East African Community
The 1st International
High Level Multi-Stakeholders Conference on Promoting Pharmaceutical
Sector Investments in the East Africa opened today at the Laico Regency
Hotel in Nairobi, Kenya.
The
three-day conference brings together key stakeholders from EAC Partner
States including Ministries of Health, Finance and Industry, National
Medicines Regulatory Agencies (NMRAs), National Procurement Agencies
(NMPAs), AU-NEPAD Planning and Coordinating Agency, World Health
Organization (WHO), United Nations Conference on Trade and Development
(UNCTAD), United Nations Industrial Development Organization (UNIDO) and
the private sector (local and international pharmaceutical
manufacturers) as well as international development partners and
investors among others.
The
overall objective of the conference is to develop a common and shared
vision for promoting investments in the regional pharmaceutical
manufacturing sector.
In her
speech read by Mr. Barrack Ndegwa, the Integration Secretary, Kenyan
Cabinet Secretary for East African Community Integration, Labour and
Social Protection, Hon. Phyllis Kandie described the pharmaceutical
sector is a critical area of cooperation in health matters within the
EAC.
Hon.
Kandie said the conference was therefore significant as it provides a
platform for stakeholders to have a conversation among the policy
makers, industry players, the civil society, as well as social and
development partners on how to deepen cooperation in the sector.
She
disclosed to the conference that in 2014, the pharmaceutical market of
the EAC was valued at US$1.9 billion, adding that it was forecast to
grow at a compound annual rate of 8.3% to reach US$4.2bilion in 2024.
However, Kenya, which is the leading pharmaceutical producer in the
region, with approximately 50% production and rising exports, supplies
just 25% of the Kenyan market.
The CS
added that Tanzania supplies a declining share of its own domestic
medicines market, down from 35% in 2009 to less than 10%-20% today.
The
Cabinet Secretary informed the participants that despite these
developments, the Pharmaceutical manufacturers operating from within the
EAC region generally produce at a cost disadvantage to larger generic
product manufacturers internationally due to a variety of reasons
including scale, expensive asset base coupled with older technology,
higher financing costs plus a lack of integration with active
pharmaceutical ingredients suppliers.
“This
situation makes domestically manufactured medicines uncompetitive
compared to imports and the regional pharmaceutical market is therefore
dominated by imports with domestic manufacturers only meeting less
than30% of the medicines demand.”
She
called for the Development Partners and other stakeholders to support
the growth of the sector by engaging and addressing the concerns of the
domestic pharmaceutical manufacturers and potential investors.
On her
part, Hon. Josiane Nijimbere, Burundi’s Minister of Public Health and
the Fight Against AIDS, said medicines have become a very important and
powerful tool, now more than ever, in improving the health status of
populations and, in the long term, for reducing healthcare costs and
ensuring sustainable development through health working human resource.
‘’I am
therefore delighted that the East African Community has decided to hold
this conference in collaboration with our Development Partners here
present and those who have not been able to make it, raise awareness of
various stakeholders on the need to promote investment in pharmaceutical
manufacturing.’’
She
underscored the importance of the health sector for the citizens of East
Africa as the EAC integration agenda aims at improving sharply standard
of living the East African Citizenry.
“To
this effect, the development of the pharmaceutical sector and
investments is equally critical if we want to achieve the objectives of
the Community.”
The
EAC Deputy Secretary General in charge of Productive and Social Sectors,
Hon. Christopher Bazivamo said that poor performance of the EAC health
sector has contributed to shortage of essential medical products and
health technologies, which could be produced within the region by EAC
industrial sector.
“About
75% of the EAC pharmaceutical market demand is met through importation
of medical products and health technologies while 25% is covered by
domestic pharmaceutical production,” said Hon Bazivamo.
He
urged Partner States to consider implementing incentive packages to
promote domestic pharmaceutical production in the region which includes;
a uniform preferential margin of 20% for all regionally produced
medicines and medical devices in public tenders according to Article 35
of the Common Market Protocol; removal of duties for imported raw and
packing materials, pharmaceutical manufacturing related equipment as
well as spare parts for the equipment’s acquired by domestic
manufacturers registered in the EAC; and classification and import
restrictions for finished pharmaceutical products that can be produced
within the region, based on regional capacity and quality audits of
local manufacturers.
The
High Level Mult-Stakeholders Conference on Promoting Pharmaceutical
Sector Investments conference provides an opportunity and a platform for
stakeholders to discuss and agree on strategic areas and policy
incentive packages that promote EAC domestic pharmaceutical
manufacturers and foster dialogue between policy makers, regulators and
pharmaceutical manufacturers.
The Conference has been organized by the EAC Secretariat in collaboration with the EAC Partner States and Development Partners.
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