- The African pharmaceuticals market is projected to reach $34 billion by 2027.
- Egypt has been tipped to contribute most to Africa’s pharmaceutical industry’s growth.
- What implication does this change present to global pharmaceutical giants?
Africa pharmaceutical investment is well underway, and for the first time, the continent seeks to produce and distribute medicinal drugs but, what would be the impact on the global industry? “The failures of the global health systems during the COVID-19 pandemic—when export restrictions, lockdowns, and hoarding sent supply chains into frantic disarray—made local manufacturing of pharmaceutical supplies a top priority for African leaders,” notes global health writer Sara Jerving in her report titled New foundation is ready to help African pharmaceutical manufacturers.
Africa pharmaceuticals market reached $25 billion 2022 and is expected to grow at a 6 percent five-year CAGR to reach $34 billion by 2027 reports IQVIA, a global research institute. According to the researchers, the implementation and/or growth of universal healthcare across the continent will lead to improved access to medicines.
Egypt tipped to reap big in Africa pharmaceutical growth
Egypt will contribute most to Africa’s pharmaceutical growth and will remain the largest market at $5.8 billion in 2027 followed by Nigeria and South Africa.
In this regard, the African Development Bank launched what is known as the African Pharmaceutical Technology Foundation (APTF) two years ago and described it as, “Africa’s first-of-a-kind institution formed to build the continent’s drug production and distribution capacity.”
The foundation will work systematically to create a self-reliant pharmaceutical industry by ensuring more technology and know-how transfers happen, explains the AfDB in its report. “It is envisioned that the Foundation’s work will be central to Africa’s pharmaceutical sector. It is the first of its kind to foster collaboration between the public and private sectors in Africa, North America, Europe and the rest of the developing world,” details the report.
African Pharmaceutical Technology Foundation
Rwanda is the designated host country for the African Pharmaceutical Technology Foundation. Already, the Foundation has signed a memorandum of understanding with the European Investment Bank to back its operations.
“The Rwandan government has played a pivotal role in anchoring the Foundation and granting it the status of an international agency,” commented Dr. Vincent Biruta, Rwanda’s Minister for Foreign Affairs and International Cooperation.
The minister underlined how important the APTF is to Africa and how it will serve to “close the vaccine equity gap between African countries and the world’s developed nations. To close the gap, we must continue investing in pharmaceutical production in Africa and other developing countries,” he said.
The minister pointed out that technology and knowledge transfer are central to health care and so, “It (APTF) will help Africa gain rapid access to the latest pharmaceutical breakthroughs.”
Present to witness the host country signing event was the African Development Bank Group President Dr. Akinwumi Adesina. The pact was signed by the Rwandan minister and the interim CEO of the African Pharmaceutical Technology Foundation, Professor Padmashree Gehl Sampath.
“Building Africa’s pharmaceutical sector to serve the continent is an idea whose time has come. It is important that we now increase the maturity of Africa’s pharmaceutical industry by supporting the development of local production and innovation capabilities,” noted Prof. Sampath
On his part, Dr. Adesina said the establishment of the Foundation is fulfillment of the pledge that “Africa will have what it needs to build its own health defence system, which must include a thriving African pharmaceutical industry, and a quality healthcare infrastructure.”
“Technology is the main transformative tool that will enable the development of a competitive pharmaceutical industry that Africa will need to secure the health and wellbeing of all her people,” he said.
He also announced that; “The AfDB is committed to investing up to $3 billion over the next decade in the development of the pharmaceutical industry as part of our efforts to industrialise Africa and lessen the continent’s reliance on imports.”
Also Read: What WHO and Africa CDC seek to achieve with $600M Mpox outbreak response plan
APTF global support
One of the APTF key supporters is Germany and Dr. Bärbel Kofler, Parliamentary State Secretary in Germany’s Federal Ministry for Economic Cooperation and Development. Dr. Kofler, who is also the AfDB Group Governor, noted; “For Germany it is a great privilege to serve on the Board of Directors of this important institution. My government is committed to supporting the African Pharmaceutical Technology Foundation through a strong partnership based on shared values and aspirations for a healthier and safer Africa.”
Also commenting was World Health Organization Director-General Dr Tedros Adhanom Ghebreyesus who said; “The World Health Organization is proud to support the African Pharmaceutical Technology Foundation and its mission to increase access to safe and effective medicines for Africa. Health is not a privilege. It’s a human right, which is integral to development and sustainability.”
On his part, the World Trade Organization Director General Dr Ngozi Okonjo-Iweala said; “I leave you with a firm pledge of our support for the African Pharmaceutical Technology Foundation, which has enormous potential to transform the pharmaceutical industry in Africa and contribute to health equity across the continent. Let’s work together to make the Foundation an inspiring African success story.”
Then there is Gelsomina Vigliotti, Vice President at the European Investment Bank, “…the European Investment Bank is committed to working with our partners to strengthen public health and health innovation across Africa, and around the world. We are pleased to support the visionary African Pharmaceutical Technology Foundation. Strengthening access to finance is essential to scale up pharmaceutical investment and innovation across Africa,” he said.
Notably, the European Investment Bank has pledged to help mobilise new financing instruments to overcome market failures and mobilise pharmaceutical investments across Africa. “Both organisations will use their convening power to crowd in more multilateral public and private financing into pharmaceutical production in Africa,” the Vice President said.
Established by the AfDB as an independent agency, the APTF focuses on building capacities of African companies, research institutions and governments to ensure a strong and competitive pharmaceutical sector in the region.
We work with a range of partners — governments, regional organizations, global agencies, industry associations, and the private sector — to improve Africa’s access to the technologies needed to discover, develop and manufacture medicines, vaccines and diagnostics
