Afreximbank Partners with Med Aditus to Establish Pharmaceutical Plant in Kenya

The African Export-Import Bank (Afreximbank) and Med Aditus Pharmaceutical Kenya Limited have entered into a landmark agreement to part-finance feasibility studies for the development of a state-of-the-art pharmaceutical manufacturing plant in Kisumu County, Kenya. The announcement was made during the 4th African Sub-Sovereign Governments Network (AfSNET) Conference, held in Kisumu City from November 25 to 27, 2024.

Transformative Healthcare Investment

The proposed $40 million plant, to be located on 10 acres in Kibos, Kisumu, will produce two billion tablets and capsules annually. The facility will focus on manufacturing treatments for non-communicable diseases like cardiovascular ailments, diabetes, and cancer, as well as infectious diseases such as HIV, malaria, tuberculosis, and neglected tropical diseases.

This initiative represents the first deployment of continuous modular manufacturing technology integrated with blockchain-powered quality management systems in Africa. These cutting-edge solutions aim to ensure efficient production, secure supply chains, and enhanced drug quality management.

Boosting Regional Healthcare and Economy

The plant is expected to enhance local access to affordable, high-quality medicines while reducing reliance on imports, strengthening supply chain resilience, and curbing counterfeit medicines in the region. It will also create jobs, improve technical expertise through partnerships with local institutions like Great Lakes University of Kisumu, and promote intra-African trade under the African Continental Free Trade Area (AfCFTA) framework.

The plant’s strategic location will serve markets in Kenya, Uganda, Tanzania, Rwanda, Burundi, DR Congo, and South Sudan, positioning the facility as a regional hub for pharmaceutical manufacturing.

Strategic Partnership for Africa’s Health Security

The agreement aligns with Afreximbank’s Africa Health Security Investment Plan, which supports local health product manufacturing to address Africa’s healthcare challenges. During the signing ceremony, Kanayo Awani, Executive Vice President of Afreximbank, emphasized the partnership’s transformative potential:

“This project highlights Afreximbank’s commitment to partnering with both public and private sectors to accelerate innovative healthcare solutions. Its strategic location in Kisumu enables it to promote intra-African trade while improving health outcomes for millions across the continent.”

Government and Leadership Support

The plant’s development is backed by the County Government of Kisumu, which provided the land and facilitated the partnership with the Great Lakes University of Kisumu for technical capacity building. Governor Peter Anyang’ Nyong’o commended the initiative as a milestone in fostering economic and healthcare advancements in the region.

Kenya’s President William Ruto officially opened the AfSNET Conference, where this agreement was signed. Prof. Benedict Oramah, President of Afreximbank, highlighted the project’s alignment with the conference theme: “Leveraging the AfCFTA for Sustainable Trade and Investment: A Development Pathway for African Sub-Sovereigns.”

Next Steps in Financing and Execution

Med Aditus Pharmaceuticals Kenya Limited, established as a special purpose vehicle, will oversee the plant’s design, financing, operation, and maintenance. The project will secure $26 million in debt financing and $14 million in equity.

Dr. Dhiren Thakker, CEO of Med Aditus, expressed confidence in the partnership, noting:

“This plant will transform Africa’s pharmaceutical sector, introducing cutting-edge technologies and ensuring access to affordable, high-quality medicines. Together with Afreximbank, we aim to position Africa as a global leader in pharmaceutical manufacturing.”

AfSNET 2024 Conference Highlights

The AfSNET Conference attracted over 900 delegates, including representatives from national and sub-sovereign governments, with discussions focused on promoting sustainable trade, investment, and development across Africa.

The Kisumu pharmaceutical plant marks a significant leap forward in advancing healthcare, strengthening local economies, and fostering regional collaboration in alignment with Africa’s development goals.