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Federation of East African
Pharmaceutical Manufacturers (FEAPM)
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Yearbook
2012
Federation of East African
Pharmaceutical Manufacturers (FEAPM)
Table of Contents
Acknowledgements 5
Quality Infrastructure for the Pharmaceutical Sector in the East African Community 33
4
Acknowledgements
We extend our gratitude to BMZ/GIZ for sponsoring the production of this FEAPM Yearbook 2012. We
thank the EAC/GIZ TRIPS and Pharmaceutical Sector Promotion project and look forward to working
with the EAC/GIZ program Support to the EAC Integration Process in its next phase (2013-2016).
We are grateful to all other cooperation partners of the EAC Secretariat and the EAC Partner States
who have been involved in various projects in support of the regions pharmaceutical industry: UNI-
DO, UNCTAD, WTO, WHO, WB, BMGF, GCC, NEPAD, GOPA, London School of Hygiene and Trop-
ical Medicine, ANDI, South Centre, EANNASO, EACSOF, SEATINI, HAI Africa, EAC, EAHF, Action
Medeor.
Our thanks go out to all authors who have contributed to this yearbook:
Wesley Ronoh, Michelle Maunga, Mboi Evans Misati, Rainer Engels, Frank Schmiedchen, Moses Mu-
lumba, Kathryn Boateng, Nazeem Mohamed, Dhirendra Shah, Sillo Hiiti, Dominik Berger, Kiumbura
Githinji, Lynda Waka, Tobias Diergardt, Thomas Walter, Kay Weyer, Roland Kaestner, Kaale Elian-
girira and special thanks to Max Walter for his contribution to various sections of this Yearbook and
for his persistence and professional editing of the entire document.
We thank journalists Zephania Ubwani, Moses Walugembe Tusubira, Fiona Mbabazi, Havyarimana
Musa for their input and especially George Omondi for his contribution on Kenya and his editing
work of all the journalists contributions.
Last but not least, we are grateful to MEDIA DESIGN for their creative layout design and coordination
of the printing.
It gives us great pleasure to introduce to you to take responsibility for the implementation of
our first Federation of East African Pharmaceu- the plan, which shall guide the EAC in fostering
tical Manufacturers (FEAPM) Yearbook. We are an effective and internationally competitive re-
pleased to report a number of milestones the gional pharmaceutical manufacturing industry.
federation has achieved since its formal launch
in December 2011. The first accomplishment of Beyond this, the Federation has been a contrib-
the Board of Directors was the setting up of a uting participant in relevant regional, pan-Afri-
secretariat at the East African Business Council can and international meetings as well as being
(EABC). The federation now has a dedicated actively involved in the establishment of the
member of staff with other critical support ser- Federation of African Pharmaceutical Manufac-
vices being provided through the EABC. turers Associations (FAPMA) and the Pharma-
ceutical Manufacturing Plan of Africa. Finally,
FEAPM has since worked closely with its part- FEAPM members are benefiting from training
ners to increase visibility and provide value- on Good Manufacturing Practices (GMP) in
adding services to the membership. An inter- collaboration with GIZ, such as a workshop on
active website, www.feapm.com, was set up in GMP audit and self-inspection carried out by
order to strengthen the Federations online pres- Action Medeor in Arusha in October 2012.
ence and to provide an effective platform for in-
formation exchange with all stakeholders. The We therefore note with satisfaction that the fed-
website is currently being improved to better eration is growing in vibrancy and delivering
deliver the online services. To complement this, on its mission to provide valuable member-
the Federation collaborated with GIZ, UNC- ship services and become a key stakeholder in
TAD and UNIDO to establish a virtual platform, the pharmaceutical sector in Africa and globally.
