Page 6 - LUA September - October 2024

COVER STORY

Public-private partnerships

THE KEY TO AFRICA'S

PHARMA LOGISTICS

EVOLUTION

Despite infrastructure challenges, Africa's pharma logistics sector is poised for
growth, driven by innovation and investment, reports Rajarshi Chatterjee.

recent study by MarkNtel OVERVIEW OF AFRICA'S Bank) reported that less than 30% of
Advisors indicates that the PHARMA SECTOR pharmaceutical products consumed in
African pharmaceutical logistics The African CDC (Africa Centres Africa are manufactured on the continent.
mar
A ket is set to undergo for Disease Control and Prevention) Africa imports 99% of its vaccines and
substantial expansion. The market is and the AfDB (African Development 70% to 90% of its medicines and medical
projected to experience a growth rate of
around 5.13% CAGR from 2022 to 2027,
largely due to increased investments
from global pharmaceutical and
biopharmaceutical companies. Countries
such as South Africa, Nigeria, and Algeria
are seeing a rise in local manufacturing,
which is driving the demand for advanced
logistics services to support the continent's
growing pharmaceutical sector.
Despite the promising growth in the
pharmaceutical sector, Africa's logistics
infrastructure remains a significant
challenge. According to the World Bank's
Logistics Performance Index (LPI), Sub-
Saharan Africa was rated 2.45 out of 5
in 2018, indicating an urgent need for
improved logistics networks, especially
in the healthcare sector. Currently, the
region is unable to meet its domestic
pharmaceutical demand through local
production, with a vast majority of its
pharmaceutical needs being imported,
primarily from China and India.

4 LUA SEPTEMBER - OCTOBER 2024