Industry Trend Analysis - Pharmaceutical Imports Will Continue To Dominate - NOV 2017

BMI View : As the largest and most developed pharmaceuticals market in Sub-Saharan Africa, South Africa continues to present a highly dynamic pharmaceutical trade environment. Supported by multinational investment and the government ' s ambitions to raise domestic drugmaker standards, South Africa is well positioned to exploit the surrounding highly import-dependent African markets. Despite this, imports will remain necessary for those medicines at the innovative end of pharmaceuticals, shaping opportunities for multinational pharmaceutical companies.

South Africa's local pharmaceutical industry is more developed in terms of local drugmakers' manufacturing capabilities when compared with other Sub-Saharan African (SSA) drugmakers, and to this end have become increasingly more competitive in terms of medicine production. This is bolstered by the fact that several multinational drugmakers choose to manufacture medicines locally in South Africa, designating the market as their production hub for SSA. Highlighting this, South Africa is one of few SSA markets that meets Good Manufacturing Practices (GMP) of the WHO, particularly in the Southern African Development Community (SADC). Nevertheless, country is still heavily reliant on imported products, particularly with regards to the more advanced pharmaceuticals, which makes for a dynamic pharmaceutical landscape.

Imports Will Continue To Dominate

Sub-Saharan Africa Dominates Export Destinations
South Africa: Pharmaceutical Exports By Value (LHS, USDbn); And Imports (RHS, USDbn) In 2016
Source: TradeMap, BMI

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