www.local-pharma-production.net, an informa- Looking ahead, we are confident that FEAPM
tion and communication hub on local pharma- will continue to play its rightful role in influ-
ceutical production in Africa. encing regional and national policies towards
creating an enabling and globally competitive
In the area of service provision to members, a environment for local pharmaceutical manu-
number of successes were achieved during the facturers, with the ultimate goal of increasing
year. The Federation held its inaugural Annual access to quality and affordable medicines for
General Meeting (AGM), in which the Board of the people of our region. At a broader level, the
Directors was appointed. The meeting also iden- Federation will continue working with other
tified priority intervention areas for the regional stakeholders in the region to promote a fully
pharmaceutical manufacturing sector for ad- functional customs union and common market
vocacy and lobby efforts. A number of FEAPM for the benefit of all.
position papers have since been developed. We
are pleased to note that one such paper, which As we conclude, we particularly wish to thank
proposes the adoption of proven interventions members for making their contributions through
from Ghana to strengthen self-reliant, sustain- the subscription fee, and urge them to maintain
able local production of essential medicines in this cooperation so that the Federation may sus-
East Africa, is reproduced in this yearbook. tainably deliver on its mandate. We also express
our sincerest gratitude to the EAC-GIZ Pharma-
At the Federations third Stakeholder Meeting in ceutical Sector Promotion Project, UNIDO and
December 2011, the EAC Regional Pharmaceu- EABC for their continued support.
tical Manufacturing Plan of Action (RPMPOA)
2012-16 was launched after it had been drafted Chairman: Ramadhan R. Madabida
and validated by various stakeholders. An EAC- Director: Dr. Dhirendra Shah
RPMPOA Steering Committee was established Director: Nazeem Mohamed
6
FEAPM Annual Report
Having established an active company by the 4. The Forum also advocated for the imple-
end of 2011, FEAPM was ready to take up its mentation and utilisation of TRIPS within
mandate. The following are the major activities the region
that the Federation undertook in 2012:
FEAPM was also involved in the constitution
drafting process and launch of FAPMA (Federa-
Development of FEAPM communication and tion of African Pharmaceutical Manufacturers
networking tools Associations). This was a huge milestone for the
In order to facilitate fast and effective communi- Federation with regard to future networking
cation between the Federation Secretariat, mem- and advocacy opportunities considering the fact
bers and the outside world, it was necessary to that FAPMA is now the Pan-African pharmaceu-
develop some formal tools of communication. ticals manufacturers body.
The Federation thus came up with an official
website which provides members with informa- Through its members and directors, the Federa-
tion regarding its activities. An informative bro- tion has produced its first major position paper.
chure highlighting FEAPMs mandate and scope The paper draws inspiration from the policies
of operation was also designed, printed and dis- adopted by Ghana to deal with counterfeit phar-
seminated. maceutical products and foster growth for the
local pharmaceutical manufacturing companies
in the country. Referred to as Learning from
Advocacy the Ghana Model, this paper provides specific
From the outset, FEAPM has endeavoured to legislation on import control, procurement and
raise awareness of the issues affecting its mem- taxation implemented in Ghana to curb sub-
bers and lobby for plausible and opportune in- standard pharmaceutical products and support
terventions to address their challenges. To this local manufacturers. Such legislations included
end, FEAPM sought representation in various tax abolitions on raw materials and quotas on
forums in which pharmaceutical industry chal- certain imports. The paper further ties these leg-
lenges were discussed. One of FEAPMs direc- islative and policy changes to the tremendous
tors, Mr. Nazeem Mohammed, attended the expansion of Ghanas pharmaceutical indus-
European Generic Medicines Association 2012 try and provides statistical evidence. Using the
Conference in Malta. He was able to project the Ghana experience, the Federation has developed
challenges of local pharmaceutical manufactur- the East African Model for supporting local
ers in East Africa as well as lobbying for inves- pharmaceutical manufacturers, addressing price
tors within the European Union to support local preferences, tax incentives and import classifica-
manufacturing activities in the East Africa. tions among other issues affecting local manu-
facturers within EAC Partner States.
