As global health financing faces increasing pressure, leaders from across the public and private sectors convened at the World Economic Forum’s Annual Health Roundtable to chart a path forward for regionalized vaccine manufacturing. The high-level discussion was hosted by RVMC to discuss the urgent need for new financing strategies to support equitable, resilient and self-sufficient regionalized vaccine production systems to complement the existing global system.
Participants agreed that the decline in traditional donor funding represents a pivotal moment for regionalized vaccine manufacturing. With lessons from the COVID-19 pandemic still fresh, speakers emphasized the importance of moving away from aid-dependent models towards investment-driven approaches, focusing on five key strategies:
- Building a Compelling Investment Case: Regions must present a compelling investment case by demonstrating cost-efficiency, return on investment, and market potential - especially in fast-growing regions like Africa. Aligning private capital with public health priorities is essential, and governments must treat vaccine manufacturing as a strategic national and regional asset.
- Domestic Resource Mobilization: Regions should look for ways to reprioritize or raise more domestic funds - such as introducing or expanding taxes on goods like tobacco, alcohol, or fuel.
- Attracting Diverse Sources of Financing: Financing must combine long-term, risk-tolerant actors like development finance and philanthropic institutions and more return-focused investors who will require competitive business models and clear incentives. Tools such as venture capital, blended finance and social/impact bonds, were highlighted as possible mechanisms.
- De-risking Investments and Creating Demand: Risk mitigation tools - including long-term contracts, volume guarantees, and early procurement agreements - are needed to attract and retain investment. In terms of demand, clear market signals and incentives like multiyear contracts and launch pricing must be established to support manufacturers close to market entry.
- Enabling Competitiveness: To compete with established global manufacturers, emerging producers must be supported to adopt advanced technologies, improve efficiency, and invest in R&D and intellectual property. Supportive industrial policies must be grounded in robust economic analysis and policy coherence.
Regional coordination can optimize resources, reduce duplication, and ensure benefits are shared across borders. The group also drew inspiration from other sectors, including aerospace and defense, where multi-country supply chains and shared infrastructure are common.
RVMC reaffirmed its commitment to supporting sustainable financing models and convening stakeholders to advance the regional manufacturing agenda. Participants concluded the meeting with a shared sense of urgency and a commitment to continued collaboration - laying the groundwork for a more resilient and equitable global vaccine ecosystem.