Industry Trend Analysis - Increasing Government Support To Benefit Domestic Industry - MAY 2016
BMI View : Increasing interest from foreign investors and further government support will boost the capacity of Ethiopia's domestic pharmaceutical industry over the long-term. The government's 10-year plans are yielding positive results in achieving self-sufficiency; however , we uphold our view that many of their targets are overly ambitious. Despite improvements to the country's domestic capabilities and export growth, Ethiopia will remain reliant on importing the majority of its pharmaceuticals.
Ethiopia's domestic pharmaceutical industry will be given a boost following on from the announcement in January 2016 that Addis Pharmaceutical Factory (APF) - Ethiopia's largest pharmaceutical manufacturing company - signed a USD30mn (XAF638mn) agreement with 54 Capital - a UK-based private equity firm. The agreement includes plans to build a new manufacturing facility for the Ethiopian company, as well as increase existing capacity through commencing production of injectable treatments and therapeutic medicines. As such, ADF plans to increase its portfolio of products from 90 to 150 over the coming years. This development falls in line with the Ethiopian government's long-term plan of becoming self-sufficient in terms of medicine production. Ethiopia's government is aiming to make the country's pharmaceutical manufacturing sector fully Good Manufacturing Practices (GMP) compliant by 2025, though as it stands, only two companies are currently GMP-certified. These plans were outlined in the government's Pharmaceutical Manufacturing Sector Strategy and Action Plan (2015-2015) published in July 2015.
Domestic Pharmaceutical Industry