ETHIOPIA — Ethiopia’s pharmaceutical sector is experiencing significant advancements through the efforts of the Industrial Parks Development Corporation (IPDC), which has recently signed agreements with five local companies, amounting to an impressive investment of over 3 billion birrs (approximately US$55 million).
These agreements signify a crucial milestone in the government’s vision to expand medication coverage in the country and reduce reliance on foreign imports within the pharmaceutical industry.
Akilulu Tadese, the CEO of IPDC, stressed the importance of domestic companies’ involvement in the pharmaceutical sector, highlighting that it not only strengthens Ethiopia’s medication coverage but also conserves foreign currency typically spent on imported medicines.
By promoting local production and supply, these investments hold the potential to significantly diminish the nation’s dependence on pharmaceutical imports.
Upon commencing operations, the focus of these companies will be to manufacture a diverse range of medicines and medical supplies tailored to the local market.
This development is expected to have a profound impact on healthcare accessibility and affordability for Ethiopian citizens.
Additionally, the establishment of these pharmaceutical companies will generate both permanent and temporary employment opportunities for over 1,500 individuals, further contributing to the growth of the domestic workforce.
In another noteworthy achievement, IPDC has also entered into an agreement with ten local companies, collectively investing over 8.2 billion birrs (approximately US$146.5 million) in various industrial parks.
Once these companies commence production, they are projected to create job opportunities for more than 7,000 citizens.
This reflects the government’s broader efforts to stimulate economic growth, attract investments, and foster job creation across multiple industries.
Among the industrial parks, Kilinto Industrial Park stands out as a modern investment center with a specific focus on the pharmaceutical sector.
Equipped with state-of-the-art infrastructure and facilities, Kilinto Industrial Park is ideally positioned to accommodate and support pharmaceutical companies in their operations.
This strategic concentration further solidifies Ethiopia’s commitment to developing a robust pharmaceutical industry capable of meeting the growing healthcare needs of its population.
These investments in Ethiopia’s pharmaceutical sector, facilitated by IPDC, form part of a larger initiative aimed at enhancing the nation’s self-sufficiency in healthcare and reducing its reliance on imported medicines.
With the support of local companies and the conducive environment provided by industrial parks like Kilinto, Ethiopia is striving to establish a thriving pharmaceutical sector that contributes to both economic growth and improved healthcare outcomes for its citizens.
The potential for manufacturing certain pharmaceutical products within Ethiopia is evident, considering that the current market is predominantly dependent on imports, as indicated by a study conducted by Manufacturing Africa.
The domestic pharmaceutical market in Ethiopia is projected to surpass US$1 billion by 2025, driven by a growing middle-income population and urbanization, which leads to improved healthcare access facilitated by better infrastructure and healthcare capacities in cities.
Imports currently account for 65% to 75% of the Ethiopian pharmaceutical market, with India (22%), the Netherlands (20%), and Belgium (13%) serving as the primary sources.
Finished pharmaceutical products constitute the majority of imports, representing around 80% of all pharmaceutical products imported in 2019.
Key imported products include anti-infectives (60%), central nervous system medicines (9%), water and acid-base electrolytes (8%), and endocrine disorder and contraceptives (5%).
The Ethiopian Pharmaceutical Supply Agency (EPSA) plays a significant role as the single most powerful buyer in the country, with approximately 60% of the total pharmaceutical spending in Ethiopia allocated to the public and social sectors.
Notably, antivirals and antibacterials are among the key products procured by the public and social sectors.
Currently, Ethiopia has only 11 manufacturers in the pharmaceutical sector, with 45% of them being jointly owned by international and local investors.
China is emerging as a notable player in the Ethiopian pharma sector.
For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.
