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UNITEDNATIONSCONFERENCEONTRADEANDDEVELOPMENT

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Policyreview

Buildingthecase

forinvestmentin

localpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

Geneva,2025

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BuildingthecaseforinvestmentinlocalpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

Acknowledgements

ThisreportwaspreparedbyateamatUNCTADledbyBrunoCasellaundertheguidanceofRichardBolwijnandtheoveralldirectionofNanLi,DirectoroftheInvestmentandEnterpriseDivisionatUNCTAD.

Thereportbenefitedfromadvice,commentsandinputsprovidedbyKiyoshiAdachi,ErmiasBiadgleng,StephaniaBonilla,JulienBornon,HamedEl-Kady,SimonaMarinescu,MassimoMeloni,IanRichards,AmeliaSantos-Paulino,AstritSulstarovaandArletteVerploeghatUNCTADDivisiononInvestmentandEnterprise.TheteamalsoreceivedvaluablefeedbackfromUNCTADcolleaguesfromotherdivisions,includingStephanieGarryandAnidaYupariAguado.ResearchassistancewasprovidedbyPrachiSharma.

UNCTADgratefullyacknowledgestheextensivecontributionsofRoryHorner(UniversityofManchester),aswellasthehelpfulcommentsandfeedbackprovidedbyGeoffreyBanda(UniversityofEdinburgh),NazeemMohammed(internationalpharmaceuticalconsultant),AndrésRodríguez-Pose(LondonSchoolofEconomics),WesleyRonoh(AfricaCDC)andAlastairWest(internationalpharmaceuticalconsultant).

UNCTADextendsitsappreciationtoJicuiDong,HeadoftheLocalProductionandAssistanceUnitattheWorldHealthOrganization,forvaluablediscussions,includinginthecontextoftheWorldLocalProductionForum2023inTheHagueandoftheUNCTADWorldInvestmentForum2023inAbuDhabi.

Thereportwasenrichedbyin-depthdiscussionsheldduringtwodedicatedeventsattheUNCTADWorldInvestmentForuminOctober2023,“InvestmentinHealth”and“InvestinginVaccineSupplyChainResilienceandLocalProduction”.Theseeventsbroughttogetheradistinguishedgroupofpanellists,includingGhadaAbuzaid,NadeemAlduaij,AhmedAlKhazraji,NibalDahaba,JicuiDong,RogérioGaspar,RanaHajjeh,VanessaHuang,QutaibaAlManaseer,MatthewsMmopi,AbdulMuktadir,OrhanOsmansoyandTesfachewTaffere.

UNCTADfurtheracknowledgesthevaluableinsightsgainedfrommeetingswithkeystakeholdersduringthefour-yearUNCTAD–EastAfricanCommunity(EAC)project,“InvestmentIncentivesforLocalProductionofEssentialAntibioticsinEastAfrica”.ContributionswereprovidedbyrepresentativesofallEACMemberStates,theEACSecretariat,theWorldHealthOrganization,theUnitedNationsEconomicCommissionforAfricaandcivilsocietyorganizations,suchastheGlobalAntibioticResearchandDevelopmentPartnershipandReAct–ActiononAntibioticResistance,aswellasthepharmaceuticalindustryincountriesoftheregion.

ParticipantsintheAfricanSpecialEconomicZonesAnnualMeeting,heldinNairobi(November2024),providedhelpfulinsightsontheroleofsuchzonesinsupportinglocalproductionofmedicinesinAfrica.

ThemanuscriptwaseditedbyLiseLingo.CoverdesignanddesktoppublishingwereundertakenbytheUNCTADCommunicationandExternalRelationsSection.ProductionofthereportwassupportedbyElisabethMareschal.

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BuildingthecaseforinvestmentinlocalpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

Abbreviations

AfCFTA

AfricanContinentalFreeTradeArea

AfDB

AfricanDevelopmentBank

AMR

antimicrobialresistance

AMRH

AfricanMedicinesRegulatoryHarmonization

API

activepharmaceuticalingredient

EAC

EastAfricanCommunity

FDI

foreigndirectinvestment

GDP

grossdomesticproduct

GMP

goodmanufacturingpractices

GVC

globalvaluechain

IPA

investmentpromotionagency

LDCs

leastdevelopedcountries

MNE

multinationalenterprise

SDGs

SustainableDevelopmentGoals

SEZ

specialeconomiczone

UNCTAD

UnitedNationsConferenceonTradeandDevelopment

UNECA

UnitedNationsEconomicCommissionforAfrica

UNIDO

UnitedNationsIndustrialDevelopmentOrganization

VAT

valueaddedtax

WHO

WorldHealthOrganization

iv

BuildingthecaseforinvestmentinlocalpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

