Pharmaceutical Trade To Continue In Deficit

BMI View: We expect Algeria's pharmaceutical trade deficit to continue in the medium term, reaching US$1.76bn by 2014. However, we believe that the government is unlikely to implement far reaching policies to encourage growth in the local drug manufacturing sector. Although with liberalisation continuing on a slow path and persistent high unemployment, there are underlying incentives to boost manufacturing in the country, the pharmaceutical sector is a small contributor to overall export values. Coupled with the fact that Algeria is reliant on imported medicines and that is has a weak business environment, we believe that there is unlikely to be dramatically increased foreign direct investment (FDI) or government investment in the sector any time soon.

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