Pharmaceutical Demand Pattern in Africa

Africa’s pharmaceutical market is expanding across every sector. During 2017 and 2025, the generic drugs segments are anticipated to grow at a compound annual growth rate (CAGR) of 9.1%, prescription drugs at 6.6% and over-the-counter (OTC) medicines at 5.9%. As per our analysis, Africa total pharmaceutical market is valued at USD 5.52 billion in 2017, which is anticipated to reach a market size of USD 9.48 billion by the end of 2025.

Lack of Effective Penetration of Healthcare System

The present scenario of Africa healthcare industry is still lacks the effective penetration of healthcare system and thus opens up opportunities to the both global & local players set their foot in Africa. Despite the government & global organizations efforts done over the past decade, nearly 2 million Africans still have limited or no access to most essential medicines. Around 73% of HIV/AIDS treatment drugs supplied across Africa is still under the monopoly of top pharmaceutical companies from across the world and 75% of Africans still do not have access to medical treatment. Therefore, there are high number of cases of tuberculosis, AIDS and malaria which are responsible for more than 6 million people deaths on the continent each year. Hence, multiple solutions are brought forward by the concerned authorities and the most effective possible solution would be the production & supply of generic drugs which are 70–90% cheaper for the Africans to afford than the brand name drugs.

Source: Goldstein Research

The continent accounts for 14% of global population but it has only 3% production of world medicines. Africa pharmaceutical manufacturing sector contributes only 25% — 30% of total needs. Moreover the life-saving drugs production is even more concentrated in only a few African countries i.e. 70% of pharmaceutical manufacturing is in South Africa and the remaining in Ghana, Nigeria and Kenya. Further, of the total supply of drugs in Africa, more than 85% is imported and Senegal imports 80% of these medicines. Major imports of generic drugs are directed from India. Although they are cheap but still the high transportation cost adds up the price of drugs that reaches to end consumer, which makes it difficult to provide effective healthcare system & treatment. Thus in present scenario, no African country, irrespective of their its size and level of economic development is entirely self sufficient for pharmaceuticals.

This is an edited extract from “Africa Pharmaceutical Market Outlook 2025: Growth & Opportunity Analysis” a study undertaken by Goldstein Research. The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. A systematic approach in order to estimate and project the market sizing has been followed keeping in mind all the on-going and upcoming trends of the market. For more, visit: https://bit.ly/3c5oJgH

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