Additionally, FEAPM participated in the EAC
Secretary General Forum with Private Sector
and EAC Civil Society Organisations held in De-
cember 2012 in Dar es Salaam. This platform was
used by FEAPM under the auspices of the East
Africa Health Forum to raise the following four FAPMA VISION
key issues affecting local pharmaceutical manu- To facilitate collaboration
facturers: between regional pharmaceutical
manufacturing associations to address
1. Fast-tracking implementation of EAC Com-
mon Market Protocol to facilitate cross bor- the common challenges faced by the
der establishment of East African pharma- industry and enhance opportunities
ceutical industries towards self-sufficiency. This will
2. Fast-tracking of regional harmonisation of be achieved through advocacy and
drug registration and regulation procedures
partnership with other stakeholders in
and guidelines
3. Provision of enabling environment for lo- promoting the production of quality,
cal manufacturers by governments of EAC affordable medicines
member countries, e.g. zero-rating of phar-
maceutical manufacturing inputs and spare
parts
8
FEAPM plans to develop more papers in the FEAPM AGM
coming year to ensure that the issues affecting The FEAPM Secretariats activities have been
the industry are well articulated and commu- closely guided and monitored by the directors,
nicated to the policy makers within the region. members and sponsors. On 20th April 2012, the
FEAPM also intends to carry out more advocacy Federation successfully held its first Annual
activities in 2013. General Meeting (AGM). During this forum,
members elected into office the new Chairper-
Establishment of the son of the Federation, Mr. Ramadhan Madabida,
East African Health Forum and other officials. Moreover, they were present-
The East African Business Council (EABC) and ed with the FEAPM business plan, activities and
the East Africa Civil Society Organisations Fo- budget. Finally, directors and auditors were ap-
rum (EACSOF), the regional apex associations pointed and reporting guidelines for the Federa-
for the private sector and civil society, initiated tion were agreed upon.
the establishment of the EAC Regional Health
Forum in order to promote and facilitate the In addition, the Federation held an extraordi-
management of health delivery systems and bet- nary AGM on 1st November 2012. During this
ter planning mechanisms that will enhance the meeting, the members discussed the financial
efficiency of healthcare services within the EAC status of the Federation, including the remit-
Partner States. FEAPM and the East African tance of membership subscription fees. Mem-
Health Federation were the constituents under bers also adopted the position paper The East
EABC that helped to establish this forum on 27th African Model.
March 2013. It is expected to provide an instru-
mental platform for advocacy and policy influ- Participation in Conferences
encing in the overall EAC health sector, pharma- In 2012, FEAPM sponsored one of its directors,
ceuticals included. Mr. Nazeem Mohammed, to attend the Europe-
28,123 Lunga Lunga Road, Industrial Area, P.O.Box 32040 - 00600 Nairobi, Kenya,
9
MID -SIZED COMPANIES
BUSINESS DAILY KPMG
Federation of EastTel: 536229/30/32,
African 557808/2812, 020-2015228,
Pharmaceutical Manufacturers0720 333829 / 0734 333829
(FEAPM) / 07522012
| Yearbook - 829333
CLUB 2012 Email:info@biodeal.co.ke
an Generic Medicines Association Conference. First, a scoping study was administered within
The Federation also participated in the Nairobi the five EAC Partner States between March and
Pharma Expo to create awareness of its activi- April. The surveys main objectives were:
ties.
n o identify key pharmaceutical sector stake-
T
In addition, the Federation was represented in holders (existing and potential) in each EAC
the Federation of African Pharmaceutical Manu- Partner State;
facturers Associations (FAPMA) meeting held in n To identify key issues of concern to the vari-
Ghana, at which the FAPMA constitution was ous stakeholder categories, especially manu-
critiqued, reviewed and redrafted. facturers, distributors and importers; and
n To generate recommendations on the strate-
In 2013, the Federation is set to offer extensive gic and operational orientation of the EAC
training programs to promote competence Pharmaceutical Platform.
among members on Good Manufacturing Prac-
tices (GMP) and other critical elements of phar- A report from this scoping study was presented
maceutical manufacturing. The first of these, to stakeholders within the pharmaceutical in-
the WHO-GMP Prequalification training, has dustry in May 2012, which eventually led to the
already been successfully completed in three formation of the Pharmaceutical Platform that
phases in January, February and March 2013 re- later evolved into the East African Health Plat-
spectively. form.
