Ghanaian former President John Dramani Mahama has highlighted the potential of the African Continental Free Trade Area (AfCFTA) to revolutionize the pharmaceutical industry in Africa. Speaking at the 8th African Union Mid-Year Coordination Summit in El Alamein, Egypt, President Mahama emphasized that the agreement can create a unified African market of approximately 1.4 billion consumers, enabling pharmaceutical manufacturers to expand their reach beyond national borders.
According to President Mahama, the AfCFTA presents a significant opportunity for Africa to build a large, integrated market for pharmaceutical manufacturing and health products. By leveraging the continental market, Africa can attract investment, expand local manufacturing, and strengthen its pharmaceutical value chains. This, in turn, can help reduce the continent's dependence on imports and enhance its capacity to respond to future health emergencies.
President Mahama cited the African CDC's first pooled tender for maternal and child health products as a successful example of coordinated demand in strengthening the continent's pharmaceutical market. The initiative achieved price reductions of over 30%, while African manufacturers secured 50% of the product lines. This demonstrates the potential of coordinated demand to provide greater certainty for manufacturers and investors, creating sustainable markets for locally produced medicines.
The former Ghanaian President called on bankers, institutional investors, and industrial leaders to recognize African pharmaceuticals as a growing investment sector with the potential to contribute to the continent's economic transformation. By leveraging the AfCFTA to develop regional pharmaceutical value chains, Africa can retain foreign exchange and reduce its dependence on imports.
President Mahama stressed that deeper regional integration, coordinated demand, and investment in local manufacturing are critical to advancing Africa's health security and achieving greater health sovereignty. The AfCFTA, he said, provides a platform for Africa to take control of its pharmaceutical needs and develop a robust industry that can serve the continent's growing population.
The African Continental Free Trade Area has been hailed as a major step towards achieving economic integration and development in Africa. With a unified market of 1.4 billion consumers, the AfCFTA presents a significant opportunity for the continent to transform its pharmaceutical industry and become a major player in the global market.
President Mahama's call to action emphasizes the need for stakeholders to work together to develop Africa's pharmaceutical sector. By doing so, the continent can unlock the full potential of the AfCFTA and create a robust and sustainable pharmaceutical industry that serves the needs of its growing population.
Key points
- President Mahama says AfCFTA can turn Africa into a 1.4 billion-consumer pharmaceutical market.
- The AfCFTA can help Africa attract investment, expand local manufacturing, and strengthen its pharmaceutical value chains.
- Coordinated demand and investment in local manufacturing are critical to advancing Africa's health security and achieving greater health sovereignty.
