Cape Town – South Africa’s Minister of Trade, Industry and Competition, Parks Tau, says Africa is increasingly becoming a producer, innovator and strategic partner in global healthcare manufacturing, as he turned the first sod at the Biovac facility expansion in Cape Town this week.
The ceremony marked the launch of a €95 million Team Europe financing package for Biovac, described as the largest financing package in the company’s history. The funding, channelled through the European Union’s Global Gateway external investment programme, will support the expansion of vaccine manufacturing capacity in South Africa, with direct implications for health security across the continent, including in Eswatini.
Tau was speaking as part of the Department of Trade, Industry and Competition’s 2026/2027 Pre-Budget Vote stakeholder engagement programme, which has been showcasing the impact of government-supported industrialisation initiatives and strategic investments in priority sectors. 
“One of the lessons from COVID-19 health and economic pandemic experience is that Africa must build stronger regional pharmaceutical, medical device, In-Device Validation, diagnostic and vaccine manufacturing capabilities to ensure greater health security, resilience, and self-reliance. Despite our challenges and high import dependence, South Africa has both the capability and the responsibility to play a leading role in this continental effort,” said Tau.
He added that the Biovac expansion directly advances the broader industrialisation agenda by deepening local pharmaceutical manufacturing, expanding advanced production capabilities, supporting technology transfer, strengthening innovation ecosystems and creating highly skilled employment.
“Importantly, this investment aligns strongly with the African Union’s aspirations for health sovereignty, the Partnerships for African Vaccine Manufacturing initiative, and the African Continental Free Trade Area’s objective of building regional value chains and strategic industrial capability across the continent. At its core, this project demonstrates the critical link between industrial development and public health security,” Tau said.
He also welcomed the partnership between the European Investment Bank, the International Finance Corporation, Proparco, the Industrial Development Corporation and the European Commission, as well as the role of GAVI and the African Vaccine Manufacturing Accelerator, a US$1.2 billion ten-year fund supporting African vaccine manufacturers on their path to sustainability.
Biovac Chief Executive Officer Dr. Morena Makhoana said the presence of government at the ceremony carried deep symbolic weight.
“Whilst Biovac works and is being supported by global partners either in developing new products, technology transfers, and innovative financing, there is nothing that can replace home-grown support. This moment that we celebrate with the South African government is truly important to demonstrate that the local ecosystem in South Africa led by our government is equally and truly supportive of our quest to be an end-to-end vaccine manufacturer of equal standing to our international peers,” said Makhoana.
Chairperson of the European Parliament’s Foreign Affairs Committee, David McAllister, said the investment went beyond financing.
“I am glad to be in Cape Town today to mark Team Europe’s contribution to Biovac. Our €95 million contribution represents the largest financing package in Biovac’s history and demonstrates concretely the impact of the European Union’s Global Gateway in Africa’s health security, as well as in building resilience and reducing dependencies. Beyond financing, this is about transformational impact on skilled jobs, industrial value chains, local beneficiation and EU-Africa private sector partnerships, fully aligned with South Africa’s local manufacturing ambitions. These developments mark a promising new phase for Biovac and for Africa’s broader vaccine manufacturing agenda,” McAllister said.
The expanded facility will manufacture vaccines for cholera, polio, pneumonia and meningitis, with a production capacity of between 30 and 40 million doses annually. It is expected to be completed by 2028 and will create more than 340 skilled jobs and 7,000 indirect jobs.
Biovac was established in 2003 as a South African biopharmaceutical company in partnership with government to build local vaccine manufacturing capability. The investment aligns with the African Union’s Vision 2040 goal of achieving 60% local vaccine production and supports several United Nations Sustainable Development Goals. It is a flagship project under the EU-South Africa Comprehensive Trade and Investment Partnership.
