THE LOCALISATION OF MEDICAL MANUFACTURING IN AFRICA

The report analyzes the African medical manufacturing landscape, highlighting a heavy reliance on imports (over 70% for health technology) and a concentration of capabilities in North Africa, South Africa, and Nigeria. It identifies critical gaps in Active Pharmaceutical Ingredient (API) production and medical device manufacturing, while noting that vaccine production is limited to four countries. The study argues that localization is a political project requiring a shift from generic-drug business models to more complex technologies, supported by patient capital, innovative public procurement, and the establishment of specialized pharmaceutical parks. It emphasizes the need for regulatory harmonization and the development of local 'notifying bodies' for medical devices to reduce compliance costs.

• African countries are heavily dependent on imports for health technology, with more than 70% of requirements imported in the majority of countries.
• Pharmaceutical manufacturing is concentrated in three primary hubs: Nigeria (150 plants), South Africa (122), and Egypt (120). North Africa leads the continent in both the number of plants and the complexity of technological capabilities.
• Vaccine manufacturing is extremely limited, with only four countries—Egypt, Senegal, South Africa, and Tunisia—possessing these capabilities.
• There is a critical lack of Active Pharmaceutical Ingredient (API) production across the continent, creating a high concentration risk as most APIs are sourced from China. South Africa is a rare exception, producing APIs for codeine, paracetamol, and one cancer drug.
• The medical device sector is severely underdeveloped and neglected, with over 90% of devices in public hospitals being imported in most African countries.
• The dominant business model for African pharmaceutical firms is based on low-value generic drugs, often managed by family-owned SMEs. This model limits the appetite for technological upgrading and expansion into more complex, high-value innovator drugs.
• Regulatory capabilities for medical devices are scarce; the absence of local 'notifying bodies' forces companies to use European organizations, which significantly increases compliance costs.
• The pharmaceutical sector faces significant 'hard' infrastructural barriers, including unreliable electricity and potable water, which forces companies to invest in costly alternative infrastructure like diesel generators.
• Access to 'patient capital' for long-term projects (greenfield and brownfield) is a major hurdle, as commercial banks typically only lend to post-revenue enterprises.
• Innovative public procurement can serve as an active industrial policy by providing assured markets for local producers, which signals viability to investors and reduces import dependence.

APA

Banda, D. G., Mugwagwa, D. J., Mackintosh, P. M., & Mkwashi, D. A. (2022). THE LOCALISATION OF MEDICAL MANUFACTURING IN AFRICA. Institute for Economic Justice. https://iej.org.za/wp-content/uploads/2026/02/IEJ-LoMMiA-report_Nov2022.pdf

Chicago

Banda, Dr Geoffrey, Dr Julius Mugwagwa, Prof Maureen Mackintosh, and Dr Andrew Mkwashi. THE LOCALISATION OF MEDICAL MANUFACTURING IN AFRICA. Institute for Economic Justice, 2022. https://iej.org.za/wp-content/uploads/2026/02/IEJ-LoMMiA-report_Nov2022.pdf.

Wikipedia

{{cite report |last1=Banda |first1=Dr Geoffrey |last2=Mugwagwa |first2=Dr Julius |last3=Mackintosh |first3=Prof Maureen |last4=Mkwashi |first4=Dr Andrew |title=THE LOCALISATION OF MEDICAL MANUFACTURING IN AFRICA |publisher=Institute for Economic Justice |date=November 2022 |url=https://iej.org.za/wp-content/uploads/2026/02/IEJ-LoMMiA-report_Nov2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{banda2022localisation, author = {Banda, Dr Geoffrey and Mugwagwa, Dr Julius and Mackintosh, Prof Maureen and Mkwashi, Dr Andrew}, title = {{THE LOCALISATION OF MEDICAL MANUFACTURING IN AFRICA}}, institution = {Institute for Economic Justice}, year = {2022}, month = nov, url = {https://iej.org.za/wp-content/uploads/2026/02/IEJ-LoMMiA-report_Nov2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }