Drive to Increase Local Production of Drugs Presents Vast Opportunities for Ethiopian Pharmaceuticals
Government offers tax incentives to increase in-country production of medicines and improve healthcare, finds Frost & Sullivan
CAPE TOWN, South Africa, April 6, 2016 /PRNewswire/ -- The Government of Ethiopia is offering tax and loan incentives to encourage local pharmaceutical production that will ultimately reduce the cost of drugs, increase job opportunities, improve economic growth and enhance foreign exchange inflow. Ethiopia has previously relied heavily on pharmaceutical imports - or international manufacturers with a footprint in the country - to meet a growing consumer demand for medicine. As a result, several initiatives will be rolled out to improve the quality of healthcare in the country, owing to a large gap in the supply and demand of drugs.
"The Government has encouraged local pharmaceutical production with tax-free loans for up to five years and a 100 percent exemption on custom duty for imports on capital goods," said Frost & Sullivan Industry Analyst for Transformational Health, Aditi Bhalla. "Furthermore, an income tax exemption for five years is provided to manufacturers exporting 50 percent of their products, or supplying 75 percent of their products or services as production or services input. The time for production registration has also been reduced to a month for local manufacturers."
A new study from Frost & Sullivan, Analysis of the Ethiopian Pharmaceutical Market, finds that the market earned revenues of $620 million in 2015 and estimates this to reach $1.01 billion in 2020. The study covers prescription medicines and non-prescription, or over-the-counter (OTC), medicines. Prescription medicines are then further divided into generic and branded medicines.
For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/AFR_PR_SJames_MB49_24Feb16
Ethiopia has an increasing requirement of antibiotics, as well as anti-infective drugs, given the high incidences of communicable diseases in the country and an ever-growing population. This in turn is fueling the need for chronic care medication.
"In recent years, Ethiopia has increased its healthcare investments, resulting in a remarkable improvement in health indicators and achievement of health-related Millennium Development Goals," observed Bhalla. "By delivering a host of incentives, the Government is addressing the needs of citizens, as well as encouraging trade across borders to bring in foreign exchange."
In addition to rolling out programmes like the Growth and Transformational Plans (GTP-I, GTP-II) and Health Sector Development Plan, the Government has also partnered with the World Health Organisation. This collaboration has led to the launch of the National Strategy and Plan of Action for Pharmaceutical Manufacturing Development, which will urge domestic production and strengthen the national medicine regulatory system.
Analysis of the Ethiopian Pharmaceutical Market is part of the Life Sciences Growth Partnership Service program. Frost & Sullivan's related studies include: Healthcare System Development in Tanzania and Ethiopia, An Overview of the South African National Development Plan 2030 and the Industrial Policy Action Plan, Global Next-generation Sequencing Trends, and Pharmaceutical Industry in Ghana and Nigeria. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
Analysis of the Ethiopian Pharmaceutical Market
MB49-52
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact:
Samantha James
Corporate Communications – Africa
P: +27 21 680 3574
F: +27 21 680 3296
E: [email protected]
Share this article