Chinese pharma firms expand footprint in Africa
Over 80% of Africa’s pharmaceuticals are imported due to limited local production
On the outskirts of Abidjan, the commercial capital of Côte d’Ivoire, a new pharmaceutical plant is in the works. Set to open later this year, the factory is being built by Fosun Pharma – one of China’s biggest drugmakers – and forms part of a broader surge in Chinese investment across the African pharmaceutical sector. Amid rising demand for generic medicines and treatments for chronic illnesses, Chinese firms are moving in to plug the continent’s manufacturing shortfalls.
Fosun’s new facility will manufacture anti-malarial drugs and antibiotics, with output intended for export to 17 French-speaking African countries. Once all three construction phases are completed, the plant is expected to produce up to 5bn tablets annually.
The African health sector is primed for growth. The continent is home to 17% of the world’s population but carries 25% of its disease burden. Yet, 99% of all vaccines and 70% essential medicines are imported. The African medicine and vaccine market is currently worth US$50bn but is expected to grow to US$259 bn by 2030. While health spending per capita in Africa was less than US$35 in 2019 – compared to the global average of US$160. Some Chinese companies may see this as an opportunity. In China, per capita health spending increased from US$42 in 2000 to US$535 in 2019. For African countries, Chinese investment offers an opportunity to lessen dependence on imported medicines, build up domestic manufacturing, and address critical health needs.
In Nigeria, China’s Jiangsu Aidea Pharma and Nanjing PharmaBlock recently partnered with local company Fidson Healthcare to build a US$100m plant that will focus on producing antiretroviral drugs. Despite a population of more than 235m, Nigeria continues to import all of its HIV medication. Elsewhere on the continent, Africa Bio Chem – a Chinese pharmaceutical firm – has signed an agreement with the Zanzibar government to set up a facility for advanced drug and vaccine production. In Zambia, Jijia International Medical Technology signed an agreement in 2024 to build a cholera vaccine plant to manufacture an innovative oral capsule developed by the Chinese Academy of Military Medical Sciences. These firms are joining more established players, such as Humanwell Pharmaceuticals, which invested in a factory in Bamako, Mali nearly a decade ago.
The African pharmaceutical market alone is expected to grow by 5.13% annually and reach US$34bn by 2027. Growth will come across all major categories, led by generic drugs (10% annual growth), followed by over-the-counter (OTC) and prescription drugs at 7.1% and 6.5% respectively.
Chinese firm Sansheng Pharmaceutical says it has significantly reduced Ethiopia’s reliance on imports. Its factory in Addis Ababa produces various essential medicines in injectable, tablet, capsule and infusion forms. According to the company, many of these products were previously sourced from abroad, but local production now covers much of national demand, with Sansheng as a key supplier.
At the 2024 Forum on China-Africa Cooperation, Chinese President Xi Jinping reiterated his government’s support for Chinese investment in Africa’s pharmaceutical sector. Some industry observers note that Chinese firms are drawing on their experience in producing medicines at scale and at prices that are accessible to African consumers – while still turning a profit, though often at margins lower than those typically accepted by Western companies.
References
‘Realizing Africa’s potential,’ Prof Landry Signe, Brookings Institution
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