Pharmaceutical sector offers potential for economic growth

TheVoiceBW
POTENTIAL OPPORTUNITY: Localizing the medicine manufacturing industry

Botswana is rapidly working to capitalise on its pharmaceutical import budget by localising the manufacturing of essential medicines, vaccines, and crucial health consumables.

Currently, Botswana’s drug manufacturing capacity is limited with imports having increased by 14 percent year-on-year and reaching P2.2 billion in 2023 with over 68 percent of these imports coming from South Africa and India.

The sector’s growth is largely driven by healthcare spending, which accounted for 5.8 percent of gross domestic product in 2023, with local expenditure totalling $ 1.3 billion.

In a recent pharmaceutical sector dialogue, which discussed findings from a report in collaboration with Africa Rise, Botswana Investment and Trade Centre (BITC) chief executive officer, Keletsositse Olebile emphasised that for Botswana to become a competitive player in the pharmaceutical industry, it must focus on policy advocacy, human capital development, and collaboration to leverage the biodiversity of local resources, including indigenous medicinal plants and raw materials from the mining sector.

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“The sector for manufacturing vaccines, medicines, and health technologies in Africa is supported by a €1 billion fund from the EU budget, facilitated through European development finance institutions like the European Investment Bank, with additional contributions from other EU member states. This is to create a conducive environment,” highlighted Olebile.

According to BITC Director of Research, Moemedi Mokgosi there is a significant potential in the sector, with antiretrovirals, anti-infectives, and antibiotics, available in tablet and injectable forms emerging as the most procured medicines.

“If Botswana’s pharmaceutical sector substitutes imports and increases local production for export, it could contribute $190 million, which is equivalent to 1 percent of GDP, compared to the current $14 million.”

“We are prepared to manufacture our own pharmaceuticals with the support of the Botswana Bureau of Standards and the African Free Trade Area. However, we need assistance from large pharmaceutical companies due to their expertise. We must ensure that we patent, trademark, and copyright our innovations,” said Moalosi Seno, a representative from the Pharmaceutical Society of Botswana speaking on the potential of local companies readiness to produce locally.

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