to strengthening ties with both local and international players in order to increase investment and encourage innovative technologies. The project's strategic location in Kisumu, in the heart of the Great Lakes Region, provides access to markets in Kenya, Uganda, Tanzania, DR Congo, Rwanda, Burundi and South Sudan, increasing intra-African trade within the AfCFTA environment."

"I am also pleased with the key role that the County Government of Kisumu played in supporting this project by providing the project location and encouraging the collaboration with the Great Lakes University of Kisumu to enhance local technical skills and competencies. This once again demonstrates the revolutionary role that sub-sovereign governments play as engines of broad-based economic development," she stated.

Dr. Thakker highlighted his enthusiasm for the partnership, saying: "Med Aditus Group is excited to work with Afreximbank to develop a first-of-its-kind pharmaceutical manufacturing firm in Kisumu, Kenya. The plant will make high-quality, affordable pharmaceuticals more accessible to Kenyans, East Africans, and the rest of the continent. Med Aditus Group is committed to promoting rapid growth of local pharmaceutical production, which will improve people's healthcare outcomes and drive 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," the official stated. 

Med Aditus Pharmaceuticals Kenya Limited was formed as a special purpose corporation to design, develop, finance, operate and maintain the pharmaceutical plant on land acquired through a concession agreement with the County Government of Kisumu. The anticipated project cost is $40 million, which includes $26 million in loan funding and $14 million in equity financing.