This initiative supports local pharmaceutical manufacturing, promotes sector growth, reduces healthcare costs, and enhances supply chains, particularly for costly treatments like cancer and cardiovascular diseases.

The APPM aligns strategically with the African Continental Free Trade Area (AfCFTA), and Ethiopia’s leadership in pharmaceutical capacity has been recognized by WHO at Maturity Level 3.

At the African Pharmaceutical Suppliers Meeting in Addis Ababa, officials highlighted the African Pooled Procurement Mechanism (APPM) as a strategic tool to strengthen local manufacturing, reduce costs, and improve medical supply chains, all aiming for greater health sovereignty across the continent.

Africa CDC has launched a continent-wide pooled procurement system involving all 55 African Union member states to enhance access to medicines, vaccines, and diagnostic tools, supporting local industries and improving healthcare delivery.

Ethiopia’s State Minister of Health, Frehiwot Abebe, emphasized the importance of centralized procurement in tackling high treatment costs and strengthening healthcare, especially for expensive medicines for non-communicable diseases.

Africa CDC’s local manufacturing coordinator, Abebe Genetu, stated that priority would be given to African producers in procurement decisions, while also recognizing the need for overseas procurement and developing a skilled pharmaceutical workforce through industry–academic partnerships.

The initiative aims for Africa to produce 40% of its vaccines domestically by 2040, with a broader goal of reaching 60%, to boost resilience and ensure equitable access to health products across the continent.

The APPM consolidates demand for medicines, vaccines, diagnostics, and other essential health products, facilitating better pricing, distribution, and supply chain efficiency.

Ethiopian Pharmaceutical Supply Service (EPSS) demonstrated its effective model, operating 19 warehouses and serving over 130 million people, exemplifying efficient drug distribution.