Tableofcontents

Acknowledgements iii

Abbreviations iv

Overview vi

Keymessages:10takeawaysforinvestmentpolicymakers ix

Introduction x

Chapter1Impact:seizingthebenefits 1

A.Healthimpact 3

B.Strategicimpact 5

C.Economicimpact 7

Chapter2Feasibility:assessingthebusinesscase 9

Stylizedevidence 11

Maindeterminants 13

Chapter3Incentives:catalysinginvestment 21

Policyframework 23

Incentivedesignandgovernance 24

Chapter4Africareadinessforlocalproduction 33

High-levelmapping 35

Policyresponses 37

Chapter5InsightsfromUNCTAD–EACproject

onlocalproductionofantibioticsinEastAfrica 41

Assessment 43

Policyrecommendations 47

Conclusionandpolicyimplications 51

References 54

Annex 57

v

BuildingthecaseforinvestmentinlocalpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

Overview

HightimeforinvestmentpromotioninlocalpharmaceuticalproductioninAfrica

Investmentinlocalpharmaceuticalproductionhasbecomeaglobalpriority,particularlyafterthecoronavirus(COVID-19)pandemic.ThisfocusalignswithSustainableDevelopmentGoal3(SDG3),whichaimstoensurehealthylivesandpromotewell-beingforall.Target3.Bemphasizestheneedforaffordableaccesstoessentialmedicinesandvaccines.Supportinginvestmentinlocalmanufacturingcapacitycontributestomeetingtheseglobalhealthgoalsandtoreducingrelianceonexternalsupplychains.

InAfrica,wherethereisheavydependenceonimportedmedicinesandlimitedaccesstoessentialdrugs,thisissuehastakenonspecialurgency.Thediscussionhasnowmovedfromwhethertopromotelocalproductionacrossthecontinenttohowtomakeithappen.Strengtheningthepharmaceuticalindustry,coupledinvestingadequatelyinhealthcareservices,iskeytoimprovinghealthoutcomesandbuildingresilienceinAfricanhealthcaresystems.

Ambitionversusreality:atoughbusinesslandscape

TheAfricanpharmaceuticalmarketreliesheavilyonimports,withover70percentofpharmaceuticalssourcedexternally,primarilyfromAsia.WhilelocalproductionexistsinabouthalfofAfricancountries,itispredominantlyconcentratedinNorthAfricaandafewregionalhubsinsub-SaharanAfrica.Itisdrivenlargelybydomesticsmallandmedium-sizedenterprises,withlimitedforeigndirectinvestment(FDI).

Theunderlyingbusinessmodelisnotfullylocalbutmixed,involvingtheimportationofactivepharmaceuticalingredients(APIs)forlocalformulation.Withastrongemphasisongenericdrugs,profitmarginsaredrivenbycostsandvolumes,exposingtheAfricanpharmaceuticalindustrytomajorcompetitivepressurefromglobalmanufacturers.

Whatisneeded?Acomprehensiveapproachtopromotinginvestment:impact,feasibilityandincentives

PromotinginvestmentinlocalpharmaceuticalproductionacrossAfricaisacomplextaskthatrequirescollaborationamongmultiplestakeholders,fromboththepublicandprivatesectors,atnational,regionalandgloballevels.Todevelopeffectiveandsustainablestrategies,investmentpolicymakersneedtorelyonacomprehensiveframeworkcentredonthreekeypillars:impact,feasibilityandincentives.

Impact:healthfirst,butalsostrategicandeconomicimpact

Thevaluepropositionforlocalproductionisthreefold.Themosturgentisthehealthimpact,whereincreasedlocalproductioncansignificantlyimproveaccesstomedicines.Thisisparticularlyimportantforessentialdrugssuchasvaccinesandantibiotics,wheretimelyavailabilityiskeytoimprovingpublichealthoutcomesandevenpreventinghealthcarecrises.

