Mozambique Pharmaceuticals and Healthcare Report Q2 2012

BMI View: Mozambique’s pharmaceutical market is typical of developing markets, with a poor regulatory framework, dependence upon donations by aid and government agencies, low spending on healthcare per capita and with health centres and hospitals understaffed by individuals that often lack sufficient training. Current market opportunities are limited to the sale of low-margin, generic drugs, although plans for Mozambique to build its first domestic pharmaceutical production plant – in a deal partly funded by Brazil – could help attract additional international investment once it begins production later in 2012. Mozambique is burdened by both communicable and non-communicable diseases.

Headline Expenditure Forecasts Pharmaceuticals: MZN2.31bn (US$80mn) in 2011 to MZN2.52bn (US$94mn) in 2012; +9.1% in local currency and +18.3% in US dollar terms.

Healthcare: MZN20.27bn (US$699mn) in 2011 to MZN22.96bn (US$858mn) in 2012; +13.3% in local currency and +22.8% in US dollar terms. Business Environment Rating: Mozambique scores 39.1 out of 100 in the Q212 Pharmaceutical Business Environment Ratings (BERs) and ranks 22nd out of 30 in BMI’s Middle East and Africa regional ratings. Mozambique has a below-average score in all categories, although it scores 40 out of 100 in terms of Industry Rewards, just below the regional average of 41.

Key Trends & Developments Health Minister Alexandre Manguele announced in January 2012 that Mozambique is scheduled to produce its first antiretroviral drugs by July 2012. Mozambique will produce the drugs in a facility constructed thanks to Brazil funding.

Mozambique, Brazil and the US signed an agreement in January 2012 which will see the three countries collaborating on food security, agriculture and health. Part of this agreement concerns the distribution of essential drugs, and the training of Mozambican healthcare professionals by US and Brazilian doctors.

In January 2012, Mozambique was affected by two tropical storms, these saw part of its main national highway cut off and by 24 January 2012, the death toll stood at 18. The government has expressed its concern at the risk of a cholera outbreak and has distributed chlorine tablets to purify water.

BMI Economic View: Mozambique is a fast growing economy, rich in natural resources, with important agricultural exports and a growing manufacturing industry. BMI Political View: Mozambique is a multiparty democratic state, and while general elections are scheduled for 2014, BMI does not expect these elections will be accompanied with civil unrest and market disruptions.