What's holding back Africa's pharmaceutical manufacturing?

The pharmaceutical market in Africa is currently facing numerous challenges that are hindering the continent's ability to achieve its health security agenda. With over 70% of drugs imported into the continent and a pharmaceutical spend per capita six times less than the global average, there is a huge opportunity for growth and development in the industry. However, there are significant disparities across the African region, with North African countries representing a majority of total sales and East and West Africa forecasted to drive future growth. The African vaccine market is also expected to grow substantially in the coming years, presenting a significant opportunity for local manufacturers. To delve deeper into the challenges and potential solutions for Africa's pharmaceutical manufacturing industry, CNBC Africa spoke with Chimwemwe Chamdimba, the Head of Health at the African Union Development Agency, NEPAD. Chamdimba highlighted the importance of collaboration among African countries to identify strengths in the pharmaceutical manufacturing value chain and fill current gaps. She emphasized the crucial role of regulatory standards in ensuring the production of quality medical essentials that meet the health needs of Africans. One of the key issues discussed during the interview was the impact of the COVID-19 pandemic on Africa's access to essential medical products. Chamdimba noted that despite having resources to procure medical products, disruptions in the global supply chain and border closures limited African countries' access to necessary healthcare supplies. This challenge is not new and has been evident during previous health crises like the HIV/AIDS epidemic, prompting the need for a renewed commitment to local manufacturing of medical products. The interview also explored the importance of building sustainable capacity for pharmaceutical production across African countries. Chamdimba stressed the need for countries to collaborate and leverage their unique resources and materials to establish a viable pharmaceutical market on the continent. She drew parallels with the aerospace industry, where different countries specialize in specific components to collectively produce a successful product. This collaborative approach, coupled with strong regulatory standards, is essential for ensuring the safety and quality of locally manufactured medical products. Regulatory standards emerged as a key theme in the discussion, with Chamdimba highlighting the importance of stringent regulations to prevent the infiltration of substandard and counterfeit goods into the market. Strengthening regulatory systems, harmonizing standards, and ensuring that African-produced medical products meet global quality benchmarks are vital steps in building a trustworthy pharmaceutical industry in Africa. The African Union is actively working towards harmonizing regulations and enhancing the regulatory capacity across the continent to boost confidence in locally manufactured products. Finally, the conversation shifted towards the role of financing in driving the growth of Africa's pharmaceutical industry. Chamdimba emphasized the importance of guaranteeing a market for locally produced products to attract investments. With the African Continental Free Trade Area expanding the market and a growing middle class creating demand for pharmaceutical services, the continent is poised to attract investments that can support the growth of the industry. In conclusion, addressing the challenges facing Africa's pharmaceutical manufacturing industry requires a multi-faceted approach that involves collaboration, strong regulatory frameworks, and strategic financing. By leveraging the continent's diverse resources, harmonizing regulations, and attracting investments, Africa can revitalize its pharmaceutical manufacturing sector and enhance its health security agenda.