ETHIOPIA  PHARMACEUTICAL MARKET

KEY FINDINGS

• Key products purchased in the public and social sector are antivirals and antibacterials.
• Domestic competition is low with only 11 manufacturers, 45% of which are jointly owned by international and local investors.
• China is an emerging force in the Ethiopian pharma sector, with two joint ventures and one fully-owned company.
• The Ethiopian government has put in place several measures to improve the sector. It has developed a 10-year strategy and plan of action for pharmaceutical manufacturing. 
• There are no API manufacturers in Ethiopia. The country solely relies on imports due to the high degree of complexity required.
• Investors would be difficult to attract due to high investment requirements, lack of technology capabilities and relatively low margins.
• Awareness, diagnosis and treatment of diseases are increasing for both communicable and non-communicable diseases in Ethiopia.
• Ethiopia is affected by the burden of communicable diseases; the country is among the highest burden countries for Malaria, HIV/AIDS and TB.
• In addition, prevalence of non-communicable diseases, such as diabetes, cancer, and hypertension has also increased.
• The Ethiopian government is increasing healthcare coverage to its large rural population, thus promoting the need for increased access to pharma.
• Ethiopia has a Health Extension Programme (HEP), which is a community based strategy to deliver health promotion and awareness creation among the public.
• Ethiopia is expected to become a middle income country by 2025 with an average economic growth of 10% per year resulting in an increase in the disposable income of the population; the increase in disposable income will influence spending on healthcare pharma products.
• Government contributes ~60% of total healthcare spend in Ethiopia.
• There is a growing number of private pharmaceutical companies operating in Ethiopia, and these companies are investing in research and development to bring new products to market.

ETHIOPIA PHARMACEUTICALMARKET OVERVIEW

Ethiopia’s domestic pharmaceutical market growth is expected to be driven by a rising middle income base and urbanization at a rate of 5.4% per year, which leads to greater access to healthcare as cities have better infrastructure and healthcare capacities.

Imports account for 65% to 75% of the Ethiopian pharmaceutical market and are primarily sourced from India (22%), Netherlands (20%) and Belgium (13%).

Some 60% of total pharma spend in Ethiopia is public and social sector related, making the Ethiopian Pharmaceutical Supply Agency (EPSA) the single most powerful buyer in the country.

Kilinto Park is Africa’s first dedicated industrial park covering 279 hectares, with 136 hectares of land dedicated to pharmaceutical manufacturing. 

For pharmaceuticals, the share of the public market is even higher – ~75% of all medicines consumed in Ethiopia is procured through the public sector.

The public sector procures products largely based on price, favoring generics medicines • ~90% of branded products are sold through the private pharmaceutical market.

Manufacturers indicated that closed bid RDF procurements by PFSA and protection of the domestic market through import tariffs are the most important market access incentives .

Existing domestic manufacturers indicate that the 25% price premium offered by PFSA in international tenders is less important, as they are seldom competitive even with the price advantage.

Regulatory challenges and access to foreign exchange are among the most significant challenges to pharmaceutical manufacturing in Ethiopia, and incentives aimed at facilitating these processes are important.

INTRODUCTION

The healthcare service in Ethiopia has always consisted of a mixture of public, private and nongovernmental healthcare sectors. However, currently the public healthcare system is organized into a three-tier health care delivery system which was introduced in 2010 (FMOH, 2010).

The pharmaceutical sector in Ethiopia is regulated by Food, Medicine and Healthcare Administration and Control proclamation No. 661/2009(FDRE, 2010). 

Accordingly, the Ethiopian Food, Medicines and Healthcare Administration and Control Authority (EFMHACA) under the Ministry of Health (MOH) and its Regional Regulatory Counterparts are in charge of enforcement of the major regulatory functions 3 including marketing authorization, regulatory inspection, licensing of premises, marketing surveillance and control, pharmacovigilance, clinical trial oversight, etc. 

Ethiopia is one of the first African countries to develop a national strategy for pharmaceutical manufacturing – Strategy: to grow exports in addition to substituting imports and improving access to medicines.

The National Medicines Policy was issued in 1993 with a number of policy implementation instruments developed subsequently.

Majority of Ethiopia’s pharmaceutical requirements are now imported; this is a significant need that local manufacture has not yet been able to meet.

Ethiopia is also struggling with the delivery of various medical products disguised as counterfeit goods, as well as the trafficking of subpar and fake pharmaceuticals. The majority of over-the-counter medications in the nation are found at clinics and hospitals. 

Ethiopia is a landlocked nation in Eastern Africa that shares borders with South Sudan, Eritrea, Kenya, Somalia, and Sudan. Ethiopia’s terrain is made up of high plateaus, with the Great Rift Valley dividing the country’s major mountain range. 

Ethiopia’s manufacturing sector is still developing, and the pharmaceutical sector is no exception. With the assistance of the state and an active local market, things are going quickly. The landscape of the pharmaceutical sector has undergone tremendous transformation.

