Economic and Political commentators have made it quite clear that the tensions between the US, Israel and Iran are unlikely to die down in the next couple of months. Therefore, Africa’s best bet is to expand local production, making its healthcare, pharma and agriculture sectors resilient against international shocks.
With the outbreak of the Ebola virus yet again, the dialogue surrounding the healthcare and pharmaceutical sectors in Africa has reemerged. The recent Iran crisis and the subsequent closure of the Strait of Hormuz have upended the global supply chain. Shipments containing vital humanitarian aid like food and medicines are not reaching Africa on time.
Economic and Political commentators have made it quite clear that the tensions between the US, Israel and Iran are unlikely to die down in the next couple of months. Therefore, Africa’s best bet is to expand local production, making its healthcare, pharma and agriculture sectors resilient against international shocks.
Ethiopia has made waves in supporting local medicine manufacturing and is now categorised as the 9th African nation to reach WHO Maturity Level 3 (for medicines regulations), with local production exceeding 40%. This recognition from the WHO implies that Ethiopia’s regulatory system meets global standards.
Ethiopia’s pharmaceutical progress is centred around three reinforcing elements: regulation, industrial infrastructure, and research and human capital. Strong regulations garner international trust in the products and also open markets. Strict manufacturing standards and inspections push up product quality and also earn the trust of patients, buyers, and institutions. By strictly enforcing such regulations, Addis Ababa officials have been successful in exporting Ethiopian pharma products to regional markets.
Such regulatory frameworks are gaining traction in Africa and are not limited to the pharma sector. Eight countries with ML3 status have signed agreements to mutually accept the others’ decisions. Such agreements reduce duplication and increase the chances of market entry for medicines approved in Ethiopia.
The second important factor is infrastructure. Regulations alone are not enough to sustain growth; infrastructure designed for pharmaceutical production is equally important. To this end, the Ethiopian government has designated a special economic zone (SEZ) for pharmaceutical and medical equipment manufacturing. Along with developing these SEZs, it is also necessary to improve the roads and public transport systems, ensuring they have direct access to regional markets.
Finally, like all sectors, the pharmaceutical sector cannot thrive without adequate research, innovation, and skilled professionals. The World Bank has supported some local research organisations like the Armauer Hansen Research Institute (AHRI), which are helping shape the country’s research ecosystem.
Such research institutes are strengthening laboratory infrastructure and expanding their capacity for research and development, bringing out studies which contribute both globally and domestically. They also implement good manufacturing practices and monitor locally produced medicines to ensure they meet required standards for both domestic use and export.
South Africa is also making strides to develop its pharmaceutical sector. In June, Deputy President Mashatile met with Revanth Reddy, Chief Minister of the Indian State of Telangana, to discuss opportunities for deeper cooperation between the two BRICS members in areas of pharma, medical tourism and skilled workforce development.
Mashatile emphasised South Africa’s interest in opening up the country’s market to Indian pharmaceutical companies. He explained that investment from Indian companies is a step towards accessing affordable medication, as part of the government’s universal healthcare goal. With one market opening up on the continent, Indian companies will soon be able to enjoy preferential market access into the rest of Africa through the AfCFTA.
Nigeria is yet another country which aims to position itself as Africa’s pharmaceutical manufacturing hub. However, this ambition has come under serious threat due to infrastructural gaps. Pharma manufacturers appealed for government intervention to prevent rising production costs and continued dependence on imported medicines. Local manufacturing is impeded by poor electricity supply, inadequate funding and weak industrial support systems, limiting production and also preventing Nigerian medicines from competing in the international market.
Nigeria is home to one of Africa’s largest healthcare markets and has a rapidly growing population. Therefore, this warning from producers must be taken seriously, as there have been growing concerns regarding the country’s heavy reliance on imported pharma products. Insufficient and inconsistent power supply has been described as one of the biggest production-related challenges, eroding profitability and discouraging investment.
Earlier this year, Tanzania launched an ambitious program to develop its local pharmaceutical industry to reduce import reliance and to become an East African manufacturing hub. Importing nearly 80% of its medicines and medical equipment costs the country a whopping $1 billion annually. To that end, several international companies have shown interest, as investor confidence was boosted by available infrastructure, regional market access and government facilitation mechanisms supporting the sector.
A Pharmaceutical Investment Acceleration Task Force has been set up and is easing entry procedures and improving coordination. Tanzania’s large domestic demand, regional export opportunities, improved business conditions and development of dedicated industrial zones are making the country an attractive candidate for international investments.
Local production is a top priority for the continent, as the Africa Centres for Disease Control and Prevention (CDC) has set a target to achieve vaccine sovereignty by 2040. This means domestic producers must manufacture 73 times more vaccines than they are currently producing. Africa received €1.1 billion in long-term financing from the IFC, the private-sector arm of the World Bank, in partnership with the pharma giant Aspen to expand domestic pharmaceutical production capabilities.
This aid has gone into two major initiatives. The first was in 2021 to bolster the continent’s vaccine supply chain in the aftermath of the Covid-19 pandemic; the second was in 2024 to improve access to critical medicines in Sub-Saharan Africa and strengthen Aspen’s financial resilience and working capital needs.
Africa is rapidly approaching pharmaceutical self-reliance as a result of geopolitical upheavals and global supply chain shocks. While Tanzania’s strategic investment task teams and Ethiopia’s regulatory accomplishments serve as models for domestic success, countries like Nigeria show that significant infrastructure deficiencies nevertheless pose a threat to advancement.
Despite these obstacles, collaborative efforts, growing intracontinental trade frameworks like the AfCFTA, and billions of dollars in foreign financing are pushing pharma sector growth in several African countries. In conclusion, removing domestic and regional obstacles to attain medicine sovereignty remains a crucial economic, social and political objective for the continent.
