Africa’s heavy reliance on imported medicines and other essential health products exposes countries to supply disruptions, high procurement costs and unpredictable international markets. Fragmented purchasing also limits opportunities for African manufacturers to expand production and compete across the continent.
To address these challenges, the Africa Centres for Disease Control and Prevention (Africa CDC) is implementing the African Pooled Procurement Mechanism (APPM), established through an African Union Assembly decision in February 2024.
The APPM enables countries to combine their purchasing demand, negotiate competitive prices and secure reliable supplies of quality-assured health products. It also seeks to create predictable markets that encourage investment in African manufacturing.
The mechanism has moved from its pilot phase to full implementation, with eight African Union Member States signing a Memorandum of Understanding and another 15 expressing interest in joining. Africa CDC aims to expand participation to all 55 African Union Member States.
Already, 89 manufacturers from 15 African countries have registered with the APPM. The next phase includes establishing framework agreements covering product specifications, procurement volumes and competitive pricing, creating clearer opportunities for manufacturers to supply the continental market.
The APPM is designed to complement national procurement systems and existing Regional Pooled Procurement Mechanisms (PPMs), rather than replace them. This approach allows countries and regional economic communities to maintain their procurement arrangements while benefiting from coordinated continental demand and economies of scale.
Regulatory collaboration is another priority. The APPM is working with National Regulatory Authorities (NRAs) and the African Medicines Agency (AMA) to strengthen quality assurance, promote regulatory alignment and facilitate access to quality-assured health products. National authorities will retain responsibility for approving and overseeing products in their respective markets.
Just as important, the mechanism prioritises transparent procurement, sound financial governance and reliable payment arrangements to build confidence among participating countries, suppliers and manufacturers.
By connecting collective purchasing power with local production, the APPM supports the African Union’s ambition to manufacture 60% of the continent’s health products locally by 2040. Its implementation marks a shift towards a more coordinated continental market, stronger supply chains and greater African health security and sovereignty.