Onthestrategicfront,localproductionenhancesnationalhealthsovereigntybyreducingrelianceonimportsandensuringastablesupplyofessentialmedicines.Economically,itcanstimulatejobcreation,fosterlocalindustriesandsupportlong-termeconomicdevelopment.Theinterplay

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BuildingthecaseforinvestmentinlocalpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

betweenhealth,strategicandeconomicimpactscreatesavirtuouscycle,whereimprovedaccesstomedicinesenhanceshumancapital,boostsproductivityandstrengthenseconomicresilience,whilesimultaneouslyattractinginvestmentandfosteringlong-termdevelopment.

Feasibility:localproductioncanbecompetitivewithimports,undertherightconditions

ThebusinesscaseforlocalpharmaceuticalproductioninAfricafacessignificantchallenges,particularlybecauseofhighproductioncostsandrelianceonimportedAPIs.Thesefactorslimitthecompetitivenessoflocalproductionwithimports.However,stylizedevidencesuggeststhat,atsufficientscale,Africanlocalproductionbecomescompetitivewithimports.

AchievingcompetitivenessinAfrica’spharmaceuticalindustrydependslargelyonincreasingproductionvolumes.Inaddition,theestablishmentofstrategicpartnershipswithmultinationalenterprisesandofstronginfrastructureandregulatoryframeworks–atbothnationalandregionallevels–canalsomakeadifference.

Incentives:balancingimpactandfeasibility

Incentivesplayakeyroleinbalancingthefeasibilityandtheimpactoflocalproduction.Well-designedincentivescanimprovefeasibility,makinglocalproductionmorecompetitiveandunlockinghealthandeconomicbenefits.However,whenfeasibilityislow,thecostsofincentivesrise,requiringcarefulconsiderationoftheirbenefitsagainstotherpublicneeds.Policymakersmuststrategicallyassesshowincentivescandrivefeasibilitywhiledeliveringmeaningfulimpacts,toensurethebestuseofpublicresources.

ThepromotionoflocalpharmaceuticalproductioninAfricareliesonacombinationofproduction-facilitatingincentives,suchasfiscalincentives,andmarket-shapingincentives,suchaspreferentialprocurement.Effectivegovernance,withclearcriteriaandregularmonitoring,iskeytoensuringthesustainabilityandimpactofthesemeasures.

IsAfricaready?Anarrowpathformanycountries

ThereadinessforlocalpharmaceuticalproductioninAfricadependsonfactorsthatvarywidelyacrosscountries,amongthempopulationsize,industrymaturityandFDIpresence.Ahigh-levelmappingrevealsthatmanycountriesfacesubstantialbarriers,withsmallereconomiesconfrontingespeciallynarrowpathstoindustrialization.

IndustrialpathstolocalproductioninAfricabroadlyfitintofourmainpolicyclusters.Starters

–generallythesmallest,predominantlylow-income,economies–facesignificantstructuralbarrierstoinitiatinglocalproductionandachallengingtrade-offwithimports.Prospectshavehighuntappedmarketpotentialandshouldprioritizemobilizinginvestmentstofullycaptureit.Followersneedtosustaintheirexistinglocalproductionandleverageopportunitiesfromregionalintegration.Regionalleadersarethepharmaceuticalhubsintheirrespectiveregionsandshouldfocusonexpandingandupgradingtheirindustries.

Insightsfromthefield:howtoleveragelocalproductiontotackleantimicrobialresistance

ThefieldprojectInvestmentIncentivesforLocalProductionofEssentialAntibioticsinEastAfricacarriedoutbyUNCTADandtheEastAfricanCommunity(EAC)overtheperiod2019-2023provideskeyinsightsintoantibioticproductionandantimicrobialresistance(AMR)intheregion,withafocusonEthiopia,KenyaandUganda.LocalproductioncanimproveaccesstoessentialantibioticsandhelpreducetheburdenofAMR,butitmustbeintegratedwithAMR

vii

stewardshiptomaximizehealthbenefits.Thefeasibilityofantibioticproductionvariesacrosscountries,requiringtailoredinvestmentstrategies.Despitepublicsupport,currentpolicieslacktargetedincentivesforantibioticproduction,whichhighlightstheneedforrefined,product-andcountry-specificinterventions.

AddressingcommonAMRchallengesandgapsinincentiveschemescallsforsharedpolicyrecommendations,includingimprovedinformationsystems,product-specificincentivesforantibiotics,incentiveslinkedtocompliancewithgoodmanufacturingpractices(GMP),strongerregionalintegrationandexplorationofjointAPIprocurement.Inaddition,eachcountryrequirestailoredinvestmentstrategiestomeetitsuniquefeasibilityconditionsandindustrialgoals.

Noteonthescope.