Resource mobilisation
FEAPM would not have been able to undertake
all of its 2012 activities without the support of its
partners. In particular, GIZs TRIPS and Phar-
maceutical Sector Promotion project sponsored
all FEAPM meetings, supported the acquisition
of office space and financed EABCs administra-
tive intern. The trainings as well as the FEAPM
Yearbook have also been supported by the GIZ
project. During the AGM, it was decided that
FEAPM would carry out lobbying and advocacy
activities to obtain more funds from diversified
sources. FEAPM already succeeded to secure
additional funding from UNIDO for the next
two years, mainly for capacity building activi-
ties. The process of resource mobilisation is nev-
ertheless on-going and the Federation hopes to
partner with more donors as well as engaging
in innovative fundraising activities in the com-
ing year, including the development of valuable
fees based services in order to generate income
beyond membership fees.
Industry Surveys
10
The pharmaceutical sectors of East Africa are This was to include a section in which companies
characterised by a wide range of different actors and organisations can present themselves.
operating in different environments and under
varying circumstances in regulation, infrastruc- The German Government, in partnership with
ture and market determinants. This diversity UNIDO and UNCTAD, developed an internet
demonstrates the liveliness of the industry and platform which offers a wide variety of informa-
the determination of the private sector in the re- tion, especially on Intellectual Property Rights
gion. At the same time, however, it poses a chal- (IPR) and the flexibilities for Least Developed
lenge for companies or organisations not yet en- Countries (LDCs) granted in the Trade Related
gaged in the sector, as a comprehensive overview Aspects of Intellectual Property Rights Agree-
is not easily obtained. ment (TRIPS) of the World Trade Organisation
(WTO). It was developed in close cooperation
This problem was identified at the International with NGOs, the regional associations and other
Conference on Local Pharmaceutical Manufac- stakeholders, incorporating their ideas and sug-
turing in Cape Town, South Africa, in early 2011. gestions. The website has been online since De-
To overcome this inefficiency, it was decided by cember 2011.
a broad range of stakeholders, including the re-
gional associations, representatives of the private One of the main aims of the platform is to create a
sector, supporting organisations and government knowledge hub for all stakeholders in the region-
representatives, to create a central information al production of pharmaceuticals. Companies are
hub serving as a marketing and information tool. given the opportunity to present themselves on
the website, so that interested investors, buyers
and supporting organisations can quickly attain
an overview of the sector and its actors, obtain a
basic impression of the economic activities and
use the provided contact information to liaise di-
rectly with the companies.
Challenges
Funding is the major impediment to FEAPM activities and only one donor, GIZ, has been actively in-
volved in supporting FEAPM start-up and operational activities. Additionally, not all members have
remitted their annual subscriptions. Without adequate funding, the Federations future is at stake. It is
imperative that FEAPM finds supplementary funding to implement its activities and grow to greater
heights.
The FEAPM Secretariat is currently understaffed as it lacks the financial capacity to hire more work-
ers. To date, the Federation has employed only one person who facilitates all of its activities. The Fed-
eration shall need to expand well beyond the current funding and staffing levels in order to deliver
optimal services to members.
