ASSESMENT OF CHALLENGES AND OPPORTUNITIES FOR PRODUCING PHARMACEUTICALS IN ETHIOPIA

Abstract

Local pharmaceutical production in developing countries like Ethiopia is an interest of many investors and government. This interest is mainly related to the fact that Ethiopia is a large populous country in Africa and its economy is growing continuously. The currently existing local manufacturers in Ethiopia are few in number and contributing little to the overall economy. This makes Ethiopia to be dependent on imported pharmaceuticals and even all local manufacturers are highly dependent on imported raw materials. This assessment tried to understand the strengths, weaknesses, opportunities and threats of the pharmaceutical industry in Ethiopia by reviewing relevant literatures and gathering primary data from key respondents. The assessment came up with interesting findings and recommendations like local pharmaceutical industries need to work collaboratively and centralize their procurement of raw materials to enjoy the benefits of getting good price for bulk purchase. Local manufacturers are also encouraged to improve their packaging and work to change the public perception towards local products. The government protections for local manufacturers need to be exercised very carefully so as not to compromise quality which will eventually affect their competitiveness in the global market. International proprietary agreements will force local manufacturers to focus on invention of new products to treat diseases specifically prevalent in developing countries. As invention of new products is capital and time intensive, joint ventures and partnership with multinational companies is the way forward for local manufacturers in developing countries.