Healthcare Industry has a bright future as its growing globally at an average rate of 7% per annum. Healthcare as an industry includes equipment as well as Pharmaceutical products. The global market in 2017 was US $ 935 billion and is projected to reach the US $ 1170 billion growing at a rate close to 6%.
African Pharmaceutical market is in the growing stage and a new company needs to look into the following factors before entering this market.
African is surrounded by water on all sides. This continent is bounded by the Mediterranean sea, Atlantic Ocean, Indian Ocean, and the Red Sea. Africa has abundant physical regions like mountains and highlands, Rain forest. Such diverse ecology becomes home to various plants and animals. Presence of various insects, moisture facilitates the growth and spread of diseases.
Cited in a report by the World Bank Group in Ease of Doing Business, African countries like Rwanda, Nigeria, Mauritius, Kenya, Ghana, etc. are charting up with numerous reforms in the field of providing infrastructure, enforcing contracts, starting a business and property registration. They hold a record of around 107 reforms in 2018 which can help them to offer a proposal to the immigrant companies.
The overall economic growth of Africa is slow pacing but has maintained an annual growth of 2.5%. However, Ethiopia, Ghana and Rwanda have better economic growth.
The average poverty rate flies around 40%. With the aid from Institutions like the European Union, African Development Bank, European Investment Bank, etc. the African government has managed to maintain its key industries to keep its economy in motion.
Social Condition of Africa is still improving. The government has been inquisitive for various steps that could be taken to improve the reach and quality of education, healthcare, and food to its young citizens. This step will not only build dependable shoulders for the nation but also a structured society. Equal chances of employment for both Male and female encourages equal opportunity and wages earned.
African corporate law is very much transparent, eloquent and in favor of businesses. A good company law can be an assurance of a healthy and competitive business environment along with wide range of pharmaceutical machineries.
Based on the above mentioned important PESTLE factors (Political, Economical, Social, Technological, Legal and Environmental) the pharmaceutical industry in Africa seems to be quite interesting for Pharma companies to establish itself and enjoy the business. With the low cost of investment in infrastructure, labor and inventories and benefits from the government the Pharmaceutical companies have a great road ahead to prosper.
As mentioned earlier the market, the machines like automatic capsule filling machine is supposed to be upward moving. The market is predicted to be ranging between 40 to 60 billion dollars. Despite a huge demand the continent imports medicines from other nations, this could be another latitude for companies. The scope of starting an R&D wing along with the company's manufacturing plant will create a path towards a better and new scientific Africa.