Opportunities in Pharmaceuticals
Uganda combines a growing pharma market with access to the EAC market of 175 million people. With relatively high levels of skills and education and an investor-friendly environment, Uganda is a burgeoning pharmaceuticals centre.
Why Uganda ?
- Uganda has a large domestic market with demand for edible oils expanding rapidly (Uganda’s imports of edible oils increased more than five-fold to over $ 30 million in 2017).
- Member of EAC, which had recorded ever imports of edible oils in 2017, with 50% growth reaching nearly $1 billion.
- Uganda has a strong track in the production of agricultural products and is the most open trading country in the region.
- 35% of Uganda’s land is arable and suitable for growing edible oil seeds. such as sesame, soya bean, and sunflower.
Strength of the Pharma sector in Uganda ;-
- In 2018, there were over 300 life sciences companies and over 30 pharmaceuticals and medical devices manufacturing companies in Uganda {Source: fDi Benchmark from the Financial Times Limited).
- These companies currently manufacture 173 pharmaceutical products in Uganda {Source: Uganda National Drug Authority).
- Uganda is highly specialised in pharmaceuticals; the chemical sector (which includes pharmaceuticals) accounts for over 10% of Uganda’s manufacturing value added – the highest in the region.
Medical Consumables - Medical consumables is a rapidly growing segment of Uganda’s healthcare sector. In 2017, the import of medical consumables in Uganda grew by over 60% compared to 6% growth in Sub-Saharan Africa as a whole.
- Total medical consumables imports into EAC are averaging over $250 million per annum with Uganda the fastest growing market.
- There is strong investment potential to produce cotton-based consumables in Uganda including wadding, gauze, bandages and surgical cotton wool. Raw materials can be sourced
locally given Uganda’s comparative advantage in cotton production.
- There are also opportunities to manufacture medical supplies and instruments which have strong market.