The Pan African Manufacturers Association (PAMA) has issued a powerful call to action, urging Nigeria and the broader African continent to fundamentally redesign their trade and industrial policies. The goal is to urgently accelerate domestic pharmaceutical manufacturing, drastically cut down on import reliance, and fortify the continent's healthcare security.
The Stark Reality of Africa's Pharmaceutical Dependence
Despite a market valued at $27.65 billion in 2024 and projected to grow to $36.96 billion by 2033, Africa's health sector remains critically vulnerable. PAMA's President, Engr. Mansur Ahmed, highlighted a troubling dependency, noting that over 70 per cent of medicines consumed in Nigeria and Africa are imported.
He revealed that half of all African nations have no local pharmaceutical production whatsoever. Manufacturing is heavily concentrated, with just eight countries accounting for 85 per cent of the continent's estimated 690 facilities. Even where plants exist, they often operate at a mere 30 to 60 per cent of their capacity, a stark contrast to the 70 per cent or more typical in developed economies.
Africa sources the bulk of its generic medicines and Active Pharmaceutical Ingredients (APIs) from India and China, while patented drugs flow in from the European Union, the United States, and Japan.
The U.S. Tariff Model: A Strategic Blueprint for Africa
Ahmed pointed to recent global trade developments, specifically the United States' tariff regime on branded pharmaceutical products, as a critical lesson. Under this policy, imported branded drugs face tariffs as high as 100 per cent, with exemptions only for companies building manufacturing plants within the U.S.
"This policy is not simply about protectionism," Ahmed explained. "It is a deliberate industrial strategy designed to redirect global pharmaceutical investment into domestic manufacturing, compel technology transfer and create jobs." By linking market access to local production, the U.S. compels global firms to make tangible domestic investments.
"For us, the takeaway is profound," he stated. "Trade policy should not be treated as passive participation in global commerce, but as a strategic tool for shaping investment flows and building industrial capacity."
A Multi-Pronged Action Plan for Continental Self-Reliance
To turn the tide, PAMA advocates for a coordinated, continent-wide strategy. Key recommendations include:
- Fast-tracking Regional Hubs: Accelerating the development of pharmaceutical manufacturing hubs in Nigeria, South Africa, Egypt, Kenya, and Ghana, supported by plug-and-play industrial parks, reliable utilities, tax incentives, and swift regulatory approvals.
- Leveraging Public Procurement: Using government purchasing power to encourage multinational pharmaceutical companies to establish production facilities in Africa, mirroring the U.S. approach of conditioning market access on local investment.
- Targeted R&D Investment: Prioritizing research and development in high-burden disease areas like oncology, cardiovascular, and metabolic therapies, while also building on Africa's comparative advantage in nutraceuticals, vitamins, and herbal products.
- Strengthening Regulatory Frameworks: Implementing continent-wide digital medicine verification systems, investing in Regional Drug Regulatory Authorities (RDRAs), and ensuring robust cross-border enforcement under the African Continental Free Trade Area (AfCFTA) Protocol on Trade in Goods.
The call from PAMA underscores a pivotal moment for African nations to harness strategic trade policy as an instrument for industrial development, ultimately securing health sovereignty and driving economic growth.