Thisreportemphasizeslocalformulation–theprocessof(locally)transformingimportedAPIsintofinishedpharmaceuticalproducts–asthemostimmediateandfeasiblestrategyforenhancingmedicineproductioninAfrica.ItisneverthelessimportanttorecognizethestrategicrelevanceofAPIproductioninbuildingresilientAfricanmanufacturing.

Intheshorttomediumterms,scalingAPIproductionacrossAfrica–beyondafewofthecontinent’smostadvancedpharmaceuticalhubs–remainsconstrainedbymarketandindustryconditions.Theseincludethelackofanestablishedindustrialbase,fragmenteddemand,limitedeconomiesofscaleandweakintegrationintoglobalsupplychains.Nonetheless,countriessuchasEgyptandNigeriaaremakingeffortstostrengthenAPIproduction,demonstratingboththepotentialforprogressandthenecessityforsustainedinvestmentandstrategicplanning(UNCTAD,2023d).

AchievingsustainablelocalAPIproductiondemandsmorecomplexenablingconditionsthanachievinglocalformulation.Theseconditionsincluderobustpolicyframeworks,strategicinvestmentininfrastructureandinresearchanddevelopment(R&D),technologytransfer,andincentivestofostermarketconsolidationandregionalcollaboration.Althoughtheseconditionsrequiretimetoachieve,theyareessentialforbuildingaresilientpharmaceuticalmanufacturingecosysteminAfrica.

Thisreportismorelimitedinscope.Itfocusesonlocalformulationasapracticalandmorewidelyaccessiblesteptoharnessimmediateinvestmentopportunitiesandcatalysethedevelopmentoflocalandregionalpharmaceuticalvaluechains.Atthesametime,itunderscorestheimportanceofcontinuingeffortstoadvanceAPIproductioncapabilitiesovertime.

viii

Keymessages:10takeawaysforinvestmentpolicymakers

Strategicpriorities:

Addressthehealthimperative.LocalpharmaceuticalproductionisessentialforimprovingaccesstomedicinesinAfrica,contributingtotheachievementofSDG3andtoaddressingcriticalpublichealthchallengessuchaspandemicsandAMR.

Promoteacomprehensiveapproach.Supportinglocalproductionisacomplex,multidimensionalpolicygoalthatrequiresacomprehensivestrategythatalignshealth,economicandbusinesspriorities.Thisstrategymustaddressmultipleinterconnecteddimensionssuchasimpact,feasibilityandincentives.

Balanceincentiveswithfeasibilityandimpact.Incentivesarekeytotriggeringinvestment

inlocalproductioninAfrica.Toensurethebestuseofpublicresources,policymakersmust

strategicallyassesshowincentivescandrivefeasibilitywhiledeliveringmeaningfulimpacts.

Tailorpolicyresponsestocountry-specificconditions.Africa’sdiversitypresentsbothchallengesandopportunities.Tailoringinvestmentpromotionstrategiestoeachcountry’suniqueconditionswillbekeytofosteringasustainableandresilientpharmaceuticalindustryacrossthecontinent.

Investmentpromotionstrategy:

Enhanceincentiveschemes.Policymakersshoulddesignabalancedmixofproduct-facilitatingincentives(e.g.fiscalmeasures)andmarket-shapingpolicies(e.g.preferentialprocurement)tosupportlocalpharmaceuticalproduction,ensuringtheseincentivesaregovernedtransparentlyandeffectively.

LeverageFDI.PolicymakersneedtorecognizetheuntappedpotentialofFDI,whichhas

beenunderutilizedinthepast.Suchinvestmentiscriticalforfinancingproductivecapacity,

integratinglocalindustriesintoglobalvaluechainsandfacilitatingtechnologytransfer.

Investinspecializedinfrastructureandspecialeconomiczones(SEZs).GovernmentsshouldprioritizeinvestmentinSEZsandotherdedicatedinfrastructuretoattractFDIandcreateconduciveenvironmentsthatsupportlong-termgrowthinpharmaceuticalmanufacturing.

Operationalandregulatoryenablers:

Fosterregionalintegrationandcross-countrycollaboration.Regionalintegrationopenspromisingprospectsforovercomingmarketfragmentationandachievingeconomiesofscale,harmonizingregulations,poolingprocurementandcoordinatinginvestmentstrategies.

