Ethiopia Pharmaceuticals and Healthcare Report Q4 2017
BMI View: Achieving pharmaceutical self-sufficiency will remain a challenging ambition for Ethiopia'slargely underdeveloped drug industry. Whilst progress has been made towards boosting the capacity of thedomestic industry, Ethiopia remains a long way from achieving sustainable medicine production. Greaterinterest from foreign investors and further government support will boost the capacity of Ethiopia'spharmaceutical landscape over the long term; however, opportunities for patented firms will be limitedgiven the weak purchasing power among large segments of the population.
Headline Expenditure Projections
Pharmaceuticals: ETB9.0bn (USD411mn) in 2016 to ETB9.7bn (USD417mn) in 2017; 7.9% growth inlocal currency terms and 1.3% in US dollar terms.
Healthcare: ETB59.1bn (USD2.7bn) in 2016 to ETB63.4 (USD2.7bn) in 2017; 7.4% growth in localcurrency terms and 0.9% in US dollar terms.
Innovative Risk/Reward Index
Ethiopia's pharmaceutical market will remain challenging for multinational drugmakers and offers limitedinvestment prospects for innovative firms, reflected in a score of 22.2 out of 100 in BMI's InnovativePharmaceuticals Risk/Reward Index. The high degree of poverty and continued poor healthcare access forrural populations will challenge medicine sales in the country. This is compounded by a lack of patentenforcement, market access barriers and elevated political risks.