BVI embarks on P500m revamp
Pauline Dikuelo | Friday August 29, 2025 14:58
Speaking at a media briefing on Tuesday, BVI CEO, Andrew Madeswi, said the ageing plant had become a significant operational challenge, both in terms of compliance and maintenance costs.
“Our equipment is very old, and its parts are no longer available in the market. This makes maintenance extremely costly,” he explained.
He continued: “We have therefore come up with a five-year plan to revamp our system. Whilst the investment is heavy, it is absolutely necessary.”
According to Madeswi, BVI spent P12 million in the past financial year on the revamp project. However, funding remains a challenge.
“We don’t have the money right now and might have to approach the market if necessary,” he said. “The tricky part about market financing is that interest rates make it more costly. “If we secure funding from government, it will be much better.”
The planned upgrade includes a new blending and filling laboratory, which has reached an advanced development stage. The facility is expected to meet regional and international Good Manufacturing Practices standards, with installation and commissioning scheduled for completion by 2027.
The revamp aligns with the institute’s five-year strategic plan (2021–2026), which focuses on enhancing operational efficiency, ensuring uninterrupted delivery of high-quality vaccines, and broadening its product offering to mitigate revenue concentration risks.
Despite ongoing challenges, BVI demonstrated resilience in its 2023–2024 financial year. Revenue declined by 34%, dropping from P246 million in the previous year to P162 million in March 2024, mainly due to production disruptions and restructuring expenses.
However, the institute remained profitable, with officials crediting the performance to prudent financial management and cost discipline.
BVI’s flagship product, the Foot and Mouth Disease (FMD) vaccine, continues to be the mainstay of its business, contributing up to 86% of sales and enjoying consistent demand across Sub-Saharan Africa and beyond. In 2023–2024, the institute produced 14.26 million monodoses of blended FMD vaccines against a forecast target of 20.9 million, representing a 31.8% shortfall due to supply chain disruptions and rehabilitation works at the plant.
“Our golden egg product, the FMD vaccine, accounts for about 86% of our total sales. This concentration risk is the reason we are diversifying our product portfolio as part of our long-term strategy,” Madeswi said.
In addition to FMD, BVI manufactures four other vaccines: PPR, CBPP, Asymptol (blackleg), and Carbovax (anthrax). Production of these non-FMD vaccines was constrained during the year under review but remains central to the institute’s diversification strategy.
Despite the hurdles, BVI the P162 million revenue recorded in the last financial year was the third-highest in its history, underscoring its importance as a regional vaccine supplier.