Investment eyes 'middle class' African pharma demand
Wednesday, November 4, 2015
Subject
Outlook for pharmaceutical markets in sub-Saharan Africa.
Significance
Sub-Saharan Africa's (SSA) pharmaceutical industry -- - including patented drugs, generics, and over-the-counter medicines -- nearly quadrupled in size from 2003-13, growing from 4.7 billion dollars to 20.8 billion dollars. While African economic growth is expected to slow, bullish estimates suggest the pharmaceuticals sector could grow at around 9.8% annually to 2020 due to market reforms, corporate expansion and rising healthcare expenditure.
Impacts
- Rising mobile telecommunications coverage and specialist apps increase scope for remote health diagnosis.
- Some retailers may increase their capacity to offer 'over-the-counter' drugs online, where regulations allow.
- African governments hit by low commodity prices face healthcare funding pressures.
- The growth of private investment interest accelerates the shift away from donor-funded drug provision.