Diversity across the supplier base has long been a key tenet of Gavi’s approach to shaping sustainable vaccine markets. This brings advantages in terms of supply security and buffers, healthy competition, and innovation. In recent years, it has become evident that geographical diversity across this supplier base is also desirable across several dimensions, chief among which is the desire for equity in manufacturing opportunity, self-determination and regional/local health security, not to mention the financial and climate-related advantages of having production occur closer to consumption.

The COVID-19 pandemic exposed the vulnerability and inequity of access to vaccine supply in Africa, where fewer than 1% of vaccine doses are produced locally. The African Union (AU), G7, G20 and international partners have expressed strong commitment and support for expanding vaccine manufacturing capacity on the continent.

Gavi, as the largest vaccine financier in Africa, is well positioned to leverage its market shaping and innovative financing expertise to facilitate this initiative. In December 2022, the Gavi Board approved a regional manufacturing strategy to support strengthening vaccine supply resilience at regional levels. The strategy was developed to respond to the challenge surrounding equitable access to vaccines during the COVID-19 pandemic, and to the AU’s call to action on building regional manufacturing capacity in Africa.

The four pillars of Gavi’s regional manufacturing strategy

Gavi’s historic role in healthy markets

Since its inception in 2000, Gavi has helped bridge the global vaccine equity gap by immunising over 1 billion children and halving child mortality in lower-income countries. Market shaping has been central to Gavi’s success. By aggregating and co-financing demand for vaccines from lower-income countries, Gavi drives economies of scale and reduces transaction costs, presenting the manufacturer base with predictable long-term market volumes backed by assured financing. This low-risk demand signal, combined with significant economies of scale, makes it viable for manufacturers competing for Gavi-UNICEF procurement to lower the price of vaccines in a sustainable manner for the lowest-income countries.

Since 2001, Gavi has become one of the world’s largest financiers of vaccines, working closely with countries and manufacturers to shape the market for vaccines. Through Gavi’s market shaping efforts, the number of manufacturers supplying prequalified Gavi-supported vaccines has grown from 5 in 2001 to 19 in 2022 (with more than half based in low- and middle-income countries).

Before Gavi’s creation, there was an average 20-year gap between when a vaccine was introduced in high-income countries compared to Gavi-eligible countries. Gavi has reduced this gap significantly: today, some vaccines (e.g. HPV) are introduced simultaneously in high- and lower-income countries.