Africa remains heavily dependent on imports for finished medicines and raw inputs

• With AfCFTA as a unifying platform, Africa can move toward industrial sovereignty in healthcare-PAMA

 

The current state of production in Africa’s pharmaceutical landscape has indicated that Africa remains heavily dependent on imports for finished medicines and raw inputs.

The Pan-Africa Manufacturers Association (PAMA) October 2025 News Bulletin cited the Grandview Research, which disclosed that the Africa pharmaceutical market size was estimated at USD 27.65 billion in 2024 and is projected to reach USD 36.96 billion by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

It noted that due to the increasing prevalence of both communicable and non-communicable diseases, pharmaceutical demand is expanding rapidly across the continent.

According to Grandview Research, Africa’s pharmaceutical manufacturing landscape is heavily dependent on imports, with over 70% of medicines brought in from abroad, and half of the continent’s countries lacking any local production.

“Manufacturing is highly concentrated: just eight countries, half of them in North Africa, account for 85% of the continent’s 690 pharmaceutical facilities. Most of these facilities operate at only 30-60% of their capacity, significantly lower than the 70%+ typical in more developed economies. Several studies and policy reviews have also shown that the continent sources most of its generics and APIs from India and China, while many patented or branded medicines originate from the EU, the U.S. and Japan.

“Such import dependence has been visible during supply shocks such as the pandemic which exposed the fragility of global medicine supply chains and underscored Africa’s vulnerability when distant policies or trade frictions curtail flows,” the news bulletin stated.

It will be recalled that trade tensions deepened following President Trump’s latest social media announcement introducing a new wave of tariffs and declaring that a 100% duty will now apply to all branded or patented pharmaceutical products unless the producing company is actively constructing a manufacturing facility within the United States.

However, products from companies that have already commenced local production projects will be exempted from the new measure, among others.

The news bulletin emphasized that the new U.S. tariff regime on branded pharmaceutical products offers a valuable strategic lesson for African economies, adding that at its core, the policy demonstrates how a major economy can use trade policy as a lever to attract foreign direct investment (FDI) and build local manufacturing capacity.

“One of the core lessons from the U.S. pharmaceutical tariff move is that America is not merely protecting its domestic market, it is deliberately using trade policy as a tool to redirect global investment flows into its manufacturing sector. U.S conditioning tariff exemptions on local production, is indirectly compelling foreign pharmaceutical companies to establish factories, create jobs, and transfer technology within its borders.

“By imposing a 100% tariff on imported branded drugs, except for companies already constructing plants in the U.S. — Washington is essentially telling global pharmaceutical giants: “If you want to access our vast consumer market, you must produce here.” This approach blends protectionism with industrial strategy, ensuring that market access translates into tangible local economic value.

“For Africa, the takeaway is profound. Africa’s policymakers must therefore rethink trade from this perspective, not as passive participants in global commerce, but as architects of investment flows,” it stated.

According to PAMA, going forward African governments should prioritize fast tracking regional pharmaceutical hubs between countries like; Nigeria, South Africa, Egypt, Kenya, and Ghana) with coordinated incentives like; plug-and-play industrial plots, dedicated utilities, tax breaks for plant investment, and fast-track regulatory approval pathways, adding “these hubs would aim to supply the African market and, where feasible, adjacent regions.”

African governments it emphasizes should leverage public procurement preferences to compel multinationals to establish production facilities on the continent similar to how the U.S. is using its new tariff policy to attract pharmaceutical investments domestically.

PAMA added, “African governments should come up with industrial strategies that would prioritize R&D in oncology, cardiovascular, and metabolic disease therapies, while also supporting nutraceuticals, vitamins, and herbal product development and areas where Africa can build a comparative advantage.

“Governments should adopt continent-wide digital verification systems, invest in Regional Drug Regulatory Authorities (RDRAs), and strengthen cross-border enforcement under AfCFTA’s Protocol on Trade in Goods in the pharmaceutical sector of Africa’s manufacturing industry.

“There is no doubt, that with AfCFTA as a unifying platform, Africa can move toward industrial sovereignty in healthcare, reduce vulnerability to global supply shocks, and ensure that future pandemics find the continent better prepared and self-reliant.”