IncorporateAPIsupplychainstrategies.Tocaptureimmediateinvestmentpromotionopportunities,policymakersshouldcoupleinvestmentinlocalformulationcapacitywithstrategiesaimedatenhancingthestabilityoftheAPIsupplychain,whilelayingthegroundworkforlonger-termlocalAPIproduction.

Strengtheninvestmentfacilitation.Reducingadministrativebarriersthroughdigitalplatformsandstreamlinedregulationsenhancesinvestmentfacilitation.Thesemeasurescancreateamoreefficientandattractiveinvestmentclimate,especiallyinahighlyregulatedsectorlikepharmaceuticals.

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BuildingthecaseforinvestmentinlocalpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

Introduction

HightimeforinvestmentpromotioninlocalpharmaceuticalproductioninAfrica

Investmentinlocalpharmaceuticalproductionhasbecomeaglobalpriority,particularlyaftertheCOVID-19pandemic.ThisfocusalignswithSDG3,whichaimstoensurehealthylivesandpromotewell-beingforall.Target3.Bemphasizestheneedforaffordableaccesstoessentialmedicinesandvaccines.Supportinginvestmentinlocalmanufacturingcapacitycontributestomeetingtheseglobalhealthgoalsandtoreducingrelianceonexternalsupplychains.

InAfrica,wherethereisheavydependenceonimportedmedicinesandlimitedaccesstoessentialdrugs,thisissuehastakenonspecialurgency.Thediscussionhasnowmovedfromwhethertopromotelocalproductionacrossthecontinenttohowtomakeithappen.Strengtheningthelocalpharmaceuticalindustry,coupledwithadequateinvestmentinhealthcareservices,isseenaskeytoimprovinghealthoutcomesandbuildingresilienceinAfricanhealthcaresystems.

Local production widelyadvocatedby

policymakers

Promotinglocalpharmaceuticalproductionhasbecomeaprominentpolicypriorityworldwide,includingintheUnitedStates,1theEuropeanUnion,2India3andAfrica.4TheCOVID-19pandemichasheightenedpre-existingconcernsaboutdependencyonimportedmedicinesandvaccines,spurringsupportforinitiativesaimedatlocalizingproduction–definedasproductionwithinageographicalregion,whetherdomesticallyorforeignowned.

Forwelloveradecade,greaterpharmaceuticalproductioninlowandmiddle-incomecountrieshasbeenadvocatedinternationally(WHO,2008).Ina2019jointstatementUNCTAD,togetherwithotherUnitedNationsagenciesandtheGlobalFund,stated,“inrecognitionoftheimportantrolelocalproductioncanplayinimprovingaccesstoquality-assuredmedicalproductsandachievinguniversalhealthcoverage,theundersignedorganizationsaimtoworkinacollaborative,strategicandholisticmannerinpartnershipwithgovernmentsandotherrelevantstakeholderstostrengthenlocalproduction”.5

1See

/about/news/2023/11/27/biden-harris-administration-announces-actions-bolster

-medical-supply-chain.html;

/cea/written-materials/2023/11/30/issue-brief

-supply-chain-resilience/.

2See

https://health.ec.europa.eu/system/files/2021-02/pharma-strategy_report_en_0.pdf

.

3See

.in/schemes/production-linked-incentive-pli-scheme-promotion-domestic

-manufacturing-critical-key.

4See

/en/press/all/2023-095-eib-and-afreximbank-launch-eur-200m-africa-health

-resilience-investment-initiative#:~:text=The%20new%20EIB%2DAfreximbank%20health,and%20increasing%20local%20pharmaceutical%20manufacturing.

5WorldHealthOrganization(WHO),UnitedNationsIndustrialDevelopmentOrganization(UNIDO),UnitedNationsConferenceonTradeandDevelopment(UNCTAD),JointUnitedNationsProgrammeonHIV/AIDS(UNAIDS),UnitedNationsChildren’sFund(UNICEF)andtheGlobalFund.(2019).Interagencystatementonpromotinglocalproductionofmedicinesandotherhealthtechnologies.Retrievedfrom

https://www.unaids

.org/en/resources/presscentre/pressreleaseandstatementarchive/2019/may/20190524_local-production-medicines.

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BuildingthecaseforinvestmentinlocalpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

Africa,thecontinentmostreliantonimportedmedicines,iscentralinlocalproductionpolicydiscussionsandinitiatives,atthecontinentallevel(AfricanUnion,2007,2022;AfricanUnionandUNIDO,2012),theregionallevel(EAC,2017)andthenationallevel(UNCTAD,2023a,2023b,2023c).Theissuesfacedduringthepandemicinsourcingessentialrawmaterialsandfinishedpharmaceuticalshaveintensifiedpolicyattention,particularlyonvaccineproduction(Bandaetal.,2021,2022;AfricanDevelopmentBank,2022).

