Analysis of West Africa Pharmaceutical Industry
Africa, the second largest and populous continent of the world, accounting for 20% of the landmass, has an abundance of flora and fauna in its basket. Because of the huge forest cover as well as free flowing river water, there is a huge potency for numerous diseases which can be caused due to insect vectors or infectious plant spores etc. This makes Africa vulnerable to disease and the people residing here always need to be ready to fight back diseases.
As civilization progressed, there has been a shift in the demand for a prescription drug which paved the way for the Pharmaceutical Industry in Africa.
African Market for Pharmaceutical Companies
The tropical climate of Africa gives rise to plenty of diseases like TB, Malaria, Cholera, Polio, Meningitis, Typhoid, AIDS, Influenza, Yellow fever, etc. According to a report by the WHO, there will be an increase in non infectious diseases as well as lifestyle diseases by 21% until 2030. The practice of allopathic medicine certainly possesses the ability to provide relief. This implies a higher degree of opportunities for any Pharmaceutical company to explore.
There is a limited population in Africa who has the access to afford the essential drugs. Almost 50% of the people can't afford them. With the support of UNICEF and local government constant eye for better healthcare facilities in the country, there has been little progress in the current scenario. The largest pharmacy chains can be observed near Nigeria, Ghana.
Current and Future Trend Analysis
According to a report compiled by UNIDO (United Nation Industrial Development Organization), the African Pharmaceutical market was stable at the US $ 19.9 billion and was predicted to grow by 26% until 2021. This trend was an eye opening for multiple MNCs who wished to explore the market and be the pioneer of Pharma. Many countries in West Africa are yet in a developing state, their government lacked funds so the companies to set up a local plant would avail the benefit of subsidy plus the plant could increase the chances of employment. Pondering at the dual benefits the African government started investing the funds, relaxing the laws of ease of doing business, promotion of health campaigns, etc. which could strengthen the situation of prevailing healthcare facilities.
Another report from McKinsey has produced the data that proves that there is nearly five times growth in African Pharmaceutical Market in a decade's time. The market which was loitering at $ 4 billion in 2003 and it straightaway jumped off to $ 20 billion market in 2013. Calculations based on this projection they estimated this market to grow by $ 60 billion by 2020 with all time high selling of prescription drugs and generic medicines.
Concluding Line
The pharmaceutical market in West Africa, one decade earlier, was in the initial stage of growth but today it is in the acceleration phase. Low investment cost, better returns and a vast potential market all are favorable for the flourishment of a company irrespective of its industry. The African market is a promising market for the Pharmaceutical industry.