On World Health Day, April 7, global health and development leaders turned the spotlight on a critical issue, Africa’s heavy dependence on imported medicines.
At the 3rd World Local Production Forum, organized by the World Health Organization, local drug manufacturing is no longer just an option, but a public health and economic necessity.
Right now, Africa imports over 70% of its medicines, and nearly half of its countries have little or no pharmaceutical production capacity.
Despite growing demand and need, the continent captures just about 5% of global greenfield foreign direct investment (FDI) in pharmaceutical manufacturing.
To help shift this narrative, UN Trade and Development (UNCTAD) released fresh analysis showing how better investment policies, including the use of special economic zones (SEZs), can unlock the potential of local pharmaceutical production.
The goal is to improve public health outcomes, secure supply chains, and stimulate economic growth.
“This is about putting investment at the service of development,” said Nan Li Collins, director of investment and enterprise at UN Trade and Development.
“Local pharmaceutical production can save lives and strengthen economies, but only if the right conditions are in place. That’s where UNCTAD can help.”
Africa’s pharmaceutical market is growing fast, fueled by a rising population and shifting health needs.
Some signs are promising, a study revealed that basic medicines like tablets, capsules, and creams produced in Ethiopia and Nigeria could cost 15% less than imported versions from India.
But most African facilities are still underused, operating at just 30% to 60% of their capacity.
In contrast, facilities in more developed regions average over 70%.
The manufacturing base is also highly concentrated.
Just eight countries, half of them in North Africa, house 85% of the continent’s 690 pharmaceutical plants.
To tackle this uneven development, UNCTAD laid out a comprehensive framework to guide policymakers.
It includes evaluating strategic impact, removing investment barriers, and crafting smart incentives to encourage local production.
The recommendations stem from the agency’s in-depth work, including a four-year project with the East African Community focused on antibiotic production.
Another report from UNCTAD, “Attracting pharmaceutical manufacturing to Africa’s special economic zones,” highlights how SEZs could play a big role.
These zones cluster infrastructure, investment, and services in one location, making it easier for companies to grow, cut production costs, and improve quality.
The agency also stressed that policy responses must be tailored to individual countries.
More advanced pharmaceutical hubs can focus on scaling and attracting FDI, while those still building their industries may need to fix regulatory gaps and improve infrastructure.
To help countries compete and collaborate better, UNCTAD calls for stronger investment promotion and facilitation.
These efforts, the agency notes, can support technology transfer, improve access to capital, and better connect Africa to global pharmaceutical value chains.
Regional integration is another key priority, especially harmonizing regulations, pooling procurement, and coordinating investment efforts to reduce market fragmentation.
“Local production isn’t just about health, it’s also about economic development and strategic resilience,” said Bruno Casella, a senior economist at UNCTAD and lead author of both reports.
“These reports help governments design policies that align investment with these broader goals.”
