Tanzania: growth opportunities from generics

The pharmaceuticals market in Tanzania presents significant growth opportunities for local companies. Generic drug production is driving  prices down, resulting in higher uptake, according to a new analysis  from Frost & Sullivan, which finds that the pharmaceutical market earned  revenues of $105.0 million in 2007 and estimates this to reach $188.0  million in 2014.

"Growth in the Tanzanian pharmaceuticals industry will be boosted by the  expected decline in drug prices, due to the increased availability of  generic drugs," comments F&S research analyst Ishe Zingoni. "This would  facilitate higher uptake of drugs and promote the local manufacturing  industry," he adds.

Government support has been crucial in stimulating the infant local  pharmaceuticals sector. Localization of drug manufacturing is driving  prices of some drug classes down, and as the industry reaches sufficient  economies of scale, prices are predicted to further decrease. The main  restraint in this market is the intensifying level of competition from  low-cost imports. Local manufacturing is also hindered extensively by  the lack of technical skills in production.