Ethiopia is vigorously pursuing its ambition to become Africa's leading pharmaceutical export hub. This week, top government officials and key development partners gathered at the Kilinto Pharmaceutical Industrial Park, a hub of the nation's burgeoning drug manufacturing sector, to review progress and push forward critical reforms.
Semereta Sewasew, Ethiopia's State Minister of Finance, articulated the nation's strategic vision, emphasizing significant investments in specialized industrial parks like Kilinto. These parks, she noted, offer ready-made facilities and bespoke infrastructure designed to lower initial setup costs, making Ethiopia an attractive destination for pharmaceutical manufacturers. Semereta highlighted the sector's multifaceted importance, from substituting costly imports and creating vital jobs to ensuring broader access to affordable medicines for its citizens.
Acknowledging the inevitable initial hurdles that come with ambitious projects, the state minister conveyed a clear path forward. Upcoming reforms, she explained, will zero in on enhancing the regulatory landscape, streamlining the often-complex drug approval processes, and aligning national standards with regional frameworks. These steps are crucial, she underscored, for boosting investor confidence and significantly expanding Ethiopia's pharmaceutical export capacity.
Beyond regulatory adjustments, the government is rolling out a suite of incentives. These include attractive tax breaks, exemptions on duties, and access to subsidized electricity—all aimed at fostering a robust manufacturing environment. Furthermore, there's a strong focus on skills development and cultivating public-private partnerships to advance local production capabilities.
The World Bank's commitment to Ethiopia's pharmaceutical aspirations was strongly reaffirmed by official Maryam Salim. She noted Ethiopia's inclusion among just five global priorities for pharmaceutical development. "We're placing our bets on Ethiopia," Salim declared, pledging the bank's continued and unwavering partnership.
During their visit, the delegation toured Africure Pharmaceuticals, a key player within the park. Dr. Tadesse Teferi, Africure's CEO, seized the opportunity to advocate for increased financing. He stressed the urgent need to bridge working capital gaps, which he sees as essential for sustaining operations and propelling export growth.
Dr. Fisseha Yitagessu, CEO of the Industrial Parks Development Corporation (IPDC), candidly identified critical infrastructure deficits, such as reliable energy supply and efficient waste management. Addressing these gaps, he asserted, is paramount for ensuring consistent and compliant pharmaceutical production. Both Dr. Fisseha and other officials stressed the collective need for sustained investment and continuous logistical improvements across the entire pharmaceutical value chain, FBC learned.
The Ministry of Finance concluded the gathering by reiterating its full backing for the sector's expansion. They called upon crucial partners like the World Bank and the International Finance Corporation (IFC) to fortify their long-term support. Officials expressed confidence that a thriving pharmaceutical industry in Ethiopia could not only meet national needs but also serve as a powerful blueprint for the nation's broader industrial ambitions.