The Rwandan government on Tuesday, September 17 announced a new round of €40 million – about Rwf60 billion – financing in grants by the European Union in a bid to increase local manufacturing and equitable access to quality, safe, effective, and affordable health products.
The development was announced on the sidelines of the East Africa Pharma & Biotech Conference 2024 underway in the capital, Kigali. The two-day conference aims to, among others, leverage experiences for the continuous development of the pharma and biotech sector in the region.
Belén Calvo Uyarra, the Ambassador of the European Union to Rwanda, maintained that the new initiative seeks to cover four major projects, particularly in the areas of pharmaceutical research and development, skills development, including higher education and vocational training (TVET), entrepreneurship, supply chains, and regulatory strengthening.
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She pointed out that the funding complements the ongoing activities of the EU and its member states under the Team Europe Initiative on Manufacturing and Access to Vaccines, Medicines, and Health Technologies in Africa (MAV+) Rwanda inclusive.
"Today’s signature marks a momentous occasion for the partnership between Team Europe and Rwanda. Guided by the EU’s global gateway strategy, together with member states France, Sweden, Germany, and Belgium, these projects will support Rwanda in its vision of becoming a regional hub for the pharmaceutical and biotechnology industry, and to establish domestic pharmaceutical and vaccine production.”
The EU’s financial muscle comes at a time when the demand for high-quality and affordable medical products is on the rise in East African countries, largely attributed to a growing population and an increase in the overall regional disease burden.
As it stands, the region currently relies heavily on imported medical products, which limits access to essential pharmaceuticals, vaccines, diagnostics, and medical devices.
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The challenge has seen leaders in the region committing to strengthening pharmaceutical manufacturing, according to Yvan Butera, the Minister of State for Health.
"The Government of Rwanda remains committed to building a pharmaceutical manufacturing hub to facilitate access to medical products within Rwanda and across Africa. Today’s signing ceremony signals that developing local pharmaceutical manufacturing capacity and addressing global health imbalances continues to be a priority for the European Union as well,” he reiterated.
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In Rwanda, officials said, Team Europe has been instrumental in supporting the development of the local pharmaceutical manufacturing and research ecosystem, particularly regarding human capacity building.
The projects will be implemented by member state agencies, Expertise France, Sweden, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and Enabel, in close collaboration with Rwandan counterparts as well as additional Team Europe actors.
The context
East African countries are increasingly recognizing the potential of pharmaceutical and biotechnological manufacturing for public health and sustainable economic growth in the region. Latest statistics indicate that an aggregate market size of more than $4 billion within the region provides a niche market for nurturing competitive industry operations at scale.
Companies in the region are also poised to address the overall continental opportunity that is worth $20 billion.
This, among others, has seen countries creating supportive ecosystems that can unlock potential for pharmaceutical and biotechnological manufacturing. These initiatives include workforce development, regulatory strengthening, entrepreneurship, and infrastructure development, among others.