Boosting Local Production Capacity of Pharmaceuticals and Vaccines

IFC is strengthening local manufacturing of vaccines, pharmaceuticals, and medical supplies in developing countries by partnering with key stakeholders to build sustainable production capacities and enhance healthcare resilience.

Developing countries often lack the infrastructure, financing, and other capabilities needed for research, production, and distribution of healthcare products, including vaccines, pharmaceuticals, biopharma, and medical equipment. The COVID-19 pandemic highlighted the critical importance of having reliable access to essential health supplies for resilient and responsive health systems.

IFC is working with partners, among them other development finance institutions, international organizations, and manufacturers, to develop and implement innovative solutions for strengthening the local manufacturing of health supplies. However, building local capabilities and capacities goes beyond financing manufacturing facilities. IFC is committed to helping establish sustainable manufacturing by ensuring that the right enabling environment is in place, including the necessary policies and regulations, research and development capacities, supply chains and labor force training.

In Africa, approximately 99 percent of vaccines are imported, and many low and middle-income countries face shortages of diagnostic tools. For instance, a study of 10 countries found that the median availability of diagnostics was 19 percent in basic primary care facilities, 49 percent in advanced primary care facilities, and 68 percent in hospitals. Enhancing health services requires bringing the manufacturing of medical supplies closer to users through regional hubs and other localization strategies.

Among our projects, we have the Regionalized Vaccine Manufacturing Collaborative, focused on strengthening regional production among the ASEAN countries; and in Africa, IFC is partnering with WHO and other international organizations, governments, and manufacturers to identify opportunities and challenges for developing regional solutions for the manufacture of medical supplies in the continent.

IFC’s work in life sciences encompasses pharmaceuticals, vaccines, biopharma, and drug distribution.