The Government of Ethiopia is actively working on a Public-Private Partnership to tap into and make optimal use of available resources for healthcare and promote quality improvements on the part of the private sector.
The major priority areas of the healthcare sector development program are maternal and newborn care, child health, and to halt and reverse the spread of major non communicable and communicable disease such as HIV/AIDS, TB, and Malaria are the key drivers of pharmaceutical demand in Ethiopia. However, there is increasing focus on other communicable and non-communicable diseases such as cancer, heart diseases, high-blood pressure, diabetes, and others as well.
Local investing Partner and General Manager at Africure Pharmaceuticals Ethiopia Ltd Dr. Tadesse Mekonin said that the development of the Ethiopian local pharmaceuticals manufacturing sub-sector has been very much limited in terms of production capacity, technology acquisition, creation of employment opportunity and investment. Most of the local manufacturers are not compliant with international good manufacturing practice (GMP).
Ethiopian investment climate is very conducive with the support of incentives given by the Ethiopian investment commission. The commission is playing vital role from providing serviced land, producing medicines only from local manufacturing plant products, avoiding reducing import duty and income tax, price preference and others make conducive climate for investment in Ethiopia.
As to him out of total consumption only 3 percent of medicines are produced locally across Africa while the remaining were imported. This year the Ethiopian pharmaceutical market is expected to reach $USD1 billion and the African market is expected to be $USD 52 billion this year. Because of this the market potential is open.
Increase in population size will result in an increase in the number of individuals requiring pharmaceutical products. With the growing population of the country the local pharmaceutical market is growing at an annual rate of around 25 percent.
The share of the domestic pharmaceutical market held by locally produced medicines is less than three percent and the rest is filled by importation. Government is increasing healthcare coverage to its large rural population, thus promoting the need for increased access to pharmaceutical products and the project is expected to reduce shortage of medicines, reduce import cost, create job for local citizens.
Africure PLC is set to build the first ever pharmaceutical industrial park in Qilinto Industrial Park in Ethiopia as a joint venture with local investor. Total capital of USD 10 million is allocated for the construction of the company and the company will be operational over the next 18 months. Africure pharmaceutical manufacturing when fully operational the manufacturing company has annual capacity of producing over one billion tablets and capsules and 14 million bottles of syrup. Up on completion the company is planned to export its products to over ten countries in Africa.
The country is consistently investing in its health sector. Strengthening the pharmaceutical is crucial to protect the safety of this huge people. Apart from this manufacturing sector important beyond producing essential medicines both for local and foreign this helps to drive by eliminating import cost.
He said that Africure Pharmaceuticals Manufacturing Ethiopia PLC is duly incorporated company in Ethiopia as a joint venture between local and foreign investors. The company will be established to produce oral solid and liquid dosage formulations of essential medicines.
Beside access to most needed essential medicine in the country it will also significantly contribute to heavy import substitution on medicines and create job opportunities to local citizens. The company will strive to secure WHO good manufacturing practice approval in a few a years of being operational and export fully finished products to various countries in the continent. This will generate foreign currency to the country thereby contributing to the vision of the Ethiopian government to making Ethiopia a pharmaceutical export hub in Africa.
Speaking at the occasion, State Minister of Ministry of Health (MoH), Dr. Munir Kassa said that more than 97 percent of medicines used across the continent is imported and only about 3 percent are produced locally, hence there is a need to boost local production.
“In Ethiopia close to 37 percent of death is caused by NCDs. On the other hand products produced with the standard of good manufacturing practice of WHO standard is essential for the safety of the people and the company will produce products with WHO standard” he said.
He urged Africure Pharmaceuticals not to be only interested in production but also invest in research. He said the project will not only contribute to the creation of employment but also in the transfer of technology.
The CEO of Africure Pharmaceuticals S.B. Noronha said the company is based in the Mauritius Island but with branches in Mozambique, Namibia, Botswana, Cameroon and today Ethiopia. He said the factory in Ethiopia will produce quality medicines by Ethiopians, for Ethiopians and will produce medicine for Africa while maintaining the highest standards for manufacturing.
Located at Qilinto IP, the pharmaceutical plant will employ 109 persons out of which 95 percent are Ethiopians.
The Ethiopian Herald February 15/2020
BY HAILE DEMEKE
