BVI makes over P40 million profit
Botswana Vaccine Institute (BVI) moved swiftly and put mechanisms in place that enabled it to turn around its misfortunes from a loss of about P30 million in the 2019-2022 financial period to a profit in the current year.
With the new turnaround strategic plan, BVI was able to achieve a record profit of P46 million in the period 2022/2023. And the positive news coming out of the Institution is that they have experienced similar good performance for the current financial year and are guaranteed a good profit once again of about P46 million.
In an exclusive interview with the Botswana Guardian, Andrew Madeswi, the Chief Executive Officer of BVI, confirmed that they have developed and put into action a strategy aimed at transforming the organisation into a profitable entity. 'Our financial report is now available and is awaiting approval from the Board of Directors,' he said.
Madeswi said they are now in a better structure that can carry them forward. 'As this changed our business, which is heavily relied on our business partner; Boehringer Ingelheim Animal Health (BIAH).'
BVI is now very clear with its mandate, and in order to reduce its reliance on one partner, BVI delegation is this week in Beyonce, France engaging its partners in negotiations.
According to Madeswi, the delegation is composed of the Chief of Staff, Boyce Sebetlela, Government Negotiator, Phadza Butale, BVI Director Dr Gaseitsiwe Sento, a Senior official from the Attorney General Chambers, Madeswi and BVI ‘s Chief Commercial officer, Dr Mokopasetso. Madeswi emphasised that the critical aspect for BVI lies in its technical partners who have collaborated on products from the research phase. These partners agree on the product, its production process, and grant exclusive selling rights for specific countries, though one remains non-exclusive.
The challenge arises in the sustainability of this model, as it does not allow BVI ownership since it joins the process after formulation, resembling a franchise model. Thus, BVI seeks a model where it can actively participate from the beginning, ensuring resilience against potential changes by partners in the future.
BVI's focus extends to African growth, despite the limitations of exclusive and non-exclusive agreements. The organisation envisions creating a Pan-African Company, consolidating efforts for comprehensive planning and resource allocation across the continent.
The government's commitment to reshaping BVI is evident in negotiations, showcasing a determination to transform the institute into a significantly influential entity.
Madeswi disclosed that the initial investment involved a 40 percent government stake, with a French partner secured to establish BVI as a strategic reference laboratory for FMD in the region. BVI gained recognition from the World Health Organisation for its expertise.
Under the new structure, with 125 employees, BVI aims to engage in Research and Development (RAD) independently and expand its commercial department to tap into the private sector.
While happy with a 10-year contract, BVI anticipates more value from its partnership with Boehringer Ingelheim, the second-largest global health manufacturer. BVI emphasises the need for liberation to operate freely in Africa and benefit from Boehringer Ingelheim's extensive portfolio, promoting a relationship akin to a global giant.
The partnership, being technical and not involving shared ownership, maintains government as the sole shareholder. BVI pays royalties and commissions for technology use, with no consideration for costs on the partner's end.
Madeswi said what is quite key for them at a very high level is that these technical partners have been working with them, with the products that were being researched on. He added that going forward the sustainability of the model is critical, as it does not give BVI an opportunity to own the product.
He said BVI ‘s top five customers, who are Botswana's neighbouring countries, have been taking key interest in controlling FMD.
'We have seen Namibia, Zambia, South Africa, Zimbabwe being very effective in controlling FMD especially in areas where we share our borders. There is a lot of improvement and this is a joint effort. We believe that with time, if this continues, we will have less risks of new emergence of FMD within the areas especially where the borders are.'
According to Madeswi, most of these areas are in the green zones like the North West, where there was a scare recently. These Zones start from Lobatse all the way to Kgalagadi. If it gets affected, it could contaminate the entire area.
'We need to continue doing joint vaccinations with our neighbours. We should strongly ensure that our vaccinations cover the borderlines,' he said.