Manufacturers under the aegis of the Pan African Manufacturers Association (PAMA) have called on Nigeria and the rest of Africa to urgently rethink trade and industrial policies to accelerate local pharmaceutical manufacturing, reduce import dependence and strengthen the continent’s healthcare security.
According to data by Grandview Research, Africa’s pharmaceutical market was valued at $27.65 billion in 2024 and is projected to grow to $36.96 billion by 2033, at a compound annual growth rate (CAGR) of 3.3 per cent between this year and 2033. This growth is said to be driven by the rising burden of communicable and non-communicable diseases across the continent.
Despite the expanding demand, PAMA’s President, Mansur Ahmed, noted that Africa remains overwhelmingly dependent on imported medicines and pharmaceutical inputs.
Over 70 per cent of medicine consumed in Nigeria and Africa is imported, while half of the African countries have no local pharmaceutical production at all. Manufacturing capacity is also highly concentrated, with just eight countries, half of them in North Africa, accounting for 85 per cent of the continent’s 690 pharmaceutical facilities.
Even more concerning, he said, is that most existing facilities operate at 30 to 60 per cent capacity, far below the 70 per cent or more typical in developed economies.
He noted that Nigeria and the rest of Africa source the bulk of its generic medicines and active pharmaceutical ingredients (APIs) from India and China, while patented and branded medicines are largely imported from the European Union, the United States and Japan.
Ahmed added that recent developments in global trade policy, particularly the United States’ tariff regime on branded pharmaceutical products, offer critical lessons for Africa. Under the U.S. policy, imported branded drugs face tariffs of up to 100 per cent, with exemptions granted only to companies that are already building manufacturing plants in the U.S.
“This policy is not simply about protectionism,” he said. “It is a deliberate industrial strategy designed to redirect global pharmaceutical investment into domestic manufacturing, compel technology transfer and create jobs.”
By conditioning market access on local production, the U.S. is effectively telling global pharmaceutical firms that participation in its vast consumer market requires tangible domestic investment, he noted. Ahmed said Nigeria and the rest of Africa must adopt this mindset as well.
“For us, the takeaway is profound,” he said, adding that “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”.
He called for the fast-tracking of regional pharmaceutical manufacturing hubs of Nigeria, South Africa, Egypt, Kenya and Ghana, supported by coordinated incentives including plug-and-play industrial parks, reliable utilities, tax incentives for plant investment and accelerated regulatory approvals.
He also urged the government to leverage public procurement policies to encourage multinational pharmaceutical companies to establish production facilities in Africa, mirroring the U.S.’ approach of linking market access to local manufacturing. “ We must adopt targeted industrial strategies that prioritise research and development in high-burden disease areas such as oncology, cardiovascular and metabolic therapies, while also supporting nutraceuticals, vitamins and herbal products where Africa can build a comparative advantage.
“Finally, we must strengthen regulatory and enforcement frameworks through continent-wide digital medicine verification systems, investment in Regional Drug Regulatory Authorities (RDRAs) and robust cross-border enforcement under the African Continental Free Trade Area (AfCFTA) Protocol on Trade in Goods,” he said.
