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Zimbabwe Pharmaceuticals and Healthcare Report Q2 2008Published by: Business Monitor International Published: May. 14, 2008 - 63 Pages Table of Contents
AbstractZimbabwe’s pharmaceutical sector continues to struggle under the weight of international sanctions andhyperinflation. We estimate the market to have been worth US$4.5mn in 2007 - down 9% on its 2006value. Despite uncertainties surrounding the economic climate making long term drug market forecastsproblematic, we expect the market to shrink further to US$3.7mn by 2012, taking into account thenegative real GDP growth widely expected for the economy as a whole.A shortage of foreign currency placed severe limits on the ability of pharmacies to import drugs duringthe second half of 2007. According to reports in the local media, around half of drugs were out of stock inpharmacies surveyed, while those that were available had risen to prices that were multiples of localworkers’ salaries. Meanwhile, Zimbabwe’s manufacturing industry is suffering from similar constraints - with a lack offoreign currency reducing the volume of raw materials that can be imported. Problems at home havemade exports a vital source of income and foreign currency. In this regard, CAPS Holdings continues tolead the way with exports to South Africa, Mozambique and Botswana. Meanwhile, Varichem Labsfound another source of foreign currency - the UN Development Programme (UNDP) - which supporteda US$2.1mn upgrade of its antiretroviral (ARV) manufacturing plant completed in January 2008 that isexpected to ensure World Health Organisation (WHO) compliance. In BMI’s updated business environment ratings for the Middle East and Africa, Zimbabwe scored 15 outof a possible 100 putting it in last place out of 14 markets surveyed. Its poor showing takes into accountfactors including a small, contracting market, unfavourable regulatory environment and challengingeconomic and political situation. Fees in the healthcare sector have struggled to keep pace with inflation. Insurance in particular hassuffered because premiums and benefits levels set in advance have been eroded by rises in health fees.Meanwhile, the economic crisis seems to have put pay to any chance of a national health insurancescheme, meaning that out of pocket spending is likely to continue to increase as a proportion of healthexpenditure. Get Full Details About This Report >> |
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