Africa CDC Launches Pooled Procurement to Bolster Local Pharmaceutical Industry

Addis Ababa, October 15, 2025 (ENA) -- Africa Centres for Disease Control and Prevention (Africa CDC)  has launched a continent-wide pooled procurement system across all 55 African Union countries.

This initiative is designed to improve affordable access to quality health commodities while prioritizing African manufacturers to build sustainable pharmaceutical markets and local production.

The African Pharmaceutical Suppliers Meeting, held in Addis Ababa from October 14–15, 2025, highlighted the African Pooled Procurement Mechanism (APPM) as a transformative instrument, which is designed to strengthen local pharmaceutical manufacturing, lower costs, and reinforce medical supply chains, ultimately advancing health sovereignty across the continent.

The mechanism also works by consolidating demand for medicines, vaccines, diagnostics, and other essential health products..

Speaking at the event, State Minister of Health Frehiwot Abebe addressed the urgent need to overcome Africa’s chronic health supply challenges, particularly in tackling non-communicable diseases (NCDs) like cancer and cardiovascular illnesses.

 

She noted that the high cost of these vital medicines often results from fragmented and limited demand across countries.

“Centralized pooled procurement can be a game-changer by improving pricing, ensuring quality control, and promoting equitable distribution,” she stated.

Frehiwot went on to highlight the APPM’s strategic alignment with the African Continental Free Trade Area (AfCFTA), describing this synergy as “crucial for serving both African and global markets.”

She also underscored Ethiopia’s growing leadership in the sector, citing the country's recent World Health Organization recognition at Maturity Level 3 for the pharmaceutical supply chain and regulatory capacity.

She stressed that Ethiopia's robust logistics infrastructure is vital for the success of continent-wide health commodity distribution, noting, “Ethiopian Airlines and Ethiopian Shipping Lines can reach every corner of the world.”

Dr. Abebe Genetu, Africa CDC’s Local Manufacturing Coordinator, echoed these sentiments, praising the transformative potential of the APPM. He stated the key strategy is prioritization: “We want to support local manufacturers because we will prioritize African producers in our procurement decisions.”

 

The coordinator acknowledged, however, that some global sourcing would remain necessary in the short term.

He also stressed the critical need for workforce development to combat the continent’s shortage of skilled pharmaceutical professionals.

Dr. Abebe called for strong industry, academic partnerships to sustain capacity building: “We need thousands of experts, and for that, we need strong industry–academic linkages.”

Director General of the Ethiopian Pharmaceutical Supply Service (EPSS), Dr. Abdulkedir Gelgelo, shared Ethiopia’s successful experience with pooled procurement.

 

Operating through 19 warehouses and serving over 130 million people, the system is a model of efficiency, he added.

“Medicines now reach every corner of the country efficiently,” he said, positioning Ethiopia's proven model as a best-practice example for other African nations aiming to enhance drug availability and distribution.

This collaborative African initiative culminates in an ambitious goal: to locally produce 60 percent of vaccines by 2040. Achieving this is crucial for strengthening the continent’s resilience and ensuring equitable access to essential health products.