Perhapscontrarytocommonperception,localpharmaceuticalproductioninAfricaisnotrecent.Itsoriginsdatebacktotheendofthe19thcentury,withseveraldocumentedcasesofsuccessacrosscountries(UNCTAD,2011a;Mackintoshetal.,2016;Chorev,2019;Bandaetal.,2022).Yet,thefeasibilityoflocalproduction–especiallyineconomieswithsmallermarkets–remainshighlycontentious(KaplanandLaing,2005;UNCTAD,2011a;ChauduryandWest,2015;Conwayetal.,2019).

Discussions

onlocal

productioninAfricahave

shiftedfrom“if”to“how”

Beyondlong-standingpolicyandacademicdebates,therealityisthatpolicymakersatnationalaswellasregionalandinternationallevelsareactivelypursuingAfricanpharmaceuticalproduction.Thefocusofdiscussionshasshiftedinthepastdecadefromwhethertopromotelocalpharmaceuticalproductiontohowtodoiteffectively.6

Inthiscontext,thisreportproposesacomprehensiveframeworktopromoteinvestmentinlocalpharmaceuticalproductioninAfrica.ItaimstoinformdiscussionsonthefactorsshapinginvestmentinlocalproductionandtheappropriatepolicyincentivestopromoteitacrossAfricancountries.Thereportfocusesontheinvestmentpromotiondimensionoflocalproduction.Occasionalreferencestohealthpoliciesandregulationsaremadeonlytotheextentthattheyinfluenceinvestmentaspects.

ThispublicationbuildsontwodecadesofUNCTADexperiencesupportinglocalpharmaceuticalproductionindevelopingcountriesthroughresearch,technicalcooperationandconsensus-building(box1).ArecentjointUNCTAD–EACprojecthasfocusedinparticularonpromotinginvestmentincentivesforthelocalproductionofessentialantibiotics.ThiscollaborationledtotheadoptionofaregionalpolicyframeworkandaninformationexchangemechanismbytheEACCouncilofMinistersinNovember2023,markingasignificantstepforwardinregionalcooperationforlocalpharmaceuticalproduction.7

Buildingonthislong-standingengagement,thisreportdrawsonfirsthandinsightsfromstakeholdersinvolvedinlocalpharmaceuticalproductionacrossAfrica,includingpolicymakers,businessleadersandrepresentativesofnon-governmentalorganizations.Itpresentsacomprehensiveandbalancedapproachtoassessingthecasefor,andpromotinginvestmentin,Africanpharmaceuticalproduction.Byintegratingthehealth,economicandbusinessdimensionsoflocalproduction,themaingoalofthisreportistoserveasaplatformforconstructivedialogueamongvariousstakeholders.ItwillguidefutureUNCTADengagementinAfricaandotherdevelopingregions,informingpolicyinitiativesthatsupportinvestmentinthelocalpharmaceuticalindustry.

6Seeforexample,severalindustryprofilesforAfricancountriesthatidentifychallengesfacinglocalmanufacturersandsuggeststrategiesforenhancinglocalmanufacturing(e.g.UNIDO,2011;GovernmentofEthiopia,2015).

7See“

EACCouncilofMinistersadoptsRegionalFrameworkforthesupplyandproductionofantibiotics

”,20December2023,

/news/unctad-outlines-actions-boost-production-essential-antibiotics-

east-africa

.

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BuildingthecaseforinvestmentinlocalpharmaceuticalproductioninAfrica

Acomprehensiveframeworkforinvestmentpolicymakers

Box1

UNCTADengagementwithlocalpharmaceuticalproductionindevelopingcountries

UNCTADworkonpromotinglocalpharmaceuticalproductionindevelopingcountriestoimproveaccesstomedicinesstemsfromitslongstandingexpertiseininvestmentandtechnologytransfer.Followinga2005recommendationfromitsCommissiononInvestment,TechnologyandRelatedFinancialIssuesto“assesswaysinwhichdevelopingcountriescandeveloptheirdomesticproductivecapacityinthesupplyofessentialdrugsincooperationwithpharmaceuticalcompanies”,UNCTADlaunchedabroadcapacity-buildingprogramme.Thisinitiativebe