Although the Federation aspires to be the leading voice of pharmaceutical manufacturers in the East
African region, effective formal engagement with the EAC Secretariat and national governments is a
challenge. This is mainly due to existing mistrust between the public and private sector organisations
in the region. However, this is likely to change for the better as the regional and national governments
embrace public-private partnerships in the promotion of socio-economic development. It is hoped that
the recently approved EAC institutionalised dialogue framework for the private sector and civil soci-
ety organisations in the regional integration process, as well as the SG Forums, will provide the neces-
sary platforms for FEAPM to advance its advocacy agenda. Finally, shortcomings in the implementa-
tion of EAC Council decisions and agreed regional strategies continue to hamper the full exploitation
of the EAC Common Market opportunities for the benefit of all.
Income US$
a) Membership Subsciptions (FKPM) 5.965,00
Membership Subsciptions (UPMA) 2.997,00
b) GIZ Support 36.456,42
Total Income 45.418,42
Expenditure
a) Salary and Allowances 10.750,00
b) Operating Costs
Retainer Fee 1.000,00
Office Renting 6.000,00
Traveling Costs 12.868,81
Postal 45,00
Capacity Building FEAPM Staff 1.080,00
Membership at EABC 1.000,00
Promotional Material 2.500,00
Annual General Meetings 5.950,00
Web Transfer and Hosting 118,00
Bank Charges 40,00
Total Expenditure 41.351,81
Fund Surplus for the Period 4.066,61
12
WTO-TRIPS Public Health Related Flexibilities: Opportunities for
Pharmaceutical Manufacturers in the East African Community
The sections that follow highlight some PHF and the PSs. The generic manufacturer therefore
the opportunities they present under the area of does not have to undertake separate clinical
the pharmaceutical sector that they have the most trials (and other market approval preparato-
impact on. ry activities), present its own dossier, or pay
any compensation to the innovator manu-
Facilitating Research & Development facturer.
(a) D
isclosure Requirements: Pharmaceutical (d) Marketing Approval (Bolar Exception): Al-
patents contain information fully disclosing lows PMs who wish to manufacture gener-
new pharmaceutical technologies (processes ics after the expiry of patented pharmaceu-
and products). It is estimated that 30% of all ticals to embark on R&D activities related
expenditure incurred in developing new to marketing approval without infringing
technical processes and products could be on patent rights. This is to facilitate earlier
saved if information contained in patent entry of the generics into the market imme-
documents was utilised. The PMs have an diately upon patent expiry.
opportunity to readily access, preferably via
their PSs patent offices, information from Encouraging Technology Transfer
countless pharmaceutical patents available
in patent offices worldwide, and use them (a) Transitional Periods: PMs may access pat-
for further R&D, avoiding research dupli- ented pharmaceutical technologies in any
cation and thereby saving money. This will part of the world, preferably via patent of-
enhance local innovation and production in fices, and utilise them to manufacture gener-
the pharmaceutical sector. ics without infringing on the patents and/or
without paying any loyalties to the patent
(b) R
esearch Exemption: Accords Members right holder, since patents are not enforce-
the flexibility of using patented inventions able in the respective LDC PSs.
for purposes of research. PMs thus have the
opportunity to use patented pharmaceuti- (b) Voluntary Licensing: Avails an opportunity
cal technologies to advance R&D activities for the PMs to freely approach owners of
without infringing on any patent rights. patented pharmaceutical technologies for
appropriate voluntary licenses to manufac-
(c) T
est Data Protection: This also applies ture generics under terms and conditions
where innovator drugs already have market stipulated in the license, as agreed by both
approval in a PS. The PMs have an oppor- parties.
tunity to manufacture generics and rely on
test data of innovator drugs for the market-
ing approval of the respective generics in
14
(c) C
ompulsory licensing: Allows PMs who fail censing is involved since un-patented technolo-
to acquire a voluntary license at reasonable gies are free-for-all technologies. Pharmaceutical
terms and conditions to access the patented products manufactured in the PS through this
pharmaceutical technologies in any part of method may be exported to other PSs or countries
the world and subsequently utilise them to where the respective product is also off patent, or
manufacture generics under terms and con- that allows an appropriate parallel importation.
ditions determined by the PSs authorities Information regarding such technologies or prod-
issuing the compulsory license. ucts may be obtained from the PSs patent offices.
