Industry Trend Analysis - Highly Challenging Region Will Limit Innovative Drugmaker Activity - FEB 2018

BMI View : North Africa ' s pharmaceutical markets present a diverse mix of opportunities and challenges for multinational drugmakers. While the sub-region has a less attractive pharmaceutical profile within the wider Middle East and North Africa region, we expect it to remain an important driver of regional medicine expenditure over our forecast period. Given the region ' s high level of exposure to risk, multinationals will continue to target those markets with high growth potential as a gateway to accessing multiple markets.

The pharmaceutical markets of North Africa, made up of Algeria, Egypt, Libya, Morocco and Tunisia, present a highly challenging region for the sale of high-value medicines. Low affordability levels, a lack of healthcare infrastructure and weak regulatory procedures are all characteristic of African pharmaceutical markets, weakening North Africa's attractiveness to innovative drugmakers within the wider Middle East and North Africa (MENA) region.

Despite this, North Africa's geographical position in relation to African, Middle Eastern and European markets will strengthen the country's case for becoming a strategic hub for pharmaceutical investment. To this same end, Egypt, Algeria and Tunisia in particular have been taking steps to enhance their competitiveness in the wider MENA region. This has manifested itself in the form of greater government commitment towards removing market access barriers for foreign drugmakers, which will gradually propel a more conducive environment for multinational drugmakers.

  • North Africa's Drug Markets Dwarfed By GCC
    MENA Sub-regions: Pharmaceutical Market Forecast (USDbn)
    Note: Blue line represents North Africa, red line represents the Middle East ; f = BMI forecast. Source: UN Comtrade, BMI

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