Investors update: Mastercard seals $45m partnership to manufacture vaccines in Africa

Mastercard seals $45m partnership to manufacture vaccines in Africa

Highlights

• The Mastercard Foundation has signed a $45 million partnership with Senegalese Institut Pasteur de Dakar (IPD) to train young Africans in vaccine manufacturing and production.
• The partnership, named MADIBA (Manufacturing in Africa for Disease Immunization and Building Autonomy), will establish a training center where young Africans especially women will be trained in the skills of vaccine production, research, and distribution.
• The deal comes against the backdrop of vaccine shortage and inequality experienced at the height of the covid-19 pandemic. It also aligns with the African Union’s vision of meeting 60% of vaccine needs in the continent by 2040.

Source: Nairametrics

Our Takeaway

At the outset of the recent global pandemic, Africa, like other poorer regions, was left without adequate vaccine supplies, highlighting the need to develop its own production. The continent imports more than 70% of all the medicines it needs, gulping $14 billion per year. Bolstering local capacity should serve as a major boost to the health prospects of a region that has been battered for decades by the burden of several diseases and pandemics such as Covid-19, but with very limited capacity to produce its own medicines and vaccines. 

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Africa needs 10m housing units annually to meet rising demand

Highlights

• President of the African Federation of Construction Contractors Associations (AFCCA) Hassan Abdelaziz has stated that Africa needs 10 million low-cost housing units annually to meet the increasing population growth.
• Foreign companies are currently investing in these projects to reap huge returns, he says, especially as they bring their equipment, labor, and all building materials for projects. 
• Abdelaziz added that major alliances and blocs have been established between Egyptian and African contracting companies to develop many major projects in Africa, highlighting the need to rehabilitate African contracting companies.

Source: Zawya

Our Takeaway

Africa’s size and urban population are growing, leading to increased demand for housing. Between 2011 and 2020, the continent added more than 300 million new people. That 35% growth took its share of the global population to 16% with more Africans—nearly 200 million—moving into urban areas. For investors with deep pockets, Africa’s housing and real estate sector offers many prospects with market opportunities in serving rising middle-class consumers who are increasingly demanding all-inclusive, high-quality living as well as low-income populations in need of low-cost residential apartments. 

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AfDB invests $20m in infrastructure private equity fund

Highlights

• The African Development Bank (AfDB) Group has approved an equity investment of $20 million in the Africa50 Infrastructure Acceleration Fund I, in support of its target to mobilize private capital for infrastructure across the continent.
• The Fund plans to mobilize up to $500 million for investment and value creation in strategic infrastructure sectors and is sponsored by Africa50, an infrastructure investment platform established by governments and AfDB. 
• Africa50 brings infrastructure project development and financing under one umbrella and has a strong track record of investments in the private sector and of projects undertaken under a Public-Private-Partnership framework.

Source: ABC

Our Takeaway

Africa presents a massive infrastructure investment opportunity with a current investment gap of over $150 billion per year. The continent is home to some of the fastest-growing economies in the world, with a combined GDP of $2.3 trillion and a population of 1.3 billion people. But only 60% of the population has access to basic electricity, among other infrastructure challenges. With funds like the AfDB-backed Africa50  Infrastructure Acceleration Fund I and a growing middle class, the continent’s infrastructure market is poised for substantial growth in the coming years.