The study was developed last year by the Botswana Investment and Trade Centre (BITC) in partnership with the European Union’s Africa RISE (Reform for Investment and Sustainable Economies) programme.
The study aims to help Botswana develop its pharmaceutical manufacturing capabilities while boosting its competitiveness at both local and regional levels. The consultancy team included three local experts from the University of Botswana who worked alongside the BITC team, reporting to a diverse reference group that validated the findings.
Data from Fitch Solutions reveals that the country’s pharmaceutical imports reached P2.2 billion in 2023, growing by 14% year-on-year. The majority of these imports, over 68%, originated from South Africa and India. The growth of the sector is largely driven by healthcare spending, which accounted for 5.8 percent of GDP in 2023, or $1.3 billion (P17.1 billion).
In 2021, medicines constituted 79.1% of pharmaceutical imports, valued at $145 million, while vaccines made up the remaining 20.9%, valued at $38 million. Human vaccines accounted for $28 million (75.3%) of vaccine imports, and veterinary vaccines constituted $9 million. The estimated size of the pharmaceutical sector in 2022 was $193 million, with a forecast of reaching $205 million or P2.7 billion by 2025.
Despite these enticing figures, the recent report has revealed that getting the country’s pharmaceutical sector running involves numerous barriers. These are delayed development, limited market vision, and a lack of sector-specific policies and regulations.
Over 90% of medicines depend on imports, creating sustainability concerns. There is also a significant gap in skills development and collaboration, hindering the growth of local manufacturing. Emerging manufacturers struggle to compete with established importers, and a lack of investor commitments further hampers sector development.
The Botswana Medicines Regulatory Authority (BoMRA) is working to build a strong regulatory framework that can foster investor trust. Achieving World Health Organisation’s (WHO) Level 3 regulation by 2024 is a key milestone for BoMRA, which would position the country to meet international standards and attract more investment into the sector.
BITC CEO, Keletsositse Olebile, says there is considerable scope for Botswana to harness emerging opportunities and position itself as a regional player in the pharmaceutical industry.
He said this requires bold initiatives to exploit the country’s biodiversity, particularly through the use of indigenous plants.
“Broadening the policy framework to encourage collaboration between traditional medicine practitioners, non-governmental organisations, the private sector, and local universities is crucial.
“Developing a national database of indigenous medicinal plants, animal derivatives, mineral salts, and their uses would be a significant step forward,” he said.
Further, he said promoting the preservation and protection of medicinal plants and conducting studies on the effectiveness and toxicity of these natural resources, could pave the way for a vibrant traditional medicine sector. Collaboration with institutions like the Companies and Intellectual Property Authority to develop targeted programmes would be essential in nurturing the growth of traditional medicines and benefiting from Botswana’s rich biodiversity.
Olebile further said ongoing engagement with the industry through collaboration is crucial to translating the recent findings into tangible results.
Initiatives such as the Team Europe programme, which focuses on manufacturing and access to vaccines, medicines, and health technologies in Africa, provide a framework for growth.
Backed by €1 billion from the EU budget and European development finance institutions like the European Investment Bank, the programme aims to create an enabling environment for local vaccine manufacturing and tackle barriers on both the supply and demand sides.
The recent report has taken the first step in laying out the challenges and opportunities. The next step is to see whether investors, both local and foreign, can come to the party.
