Nigeria set to become the first West African manufacturing hub for insecticide-treated nets in the battle against malaria

24 September 2024 – Abuja, Nigeria. Vestergaard Sàrl announced today that the Government of the Federal Republic of Nigeria, acting through the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), has signed a Memorandum of Understanding (MoU) with the company, as an initial step to establish the country as the first West African manufacturing hub for insecticide-treated nets (ITNs) to combat malaria – and the first on the continent to produce dual active-ingredient nets to help combat insecticide resistance.

Nearly every minute, a child under 5 years old dies from malaria. The African continent accounts for almost 95% of the world’s malaria cases – one quarter of these are in Nigeria. New approaches are needed to boost access to tried-and-tested, cost-effective tools to combat the disease, and local manufacturing of nets, medicines and vaccines is a priority for the continent.

The MoU announced today lays the foundation for Vestergaard to establish a joint venture with a local manufacturing partner in Nigeria, potentially supported by MedAccess, a social investor founded by British International Investment, the UK’s development finance institution and impact investor. Selection of an appropriate partner is currently underway and will be subject to the satisfactory conclusion of a due diligence process. Vestergaard is also discussing opportunities for financing with the U.S. International Development Finance Corporation (DFC).

If successful, the joint venture will result in a state-of-the-art manufacturing facility that is expected to function as a flagship on ITN quality and bioefficacy performance, as well as industrial health, safety and sustainability practices. At scale, the planned facility would produce 10 million PermaNet® Dual long-lasting insecticidal nets every year, for both domestic use in Nigeria and international export. It would create around 600 jobs in Nigeria.

Dr Muhammad Ali Pate, Hon. Minister of Health for Nigeria, said: “Increasing access to long-lasting insecticide-treated nets is crucial. We cannot afford to underestimate the power of prevention in our fight against malaria. Collaborative efforts, such as this, are essential to mobilizing the resources and expertise needed to combat malaria effectively.”

Dr Abdu Mukhtar, National Coordinator of PVAC, said: “High standards in local production are non-negotiable. By investing in local bed net production, we are not only improving health outcomes but also paving the way for a self-sufficient healthcare system that can withstand global challenges. This partnership with Vestergaard is a significant step towards attaining this for Nigerians and the broader West African population. ”

Michael Anderson, CEO of MedAccess, said: “Next generation mosquito nets are powerful tools to save lives and prevent debilitating disease. Regional manufacturing is in turn a critical tool to ensure that the nets are available quickly, reliably, and sustainably. This agreement between the Government of Nigeria and Vestergaard underlines an important commitment to protecting people from malaria while strengthening supply chain resilience in the region. MedAccess is looking forward to working in partnership to explore how innovative finance can support this initiative.”

Jim Polan, Vice President, Office of Health & Agribusiness at the U.S. International Development Finance Corporation (DFC), said: “DFC’s investments in regional manufacturing, particularly in Africa, aim to strengthen health system resilience and diversify supply chains. We are exploring a variety of opportunities to expand access to critical health products, including bed nets, to ensure the region is better prepared to respond to malaria and other vector-borne transmission due to changing climate patterns.”

Amar Ali, CEO of Vestergaard, said: “This partnership exemplifies the leadership and commitment of the Nigerian government in the fight against malaria. We are very grateful for their engagement and support as we work together with partners to create a cutting-edge facility that will set a global benchmark in the manufacturing of dual-insecticide nets.”

ENDS

About Vestergaard Sàrl

Vestergaard is a dynamic social enterprise dedicated to innovation in material science that can help solve some of the world’s most pressing challenges. Our PermaNet® insecticide-treated bed nets have become a mainstay of global malaria elimination programmes. Founded in Denmark in 1957, today the company is headquartered in Switzerland, with manufacturing and quality testing operations in Vietnam. We have a strong presence in Africa, with employees located across the Sub-Saharan region and facilities including a vector control research laboratory in Ghana established in partnership with the Noguchi Memorial Institute for Medical Research. We have been a member of the United Nations Global Compact since 2006, and a certified B Corporation since 2021.