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Published Date - February 2024 Number of Pages - 80
Currently, Africa accounts for only 3% of global pharmaceutical manufacturing and about 70 – 80% of medicines in Sub-Saharan Africa are imported.
Out of the 55 countries, the continent boasts of only 1 pre-qualified vaccine manufacturing institute, Institut Pasteur de Dakar in Senegal which has been manufacturing yellow fever vaccines for 80 years, and 2 countries, that is Morocco and South Africa that meet above 70% of their pharmaceutical needs from local manufacturing.
Implementing the African Continental Free Trade Agreement(AfCFTA) is going to prove beneficial given the fact that fragmented value chains in Africa currently result in significant margins for pharmaceutical products, relative to the 2-21% margins seen in OECD countries.
The African pharmaceutical market is very less developed as compared to the developed continents such as North America, South America, Europe, Asia-Pacific, Middle-East, etc. which further makes it an attractive industry for new investment and growth opportunities.
Governments in many African regions are making their best efforts to improve their healthcare facilities and infrastructures and provide an easy and quick access to medicines, which is expected to boost and trigger the growth of the African pharmaceutical market. Increasing adoption of generic drugs and the significant growth of e-commerce in the African continent are also projected to contribute to the consistent growth of the African pharmaceutical market.
The African pharmaceutical market faces many market challenges such as small and fragmented markets, weak regulatory frameworks, and inadequate manpower capacity. Poor procurement and supply chain systems, along with policy incoherencies across trade, market, health, and finance industry, and lack of funds for R&D activities also hampers the growth of the African pharmaceutical market.
The generics market is the largest segment of the African pharmaceutical market, and it is expected to grow at a CAGR of 10% between 2017 and 2030. This growth is being driven by increasing demand for affordable medicines and government initiatives to promote the use of generics.
In April 2023, WHO and South Korea signed an agreement to produce a global training center for biomanufacturing. WHO, along with partners, launched the mRNA Technology Transfer program with the opening of the Hub facility in South Africa. The center will help low- and middle-income regions generate biologicals such as vaccines, insulin, monoclonal antibodies, cancer medicine.
Africa’s quick urbanization is further driving the growth of some of the key pharmaceutical companies. With the quick emergence of metro cities and growing awareness of multiple health disorders such as diabetes, ADHD, and malaria, there has been a significant surge in the purchase of terminal disease medications and healthcare and pharma costs. The tropical environment in Africa is suitable for the spread of many diseases due to the introduction of new disease-transmitting organisms. Hence, many infectious diseases are already prevalent within the African population, such as Cholera, TB, Influenza, Hepatitis, and AIDS.
By bringing in capital, creating jobs, and earning money through exports, the pharmaceutical business helps Africa’s economy flourish. The continent can save money by reducing its reliance on imported medicines thanks to local pharmaceutical production.Pharmaceutical research and development is becoming a growing area of investment for African nations. Promoting the construction of healthcare facilities, laboratories, and distribution networks, the pharmaceutical sector also contributes to the improvement of the healthcare infrastructure. This enhances the accessibility and delivery of healthcare.
Pharmaceutical firms frequently work with governmental and non-governmental bodies. Programs that give away or subsidize medicines to underserved communities can fall under this category. Building local capability in terms of R&D, manufacturing, and distribution is one way that the pharmaceutical sector helps. Generic drug accessibility can drastically lower healthcare expenses in Africa. Generic versions of necessary medications are frequently produced by local pharmaceutical businesses, making them more accessible to the general public.
The AMA (Africa Medicines Agency) has been working to strengthen regional harmonization to support technical cooperation between the regulatory bodies of different countries on the continent. Governments have developed well-functioning systems in place to track the pharma supply chain to prevent counterfeits. In both the areas, the World Bank Group, including IFC within that, has various initiatives underway.
The Africa Pharmaceutical Market accounted for $40 Billion in 2022 and is anticipated to reach $77 Billion by 2030, registering a CAGR of 10% from 2023 to 2030.
Increasing demand for generic drugs: Generic drugs are becoming increasingly popular in Africa as they are more affordable than brand-name drugs. This is being driven by the rising cost of living and the increasing prevalence of non-communicable diseases (NCDs) such as diabetes and hypertension.
Growing adoption of digital health technologies: Digital health technologies are being used to improve access to healthcare and medicines in Africa. These technologies include telemedicine, mobile health apps, and electronic health records.
Growing importance of e-commerce: E-commerce is becoming increasingly important for the sale of pharmaceuticals in Africa. This is being driven by the increasing penetration of the internet and the convenience of online shopping.
The African Medicines Agency (AMA) launched a new initiative to improve the quality and safety of medicines in Africa. The initiative will focus on strengthening regulatory systems and promoting the use of quality-assured medicines.
The Bill & Melinda Gates Foundation announced a US$200 million investment in the development of new treatments for neglected tropical diseases (NTDs) in Africa. The investment will support the development of drugs and vaccines for diseases such as onchocerciasis, lymphatic filariasis, and schistosomiasis.
Cipla, an Indian pharmaceutical company, launched a generic version of molnupiravir, an antiviral drug for the treatment of COVID-19, in several African countries. This new generic version is expected to make the drug more affordable and accessible to patients in Africa.
GSK launched a new vaccine called Shingrix for the prevention of shingles in adults over 50 years old. The vaccine is now available in select African countries. Novartis launched a new drug called Entresto for the treatment of heart failure in adults. The drug is now available in South Africa and other select African countries.
GSK launched a new vaccine called Mosquirix for the prevention of malaria in infants. The vaccine is the first to be approved for use in infants. Novartis launched a new malaria vaccine called RTS,S in Malawi, Ghana, and Kenya. The vaccine is the first ever to be approved for use against malaria.
