Zimbabwe Pharmaceuticals and Healthcare Report Q4 2017

Zimbabwe Pharmaceuticals and Healthcare Report Q4 2017

BMI View:

Zimbabwe's pharmaceutical market presents significant growth potential given itsunderdevelopment. However, a combination of economic and market challenges will ensure that it remainshighly challenging for multinational pharmaceutical firms to invest locally. As such, we expect theZimbabwean government to prioritise the local generic drug industry in order to control costs and boostdomestic drugmaker competitiveness. Besides encouraging greater investment into local drugmanufacturing, the government's pro-generic drug policy on imports will need to be altered in order toadvance local firms' position in the market.

Headline Expenditure Projections

Pharmaceuticals: USD396mn in 2016 to USD413mn in 2017; +4.3% in US dollar terms. Forecastunchanged from previous quarter.

Healthcare: USD897mn in 2016 to USD863mn in 2017; -3.9% in US dollar terms. Forecast unchangedfrom previous quarter.

Risk/Reward Index

Sub-Saharan Africa is a region with high variability of market attractiveness for innovative drugmakers.While certain markets hold significant opportunities for the commercialisation of pharmaceuticals, theregion itself lags behind global standards in all areas given its underdeveloped nature. As such, it is vitalthat companies appreciate the varying levels of investment risks and rewards that are present in the marketsin Sub-Saharan Africa. BMI's Innovative Pharmaceuticals

Risk/Reward Index

tool, which provides aglobally comparative and numerically based assessment of a market's attractiveness for companies lookingto launch a high-value drug, was established to address this.