Manufacturing - The Result

The Result  

There are around nine local pharmaceutical manufacturers in the country, out of which only three have WHO’s Good Manufacturing Practice (GMP), which allow them to export their products and participate in government tenders financed by donors.

Pharmaceutical industry performance report shows that most the manufacturers in the country have been operating below their capacities due to several problems, and supply only around above 20% of the market.

At the same time the variety of products by the local pharmaceutical manufacturers is also limited. They have been producing only 90 of the more than 380 products on the national essential medicines list.

In 2014, local pharmaceutical companies supplied products to the value of close to $44.23 million. In addition to the absence of national strategic and action plan, the Ethiopian pharmaceutical industry has been facing significant challenges such as human resource capacity constraints, limited access to foreign currency and raw material procurement difficulties.

With all the supports extended to the sector and ambitious targets set for the sector, the performance of local manufacturing of medicines was insignificant. Even though the country has planned to producelocally and export worth $20 million pharmaceutical products from 2010 – 2015, it only attains 10% of its target. The local products cover only 20% of the total local market.

The strategy now envisages export of $30 million five years after and $80 million by 2015. It aims to make essential drugs affordable for local people while at the same time creating jobs and cutting the over $300 million dollars hard currency every year, which the country invests for importing pharmaceutical products and drugs

During Ethiopia’s 2nd round Growth and Transformation Plan (GTP II) – 2015-2020, the country envisages to raise the share of domestic pharmaceuticals industry market to 50% and create jobs to close to 7,000 people.

The major manufacturing activities are in the production of food, beverages, tobacco, textiles and garments, leather goods, paper, metallic and non-metallic mineral products, cement and chemicals. Under Growth and Transformation Plan (2010/11 – 2014/15) of the country, production of textile and garments, leather products, cement industry, metal and engineering, chemical, pharmaceuticals and agro-processing are priority areas for investment. Thus there are ample manufacturing opportunities for prospective investors in the following areas:

  1. Textiles and clothing: spinning, weaving and finishing of textile fabrics from the beginning and the production of garments; manufacture of knitted and crocheted fabrics, carpets, sport wears, etc.
  2. Food and beverage products: processing of meat and meat products, fish and fish products, and fruits and vegetables; integrated production and processing of dairy products; processing of animal feed and processing and bottling of mineral water; sugar production; brewing and wine-making, processing of pulses, oil seeds of cereals, manufacture of macaroni/pasta etc;
  3. Tannery and leather goods: tanning of hides and skins up to finished level; manufacture of luggage items, handbags, saddle and harness items, footwear and garments, and integrated tanning and manufacturing;
  4. Glass and ceramic: tableware and sanitary ware, sheet glass and containers;
  5. Chemicals and chemical products: manufacture of basic chemicals (including ethanol) based on local raw materials, including fertilizer and nitrogen, soda ash, rubber PVC granules from ethyl alcohol; manufacture of caustic soda and chlorine-based chemicals; carbon and activated carbon; precipitated calcium carbonate; ballpoint ink, varnishes; soap and detergent, cleaning and polishing preparations, perfume and toilet preparation and pesticides, herbicides or fungicides;
  6. Drugs and pharmaceuticals: manufacture of pharmaceutical, medicinal, chemical and botanical products in the form of tablets, capsules, syrups and injectables;
  7. Paper and paper products: pulp from indigenous raw materials, paper and paper products;
  8. Plastic products: high-pressure pipes, pipe fittings, shower hoods, wash basins, insulating fittings, light fittings, office and school supplies, and fittings for furniture;
  9. Building materials: manufacture of lime, gypsum, marble, granite, limestone, ceramics, tubes, pipes and fittings.