Opportunities in Pharmaceuticals
Uganda combines a growing pharma market with access to the EAC market of 175 million people. With relatively high levels of skills and education and an investor-friendly environment, Uganda is a burgeoning pharmaceuticals centre.
Why Uganda ?
- Uganda has a large domestic market with demand for edible oils expanding rapidly (Uganda’s imports of edible oils increased more than five-fold to over $ 30 million in 2017).
- Member of EAC, which had recorded ever imports of edible oils in 2017, with 50% growth reaching nearly $1 billion.
- Uganda has a strong track in the production of agricultural products and is the most open trading country in the region.
- 35% of Uganda’s land is arable and suitable for growing edible oil seeds. such as sesame, soya bean, and sunflower.
Strength of the Pharma sector in Uganda ;-
- In 2018, there were over 300 life sciences companies and over 30 pharmaceuticals and medical devices manufacturing companies in Uganda {Source: fDi Benchmark from the Financial Times Limited).
- These companies currently manufacture 173 pharmaceutical products in Uganda {Source: Uganda National Drug Authority).
- Uganda is highly specialised in pharmaceuticals; the chemical sector (which includes pharmaceuticals) accounts for over 10% of Uganda’s manufacturing value added – the highest in the region.
Medical Consumables - Medical consumables is a rapidly growing segment of Uganda’s healthcare sector. In 2017, the import of medical consumables in Uganda grew by over 60% compared to 6% growth in Sub-Saharan Africa as a whole.
- Total medical consumables imports into EAC are averaging over $250 million per annum with Uganda the fastest growing market.
- There is strong investment potential to produce cotton-based consumables in Uganda including wadding, gauze, bandages and surgical cotton wool. Raw materials can be sourced
locally given Uganda’s comparative advantage in cotton production.
There are also opportunities to manufacture medical supplies and instruments which have strong market.
Featured SUCESS STORIES
CIPLA India has established a WHO pre-qualified plant in Uganda producing ARVs, anti-malarials and anti-hepatitis medicines with purchase agreements with the Governments of Uganda and Zambia, In 2018, CIPLA Uganda raised US$ 43.8 million in a local IPO.
Alfasan of the Netherlands invested in Uganda via a joint venture with Farm Support, a Ugandan company, to produce vet and human drugs.