May 20, 2011
Noncommunicable diseases drive lucrative West Africa pharmaceuticals marketBack
Frost|Ghana|Nigeria|USD|Annual Pharmaceuticals Industry Revenues|Pharmaceutical Industry|Pharmaceuticals Industry|Treatment For Diabetes|Chronic Medicines|Communicable And Noncommunicable Diseases|Diabetes|Hypertension|Non-communicable Diseases|Tinotenda Sachikonye|Anti-infectives
© Reuse this
With the adoption of a more western lifestyle, characterised by less healthy diets and more sedentary activities, across West African countries like Nigeria and Ghana, the incidence of non-communicable diseases, particularly hypertension and diabetes, have increased, reports market research and consulting firm Frost & Sullivan.
As the demand for chronic medicines for these conditions surges, lucrative market opportunities, particularly in the generics market, have opened up.
Analysis indicates that the pharmaceutical industry in Ghana and Nigeria earned revenues of $970-million in 2009, and Frost & Sullivan estimates this will reach $2,3-billion in 2016.
“The dual burden of communicable and noncommunicable diseases in Ghana and Nigeria is the main driver for growth of the pharmaceuticals industry in the region,” notes Frost & Sullivan research analyst Tinotenda Sachikonye.
“Second and third, only to anti-infectives, in terms of contribution to the 2009 annual pharmaceuticals industry revenues in Ghana and Nigeria were medicines for cardiovascular conditions and diabetes.”
Treatment for diabetes and cardiovascular conditions, such as hypertension, is typically chronic, thereby creating a continual demand for diabetes and hypertension medicines. Several foreign generics companies have entered the West African market and more local manufacturers are focusing on medicines to treat hypertension and diabetes.
However, as the major proportion of consumers in Ghana and Nigeria are price sensitive, competition with low-cost Asian generics is a challenge for the majority of participants in the market. The cost of conducting business for local manufacturers is particularly high.
“Price is an important purchasing criterion for the Ghana National Health Insurance (NHI), which covers 66,4% of the population in Ghana. The NHI will only pay for generics,” explains Sachikonye. “Further, government tenders in both countries are awarded mainly on the basis of price.”
It is important that companies in this market identify their target customers and differentiate themselves accordingly. Although the majority of consumers in the region are price sensitive, several others are brand loyal and willing to pay the cost for their preferred brands, he says.
“Although pricing is a major determinant of success in Ghana and Nigeria, other factors, such as having good-quality products, having a robust distribution network, good marketing strategies and brand recognition, are equally important. Pharmaceuti-cals companies can leverage these factors to attain a competitive position in the market,” concludes Sachikonye.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines
Other Medical and Pharmaceutical Engineering News
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...
Nissan will re-enter the South African minibus taxi industry in March, when the new NV350 Impendulo goes on sale. The 16-seater has been specifically tailored to meet the terms of government’s Taxi Recapitalisation Programme, which aims to replace South Africa’s...