EGYPT— The Egyptian Customs Authority (ECA) has announced a plan to exempt certain imported raw materials used in the pharmaceutical industry from the value-added tax.
This decision follows a consultative meeting held by Prime Minister Moustafa Madbouly with stakeholders in the pharmaceutical industry.
Attending the meeting were Dr. Muhammad Muait, Minister of Finance; Engineer Ahmed Samir, Minister of Trade and Industry; Dr. Muhammad Awad Taj Al-Din, Advisor to the President of the Republic for Health and Prevention.
Dr. Baha’u Al-Din Zeidan, President of the Egyptian Authority for Unified Purchasing, Aid, Medical Supply, and Medical Technology Management also graced the event.
Also present were Dr. Tamer Essam, President of the Egyptian Medical Authority; Mohammed Abu Musa, First Undersecretary of the Central Bank; Dr. Walid Anwar, General Secretary of the Supreme Council for University Hospitals; and Dr. Jamal Al-Thy.
Representing the pharmaceutical industry’s interests was the President of the Chamber of Pharmaceutical Industry at the Federation of Industries, accompanied by Dr. Majid George, President of the Export Council for the Medical and Pharmaceutical Industries.
During the meeting, Prime Minister Mustafa Madbouly affirmed the availability of medicines, medical equipment, and secure reserves in the country.
He emphasized the importance of regular monitoring of the supply of raw materials and medical supplies for pharmaceutical factories in Egypt, as well as the need for safe storage to ensure enough for the medical sector’s requirements.
The Prime Minister highlighted that it was an opportune time to focus on localizing and strengthening the manufacturing industry for medicines, and the government was willing to provide incentives to facilitate the sector.
The President of the Chamber of Pharmaceutical Industry reiterated the essential needs of the medical sector in terms of raw materials and pharmaceutical supplies for the coming months.
Meeting these needs would contribute to providing safe and effective medicine for citizens and support the economies of companies operating in this crucial sector.
The head of the Egyptian Pharmaceutical Authority confirmed ongoing coordination with central bank officials to secure the necessary funding for pharmaceutical materials.
The representative from the Central Bank emphasized that the supply of raw materials and medical supplies was a top strategic priority, providing details of the dollar funding available for the sector.
The head of the Export Council for the Medical and Pharmaceutical Industries underscored the importance of funding to ensure the availability of pharmaceutical materials, particularly considering the interest in enhancing local manufacturing.
The Minister of Health and Prevention noted that Egypt had approximately 177 drug manufacturing companies and emphasized the importance of coordination and cooperation among these companies to diversify their drug products.
He expressed confidence that this could be successfully implemented and would yield significant results.
Egypt’s pharma manufacturing landscape
According to the Egypt Pharmaceutical and Healthcare report by Fitch Solutions, Egypt remains a highly challenging pharmaceutical market for innovative drugmakers.
As a result, the low per capita medicine expenditure and persistent market access barriers have led to a score of 38.6 out of 100 in Fitch Solutions’ Innovative Pharmaceuticals Risk/Reward Index.
Unfortunately, although there is political will to develop the healthcare sector, restrictive market access barriers continue to pose a major obstacle for innovative drugmakers.
Despite these challenges, Egypt maintains its position as the largest producer and consumer of pharmaceuticals in the entire Middle East and Africa region, with pharmaceutical sales reaching a market value of US$2.9 billion in 2022, according to GlobalData.
Furthermore, the Egyptian pharmaceutical market is projected to reach a size of US$3.0 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of over 7% during the period of 2022 to 2027.
In line with Egypt’s commitment to pharmaceutical self-sufficiency, President Sisi inaugurated Gypto Pharma City, which is hailed as the largest facility of its kind in the region.
It encompasses production, administration, industrial services, and networks. The Egyptian government envisions Gypto Pharma City as a regional hub for the international pharmaceutical and vaccine industries.
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