With the aims to boost the market share of local pharmaceutical manufacturing and make essential medicines affordable, Ethiopian government with assistance of the World Health Organization (WHO) reveals a ten years strategic document and action plan.
Currently Ethiopia’s pharmaceuticals market is estimated to reach around half a billion dollars. The new strategy of the country, which is revealed this morning, aims to increase the share of local manufacturing from 20% to 50% and make essential medicines affordable to the public at large.
“We are not interested in supporting local pharmaceutical industries if local people and local population continue to suffer and die because of lack of access to essential medicines,” said, Dr. Zafar Mirza, Coordinator, public health innovation and intellectual rights at WHO.
Local production of generic medicines promises affordability, accessibility and availability of needed drugs, employment opportunities and overall public health benefits, according to Dr. Janet Byaruhanga, representative of African Union, who made remarks at the meeting opened this morning to discuss about the new strategy.
“Though the pharmaceutical sector was identified by the government as one of the eight priority sectors, we had no comprehensive strategy like this one,” said Dr. Kebede Worku, State Minister of Health of Ethiopia, in his opening statement of the meeting.
There are around nine local pharmaceutical manufacturers in the country, out of which only three have WHO’s Good Manufacturing Practice (GMP), which allow them to export their products and participate in government tenders financed by donors. In addition some 200 importers of pharmaceuticals products and medical consumables are also operating in the country.
Poor Export
The strategy aims to make essential drugs affordable for local people while at the same time creating jobs and cutting the over $300 million dollars hard currency every year, which the country invests for importing pharmaceutical products and drugs.
Even though the country has planned to produce locally and export worth $20 million pharmaceutical products from 2010 – 2015, it only attains 10% of its target. The local products cover only 20% of the total local market.
The ten years strategic plan includes a set of actions to be undertaken in the coming five years. The strategy now envisages export of $30 million five years after and $80 million by 2015.
Dr. Mebrhatu Meles, Ethiopia’s State Minister of Industry thinks that the targets are attainable with additional incentives and special focuses to the sector. “However, much more is still to be done in order to achieve these targets,” he says.
“As the pharmaceuticals industry operates under complex internal and external requirements, the [strategic] document is believed to encompass, among other things, issues such as human resource development, regulatory infrastructure, quality standards, WHO’s Good Manufacturing Practices (GMP), supply chain, research and development, technology transfer pharmaceutical data and information and financing,” he said.
Building the ship while sailing
“Ethiopia has one of the most generous incentives for the pharmaceuticals sector,” Dr. Skhumbuzon Ngozwana from WHO, who is also one of the consultants engaged in preparation of the strategic plan.
The major challenges of the sector include skills, human resources, and technical and know how, according Dr. Ngozwana.
Under Ethiopia’s second Growth and Transformation Plan (GTP II) – 2015-2020, the country envisages to raise the share of domestic pharmaceuticals industry market to 50%, increase the export earnings to $110 million and create jobs close to 7,000 people.
Creation of windows of opportunity such as through incentive packages and protection of local manufacturers are crucial, according to Dr. Skhumbuzon, who also suggested more incentives for companies to invest in the pharmaceutical sector of Ethiopia.
Speaking on the multiple challenges the sector has faced, “Ethiopia is building the ship as it sails”, said Prof. Tsige Gebre Mariam, one of the consultants of WHO.
[NewBusinessEthiopia]