Unlocking The Potential of Africa’s Pharmaceutical Market

Written by: Magrietha Mallinson, Global Vertical Lead, Health at DP World.

Africa’s growing population, falling mortality rates, and increasing demand for healthcare services make it a market with substantial growth opportunities for European pharmaceutical companies. To capitalise on this transregional opportunity in this emerging market, the pharmaceutical sector must understand the drivers of growth, anticipate potential challenges, and collaborate effectively with local health systems. 

Growing healthcare demand in Africa stems from several persisting health challenges throughout the continent, infectious disease outbreaks among them. Pharma companies have what it takes to address these by leveraging their expertise in research and development and quality medicinal products. However, they need supply chains that are tailored to the region’s topography and their own unique needs, such as timely delivery and consistent refrigeration, to achieve this. 

Luckily, all this can be made possible thanks to Africa’s expanding healthcare infrastructure and our increased investment in the sector, providing an ideal environment for market entry and expansion. This, combined with strategic partnerships, smart regulatory navigation and product customisation can help European pharma businesses seize growth opportunities and make a meaningful impact in Africa. 

Transforming Africa’s Healthcare Landscape

While progress has been made in recent years to strengthen Africa’s healthcare supply chain systems, significant gaps persist, hindering the efficient and timely delivery of essential medical supplies.

However, there is growing recognition of the importance of strong supply chains in improving healthcare access and outcomes. With the pharmaceutical industry moving over $1 trillion worth of cargo globally every year, upholding pharmaceutical product integrity requires specific equipment, storage facilities, harmonised handling procedures and, above all, strong cooperation with partners. 

One such area that is vital for the steady flow of pharma products is cold chain (temperature-controlled) storage. If these facilities aren’t built, then it massively reduces what can and can’t be moved across the continent. That is why, in 2020, we launched the first-of-its-kind cold storage facility in Rwanda. This hub allows end-to-end transport, reduced costs and delivery times while easing market entry for new customers via land and sea. For pharmaceutical companies, this means they can increase their import capabilities without compromising their products. 

These advanced cold chain facilities are strengthening Africa’s healthcare supply chains and allow companies to manage the ever-increasing complexity, risk and speed of modern-day healthcare distribution.

Partnering for Pharma

Public-private partnerships are also proving to be an effective way of streamlining Africa’s distribution networks, optimising inventory management, and implementing cutting-edge technologies – ultimately revolutionising the continent’s healthcare services.

Initiatives like Team Europe on Manufacturing and Access to Vaccines, Medicines and Health Technologies (‘MAV+’), is one such example. This alliance sees member states of the European Union working with financial institutions and African health partners to improve access to affordable, life-saving health products, advance universal health coverage and strengthen health systems on the continent. This is achieved by shared investing in digital resources to modernise the continent’s supply chain infrastructure, and by influencing education to train the healthcare supply chain workforces of today and tomorrow.

Similarly, our collaboration with UK-based financial institution CDC Group is allowing us to increase our investment in the region’s ports, including Dakar, Senegal and Berbera, Somaliland. This partnership boosts our investment power, enabling us to grow port handling capacities, enhance our economic zones (which offer tax leniencies for foreign importers) – and even generate 138,000 employment opportunities for local communities.

These advancements in Africa’s healthcare landscape have been thanks to many stakeholders working together, with their diverse skillsets, networks and experience. To fully ensure that pharma supply chains are adequately prepared for potential disruptions throughout the continent, however – and to make long-term investment here worthwhile for Europe’s pharma leaders – creating safe environments for such collaboration is vital.

Tech-enhanced Visibility and Cooperation

Utilising technology is a means of encouraging this safe and secure collaboration while providing critical oversight of healthcare supply lines. Digital solutions such as Artificial intelligence (AI), blockchain, IoT (Internet of Things), and data analytics, stakeholders can collate real-time insights into inventory levels, transportation routes, and demand patterns. In fact, they can even provide neutral, centralised platforms to help different parties communicate harmoniously – which is key for companies seeking confidence in new markets.  

AI enhances these perks further by generating more accurate forecasting and optimised inventory management, making tracking and traceability easier than ever for all involved – even for the end customer. These predictions lead to quicker and more timely deliveries, retaining the composition of medicines and, ultimately, helping those in need. 

Additionally, because technology facilitates seamless communication and collaboration among supply chain partners, it enables more agile responses to disruptions and emergencies which enhances the overall efficiency and effectiveness of healthcare delivery in Africa.  

Our CARGOES terminal operating software keeps our supply chains synchronised and agile to changing environments – an essential quality across Africa’s different geographies and nations. Importantly, our system allows all parties within a supply chain to share information securely, promoting collaboration that can transform how trade moves.

Building a Self-Reliant Africa

With eased co-operation between European pharmaceutical companies and African stakeholders, there is a growing landscape of greater efficiency and trust. Long term, this offers mutual benefits such as greater investments and advancements in the continent’s supply chains. In other words, the foundations are in place for greater reliability and opportunity throughout the region. 

So, as Europe’s pharma companies grow confidence in Africa’s emerging markets, they will support the development of local manufacturing capabilities. This will create a level of self-reliance and resilience which will reduce Africa’s dependency on imports and boost economic growth across the continent. Most importantly, however, we are beginning to change what’s possible for healthcare in Africa.