Proposed Model for the Growth of the East African Pharmaceutical Manufacturing Sector
Background
This Model is based on the Government of 1. Eliminate or reduce the high level of sub-
Ghanas interventions in supporting its local standard and counterfeit medicines on the
pharmaceutical manufacturers. The Ghana market in Ghana;
Model has proven to be successful in 2. Grow the local pharmaceutical manu-
developing a very healthy local industry facturing industry and thus reduce the
which has reduced the reliance on imports reliance on imports.
and the prevalence of counterfeit products in
the market.
Key Features of the Policy
In the mid 1980s the Ministry of Health in
Ghana was very concerned about the Price Preference
proliferation of counterfeit and sub-standard A preferencial margin of 20% for all locally
medicines in the country. Their research produced medicines and medical devices in
national tenders
indicated that these types of medicines were
mostly imported into the country. Concurrent-
ly, there was pressure on the Government to Tax Incentives
support local production of essential drugs No duties on imports of raw and packing
material, pharmaceutical manufacturing related
which was in a nascent stage at that time. equipment as well as spare parts for this
The Government set about developing a equipment
policy to address the above issues.
Category Feature
Finished product imports List of finished products that are NOT allowed to be imported, initial list included 14
banned products. These were products manufactured by more than one local company with the
right quality and in quantities necessary.
Finished product imports A large list of finished products which could be imported but the following taxes need to be
allowed but taxed paid:
Import duty 10%
VAT 12.5%
NHI tax 2.5%
Others 5.0%
Total 30% (VAT not re-claimable)
Finished product imports A list of products that can be imported without any tax. These were mostly specialized
allowed with no tax products that local companies could not produce and had no immediate plans of producing.
P a g e | 1/2
16
FEAPM Position Paper
Proposed Model for the Growth of the East African Pharmaceutical Manufacturing Sector
The Policy Impact Most of these companies have at least one major
brand that is on the banned for imports list of
The policy has been implemented for over 20
products and this has served as the main source
years in which time positive effects have been
of income for further development of the industry.
achieved in the following areas (related to the
As local companies have become stronger they
local pharmaceutical sector):
are better able to compete with importers, e.g.
despite the Affordable Medicines Facility for
Counterfeit/Sub-standard Products
malaria (AMFm) programme of subsidies, several
Since the implementation of this policy there company brands of ACTs have managed to
has been a significant reduction in the remain competitive. For the future, the Ministry of
prevalence of sub-standard and counterfeit Health in Ghana plans to increase the products on
products. The share of local products has the banned list with the aim of local products
increased to around 30% of the total contributing around 50% of all products consumed
medicines used in Ghana. These facts in the country.
suggest that sub-standard products were
primarily coming from outside of Ghana as Conclusion
imports.
The Ghana Model has achieved its combined
Growth in Local Pharmaceutical goal of reducing sub-standard products in the
Production market and also supporting the growth of local
In 1989 there were only 9 manufacturing manufacturers. The model accepts the need for
imports but also recognizes the importance of
companies, today there are 35; developing a home industry in the very strategic
The pharmaceutical industry currently sector of Health.
employs approx. 3800 persons directly;
Most importantly, the EAC has already adopted
Three companies are listed on the Ghana
the EAC Regional Pharmaceutical Manufacturing
stock exchange; Plan of Action (RPMPOA) and the EAC TRIPS
Three companies are in the process of Policy in a bid to strengthen and promote local
attaining WHO approval; pharmaceutical production. The implementation of
Several of the companies export their these policies will synergize and harness existing
products within the West African Region; national, regional and international initiatives
towards strengthening local production of
One Company manufactures active phar-
pharmaceuticals.
maceutical ingredients (APIs);
Several companies have partnered with
multi-nationals to manufacture products;
One Company manufactures ARVs.