ETHIOPIA PHARMACEUTICAL MARKETSIZE AND FORECAST

 The Ethiopia Pharmaceutical Market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

ETHIOPIA PHARMACEUTICAL MARKET TRENDS

1. Ethiopia to Launch New Pharmaceutical Manufacturing Plant:The Ethiopian government has announced plans to launch a new pharmaceutical manufacturing plant in the country. The plant is expected to produce a range of essential medicines, including antibiotics, antimalarials, and antiretrovirals. The government is hoping that the new plant will help to reduce the country's reliance on imported medicines and improve access to affordable healthcare for all Ethiopians.
2. Ethiopia Signs Agreement with Chinese Pharmaceutical Company:The Ethiopian government has signed an agreement with a Chinese pharmaceutical company to develop and manufacture new drugs for the treatment of neglected tropical diseases (NTDs). NTDs are a group of diseases that affect more than one billion people worldwide, mostly in poor and rural communities. The new drugs will be developed specifically for the Ethiopian market and will be more affordable than the currently available treatments.
3. Ethiopian Pharmaceutical Company Receives WHO Pre-Qualification:An Ethiopian pharmaceutical company has received pre-qualification from the World Health Organization (WHO) for its production of tuberculosis (TB) drugs. This means that the company's TB drugs are now eligible to be procured by UN agencies and other international organizations. The pre-qualification is a major milestone for the Ethiopian pharmaceutical industry and will help to boost the company's exports.
4. Ethiopia Launches New Pharmaceutical Quality Control Laboratory:The Ethiopian government has launched a new pharmaceutical quality control laboratory in the country. The laboratory will be used to test the quality of medicines that are imported and produced in Ethiopia. The government is hoping that the new laboratory will help to improve the quality of medicines in the country and protect consumers from counterfeit drugs.

ETHIOPIA PHARMACEUTICAL MARKETNEW PRODUCT LAUNCH

Aspen launches new antiretroviral drug in Ethiopia:Aspen, a leading pharmaceutical company in Africa and the Middle East, has launched a new antiretroviral drug in Ethiopia. The new drug is a generic version of a popular antiretroviral drug, and it is expected to be more affordable than the currently available brand-name drug.

Merck launches new diabetes treatment in Ethiopia:Merck, a leading global pharmaceutical company, has launched a new diabetes treatment in Ethiopia. s.The new treatment is a once-weekly injectable medication, and it is designed to be more convenient for patients to take than the currently available treatment

GSK launches new vaccine for shingles in Ethiopia:GSK, a leading global pharmaceutical company, has launched a new vaccine for shingles in Ethiopia. The vaccine is designed to protect adults from shingles, which is a painful and debilitating disease caused by the varicella-zoster virus.

Fresenius Kabi launches premixed injectable antibiotics in Ethiopia:Fresenius Kabi, a global leader in medical care, has launched a range of premixed injectable antibiotics in Ethiopia. The new products are designed to improve the safety and efficacy of antibiotic treatment in the country.

Pfizer launches new pneumococcal vaccine in Ethiopia:Pfizer, a leading global pharmaceutical company, has launched a new pneumococcal vaccine in Ethiopia. The vaccine is designed to protect children from pneumococcal disease, which is a leading cause of pneumonia, meningitis, and sepsis in children under the age of five.

ETHIOPIA PHARMACEUTICAL MARKETMARKET SEGMENTATION

Ethiopia Pharmaceutical Market By Drug Type

• Branded Drug
• Generic Drug
• Over-the-Counter (OTC) Drugs
• Biosimilars

Ethiopia Pharmaceutical MarketBy End-User

• Hospital
• Pharmacies
• Other Institutions

Ethiopia Pharmaceutical MarketBy Distribution Channel

• Public sector
• Private sector
• Informal sector

ETHIOPIA PHARMACEUTICAL MARKETCOMPANY PROFILE

• Ethiopian Pharmaceutical Manufacturing Shares Company (EPHARM)
• Novartis
• Pfizer
• Aspen 
• Merk
• GlaxoSmithKline (GSK)
• Sanofi
• Bayer
• Astrazeneca
• Johnson & Johnson

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What is the size of the Ethiopian pharmaceutical market and how is it expected to grow in the coming years?
2. What are the key factors driving growth in the Ethiopian pharmaceutical market?
3. What are the major challenges facing the Ethiopian pharmaceutical market?
4. What are the government policies in place to support the development of the Ethiopian pharmaceutical market?
5. What are the opportunities for investors in the Ethiopian pharmaceutical market?
6. What is the breakdown of the Ethiopian pharmaceutical market by product type (generics, branded drugs, OTC drugs, biosimilars)?
7. What is the breakdown of the Ethiopian pharmaceutical market by end-user (hospitals, pharmacies, other institutions)?
8. What is the breakdown of the Ethiopian pharmaceutical market by distribution channel (public sector, private sector)?
9. Who are the top players in the Ethiopian pharmaceutical market?
10. What are the market shares of the leading players in the Ethiopian pharmaceutical market?
11. What are the key strengths and weaknesses of the leading players in the Ethiopian pharmaceutical market?
12. What are the competitive strategies of the leading players in the Ethiopian pharmaceutical market?
13. What are the key trends that are shaping the Ethiopian pharmaceutical market?
14. What are the potential impacts of these trends on the Ethiopian pharmaceutical market?
15. What are the opportunities and challenges that these trends present for investors in the Ethiopian pharmaceutical market?