Presentation by Nazeem Mohamed, Federation of East African Pharmaceutical Manufacturers made at the Euro-Africa Health Investment Conference, March 26 - 27, 2013, London, United Kingdom.

1. East African Pharmaceutical Sector:
Opportunities and Challenges
Nazeem Mohamed
Director, Federation of East African Pharmaceutical
Manufacturers (FEAPM)
C.E.O Kampala Pharmaceutical Industries (1996) Ltd

2. Africa: The Healthcare Dilemma
11% of the World’s
Population
24% of the World’s
Disease Burden
Less than 1% of
the World’s Health
Expenditure

3. Pharma Market Drivers

4. Therapy Area Attractiveness

5. EAC: Estimated Market Size
US $ Millions
Public
Private
Market size
Uganda
220
102
322
Kenya
322
486
804
Tanzania
338
145
483
880
733
1,609
• Estimates based on available average monthly consumption data MoH
and Pharma associations
• UG and TZ public sector relatively higher due to substantial donor funding
for Malaria and HIV/AIDS

6. EAC Pharma Manufacturing Summary
• 35 active manufacturers but only 2 with WHO cGMP
approval
• Primarily Compounding and Formulation of most
dosage forms including infusions
• Production from imported API’s and other raw
materials
• Focus on WHO list of essential medicines
• Well regulated (NDA, PPB, TFDA)
• Trade is mostly intra-East Africa

7. EAC Political landscape: Supportive
• Ongoing support to strengthen
regulatory institutions and
harmonize regulation (EAC-MRH)
• Increasing political support for local
pharmaceutical manufacturing
• All Partner States have medicines
policies, legislations and
regulations in place

8. E.A. Pharmaceutical Market SWOT analysis
Strengths
•Population 130 M and growing middle class
•Functioning policy and regulatory
frameworks (in varying degrees across EAC
partner states)
•Relative economic and political stability
•Higher returns than in the West
Opportunities
•Large unmet need and growth of
chronic diseases (double disease
burden)
•New models of care being designed
(e.g. PPP)
•No dominant players!!
•TRIPS flexibilities
Weaknesses
• High cost of operations e.g. finance,
utilities, infrastructure
•All API’s imported
•Skill Gap
•Unfair competition
•Unable to access donor funds
Threats
•Lack of market data!
•Negative perceptions of locally
manufactured products
•Cheap imports

9. Tips for Investing in East-Africa
• Understand the market structure
(informal and formal)
• Take a longer term view
– Operational challenges
– Learning curve
• Work with a local partner
– Need to be close to the action
– Invest in local talent
• Understand the needs of the
Government
• Develop relationships!