FEAPMs Position
The EAC should use the Ghana Model as tactical evidence for the strategic EAC
Regional Pharmaceutical Manufacturing Plan of Action (RPMPOA). The EAC and its
Partner States can promote local pharmaceutical manufacturing through a balanced mix
of similar policy measures regarding procurement, taxation and import control:
Specifically;
20% price preference should be awarded to local manufacturers within the region
All raw materials used in pharmaceutical manufacturing should be zero rated for
tax purposes
Partner States should restrict importation of key finished products that can be
produced locally in the right quality and quantities.
In the context of the EAC Common Market, these measures need to be developed and
enforced in a harmonized and coordinated manner.
P a g e | 2/2
Background
The East African Community (EAC) is commit- 1. Promotion of competitive and efficient phar-
ted to promoting access to affordable, quality es- maceutical production;
sential medicines, including those for the treat- 2. Facilitation of increased investment in phar-
ment of various priority communicable diseases maceutical production;
such as HIV/AIDS, Malaria, Tuberculosis and 3. Strengthening of pharmaceutical regulatory
Neglected Tropical Diseases (NTDs) as well as capacity;
non-communicable diseases including Diabetes, 4. Development of skills and knowledge for
Cardiovascular Diseases, Chronic Respiratory pharmaceutical production;
Diseases and Cancers, among others. However, 5. Utilisation of TRIPS flexibilities towards im-
the provision of safe, efficacious and affordable proved local production of pharmaceuticals;
essential medicines and other quality health and
commodities to the people of the EAC remains 6. Mainstreaming of innovation, research and
a major challenge due to inadequate local pro- development.
duction of pharmaceuticals and an overreliance
on the importation of finished pharmaceutical Representatives of the Ministries of Health and
products and related health supplies from out- Industrialisation from each of the five Partners
side the region. States, along with private sector representation,
constitute the EAC Steering Committee, which
Fostering the capabilities of the local pharma- manages the implementation of the EAC-RPM-
ceutical industry is not only crucial in address- POA at the regional level. The EAC Industri-
ing this gap in access to medicines, but would alisation Policy and Strategy complements the
also contribute substantially to the achievement RPMPOA in that it has prioritised the regional
of industrial and economic development objec- pharmaceutical industry among sectors to be
tives in the EAC Partner States. promoted through collective efforts by the EAC
Partner States.
In this regard, the five-year East African Com-
munity Regional Pharmaceutical Manufactur- The development of a regional plan by the EAC
ing Plan of Action (EAC-RPMPOA): 2012-2016 Partner States is one of several regional and con-
serves as a roadmap to guide the EAC towards tinental initiatives towards enhancing capacity
collectively and synergistically evolving an ef- utilisation of local pharmaceutical companies,
fective regional pharmaceutical manufacturing increasing access to medicines and boosting for-
industry that will supply national, regional and mal pharmaceuticals export markets over the
international markets with the requisite medi- past decade. Notable amongst these are the Af-
cines. The Plan of Action is closely aligned to the rican Union Pharmaceutical Manufacturing Plan
short-, medium- and long-term goals and poli- for Africa (AU-PMPA), the Economic Commu-
cies of the EAC and individual Partner States nity of West African States (ECOWAS) Pharma-
and serves to complement past and present re- ceutical Manufacturers Association (WAPMA)
gional as well as pan-African strategies. and the South African Generic Manufacturers
Association (SAGMA). Joining forces with these
The EAC-RPMPOA recommends strategic inter- regional associations, FEAPM recently became a
ventions to be applied at the firm, institutional, founding member of the Federation of African
national and regional levels to improve the busi- Pharmaceutical Manufacturers Associations,
ness environment for pharmaceutical manufac- which is supported by UNIDO. We are confi-
turing, strengthen the associated regulatory ca- dent that these national, regional and continen-
pacity and further develop the relevant human tal efforts will ultimately strengthen local phar-
resource capacity through a programmatic ap- maceutical manufacturing in Africa.
