Johannesburg, South Africa, September 3, 2024 – To support the production and distribution of life-saving medicines and vaccines in Africa, IFC; Proparco; the German Development Finance Institution (DEG); and the U.S. International Development Finance Corporation (DFC), today announced a joint financing package for Aspen Pharmacare Holdings Limited (Aspen).
The €500 million loan package to Aspen Treasury Ireland Limited, a wholly owned subsidiary of Aspen, includes €150 million from IFC's own account, and €350 million in parallel loans mobilized from DEG, DFC, and Proparco, a subsidiary of Agence Francaise Development, the French Government's development finance institution. Aspen is a South Africa-based, global specialty and branded multinational pharmaceutical company.
The financing will support Aspen's "Manufacturing in Africa for Africa" strategy, which in partnership with global multinational pharmaceutical companies aims to improve the production and accessibility of critical medicines on the continent, including insulins and pediatric vaccines. The loan package will also facilitate distribution and promotion agreements to broaden access to medicines in sub-Saharan Africa and will strengthen Aspen's financial resilience and working capital needs.
Stephen Saad, Aspen's Group Chief Executive, said, "Being a key player in bolstering the African healthcare system is core to Aspen's identity. We are most grateful for the tangible support provided in reaching our objectives. The World Bank Group through IFC has once again demonstrated their commitment by actively assisting Aspen in capacitating Africa. We thank them for their confidence in Aspen and for sharing our vision. Together, we will reach our ambitions of making Africa more independent, giving both dignity and facilitating access to innovation for the African continent."
"IFC is thrilled to enhance its support to Aspen, joining forces with our development finance partners to strengthen regional healthcare systems. We're not just talking about it, we're taking action," said Makhtar Diop, IFC's Managing Director. "By supporting the development of vaccine and human insulin manufacturing capabilities in Africa, along with other vital medications, we're improving access for millions of people. Our efforts align with the African Union's Pharmaceutical Manufacturing Plan for Africa."
"Aspen plays a key role in increasing the production of vaccines and medicines on the African continent and promoting equal access to health products," said Françoise Lombard, CEO for Proparco. "We are thrilled to strengthen our support to the African pharmaceutical champion alongside our trusted partners IFC, DEG and DFC. This new transaction comes shortly after France hosted the launch of the African Vaccine Manufacturing Accelerator ("AVMA") last June, echoing Proparco's ambitions to support the development of local production capacities and to promote access to affordable quality medicines and vaccines."
"DEG is committed to the UN Sustainable Development Goals, one of which is improving healthcare," said Monika Beck, Member of DEG's Management Board. "Therefore, we are delighted to contribute to pharmaceutical manufacturing and distribution in Africa together with our trusted development finance partner institutions. Supporting improved access to quality, innovative medicine across Africa is highly impactful, and the private sector plays a key role in this."
"The growth of resilient economies begins with investments in the well-being of people," said Scott Nathan, DFC's Chief Executive Officer. "Onshore manufacturing of insulin, vaccines, and other pharmaceuticals in Africa will promote public health while creating value for local communities. We're proud to be partnering with Aspen and our fellow development finance institutions to meet this critical need."
Since 1999, IFC has invested and directly mobilized $1.4 billion in Africa's pharmaceutical sector. The project announced today builds on a previous investment of a €600 million long-term financing package to Aspen in South Africa to support the development of vaccines for African countries and promote longer-term health sector resilience.
About Aspen
Headquartered in Durban, South Africa, Aspen is a leading global specialty and branded multinational pharmaceutical company in both emerging and developed markets. Aspen improves the health of patients in more than 115 countries through its high quality, affordable medicines. The Group's key business segments are Manufacturing and Commercial Pharmaceuticals comprising injectable products, prescription and over the counter medicines. Aspen employs more than 9100 people and has 65 established business operations in over 50 countries and territories. The Group operates 23 manufacturing facilities across 15 sites and holds international manufacturing approvals from some of the most stringent global regulatory agencies. Its manufacturing capabilities are scalable to demand and cover a wide variety of product-types including steriles, oral solid dose, liquids, semi-solids, biologicals and active pharmaceutical ingredients. For more information visit www.aspenpharma.com
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org. Stay connected with IFC on social media.
About Proparco
Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners. Proparco's new "Acting together for greater impact" Strategy 2023-2027 enables, strengthens and amplifies the different ways in which it works with its partners. To learn more: http://www.proparco.fr/en/strategy. For more information, go to: http://www.proparco.fr/en and @Proparco LinkedIn
About DEG
For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 10.3 billion we're one of the largest private-sector development financiers. As an impact and climate investor we accompany companies that are addressing transformation and aiming to seize their opportunities. Our customers not only receive financing and advisory solutions tailored to their needs: they can build on our market knowledge, our impact and climate expertise and our international network. In this way, DEG, a subsidiary of KfW, contributes to creating more skilled jobs and local income and to improving value creation on the ground in line with the SDGs. Learn more: www.deginvest.de and DEG's LinkedIn channel.
About DFC
U.S. International Development Finance Corporation (DFC) is America's development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights. The United States is working with the private sector and all possible partners to expand global vaccine manufacturing and distribution targeting investments in multiple regions of the world both to address short-term crisis response requirements as well as intermediate-term efforts to ensure better global preparedness for future health challenges. To learn more, visit www.dfc.gov