IFC Investments Help Combat Malaria

More than a million people die of malaria every year—mostly infants, young children, and pregnant women—according to the World Health Organization. Most of these cases occur in Africa, where malaria costs about $12 billion a year in medical expenses and lost productivity. IFC is contributing to global efforts to stop the spread of deadly diseases like malaria, which is both preventable and curable, by investing in the life sciences industry and promoting innovation for better health in developing countries. In Kenya, for example, IFC is supporting the innovation of Botanical Extracts EPZ Limited, a company that is helping combat malaria with plant-based solutions. The Artemisia annua plant produces the active ingredient in the most effective anti-malaria medicines, which have almost no resistance, a shorter treatment regimen, and fewer side effects than other anti-malarial drugs. Botanical Extracts is the pioneer and East Africa's leading producer of artemisinin, and IFC is providing the company with $7 million in long-term financing for a new local production facility. IFC's $6 million loan and $1 million in equity will help produce anti-malaria medicines in a region where they are needed most. The project is providing employment locally and supporting farmers in Kenya, Tanzania, and Uganda. It is also introducing new process technology in East Africa and setting an example for world-quality extraction and purification of similar plant-based products. Supporting a Vibrant Industry Over the past decade, IFC has invested more than $200 million in life sciences businesses in 21 developing countries worldwide. Supporting a vibrant life sciences industry is an important way to improve access to affordable pharmaceuticals, particularly for diseases associated with poverty in developing countries, including HIV/AIDS, malaria, and tuberculosis. Our life sciences projects are also helping create thousands of jobs and expand access to high-quality, affordable medicines. Life sciences is a large, diverse industry, and IFC invests in several broad categories: Generic pharmaceutical manufacturers Manufacturers of active ingredients Biopharmaceutical companies Retail and wholesale distributors Medical device producers Institutions combating neglected diseases Venture capital funds focusing on life sciences In China, another IFC client is also helping fight malaria. We have invested about $40 million in the Shanghai Fosun Pharmaceuticals Company, a leading local manufacturer and distributor of Chinese and Western medicines. The company's products have been successful in treating malaria as well as diabetes and gynecological and hepatic diseases. With IFC's support, Fosun Pharma is expanding production of its anti-malaria products for Africa, improving health and safety management systems throughout its subsidiaries, and bringing jobs and investment to less developed parts of China. Our Role and Added Value IFC is supporting the health sector through investments and advisory services. We provide long-term financing that may not be available in local markets and work with client companies in the health and life sciences industries to build capacity and adopt environmental, social, and corporate governance best practices. We also mobilize additional funding to help support new research, innovation, and technology. Through these efforts, we are promoting private sector investment in health care in developing countries worldwide. A particular focus is on Sub-Saharan Africa, which accounts for only 11 percent of the world's population yet bears 24 percent of the global disease burden in human and financial costs. A recently published IFC report, The Business of Health in Africa, highlights the critical role the private sector can play in meeting the need for more and higher-quality health care in the region. To learn more about this initiative, visit www.ifc.org/healthinafrica. For more information contact: Carmen Powell IFC Communications Officer Global Manufacturing & Services Phone: +1(202) 473-4982 E-mail: cpowell@ifc.org