proach. The Plan has set out the following pri-
mary strategic objectives for the region:
18
The six pillars of the East African Community
Regional Pharmaceutical Manufacturing Plan of Action
Based on a SWOT analysis of the East African pharmaceutical sector, the EACs Plan of Action identi-
fies priority areas and major activities to be implemented at the micro-, meso- and macro-levels in or-
der to strengthen the local production of medicines. These major activities are clustered into six pillars
designed around the strategic objectives of the plan as detailed in the table below:
Pillar 1: Pillar 2:
Promotion of competitive and efficient regional Facilitation of increased investment in pharmaceutical
pharmaceutical production production regionally
1. Strengthening of local producers capacity to 1. Promotion of a conducive investment
meet WHO-GMP and WHO prequalification environment in the region;
standards; 2. Feasibility study identifying suitable long-term
2. Establishment of a regional pharmaceutical financing options for pharmaceutical
manufacturers association; manufacturing in the EAC region;
3. Promotion of regional and international 3. Sensitising key stakeholders on unique
collaborations including technology transfer pharmaceutical industry dynamics;
4. Development and implementation of 4. Development of national and regional policy
marketing campaign to promote domestic framework for pharmaceutical industry clusters
pharmaceutical producers and products; and special economic zones;
5. Effective use of collective purchasing preference 5. Mapping of existing and potential locations for
schemes by public procurement agencies; pharmaceutical industry clusters and special
6. Implementation of pooled procurement of raw economic zones.
materials and other pharmaceutical production
inputs by manufacturers;
7. Regional pharmaceutical demand
quantification study for 2011 to 2016;
8. Baseline survey to determine the regional
pharmaceutical production capacity as well as
firm-level underutilised capacity.
Pillar 3: Pillar 4:
Strengthening pharmaceutical regulatory capacity in Development of appropriate skills and knowledge on
the region pharmaceutical production in the region
1. Strengthening human resource capacity in 1. Identification, equipping and accreditation of
regulatory affairs in the region; training institutions;
2. Development/improvement of infrastructure 2. Development and implementation of a gender-
of NMRAs; based sectoral human resource development
3. Review of national laws for medicines strategy.
regulation;
4. Harmonisation of regulations for drug
registration, licensing of pharmaceutical
manufacturers, Standard Treatment
Guidelines and Essential Medicines List across
the region.
Pillar 5: Pillar 6:
Utilisation of WTO-TRIPS flexibilities to improve Mainstreaming innovation, research and development
local production of pharmaceuticals in East Africa within the regional pharmaceutical industry
1. National and regional sensitisation on 1. Pharmaceutical Research and Development
intellectual property rights and public health capacity enhancement in the region;
related WTO-TRIPS flexibilities; 2. Promotion and enhancement of the use of locally
2. Adoption of a regional policy framework and sourced inputs (including herbal or natural
guidelines to effectively implement public products) for production of active pharmaceutical
health related TRIPS flexibilities; ingredients, excipients and final dosage forms;
3. Domestication of public health-related TRIPS 3. Structuring and resource mobilisation for a
flexibilities within national laws. regional pharmaceutical innovation fund.
Governance, regulations and accountability in With generous support from the BMGF, the
the pharmaceutical sector are important pillars Global Medicines Regulatory Harmonisation
of effective health systems. Improved regulatory Multi-Donor Trust Fund (GMRH) was set up by
policy and harmonisation can lead to more com- the World Bank in 2011 to implement and scale
petitive markets, economic growth, improved up AMRH activities. In 2012, the East African
access to new medicines, higher quality phar- Community (EAC) became the first REC in Af-
maceuticals in circulation and ultimately better rica to receive GMRH funding. The EAC was se-
health outcomes. lected because of its commitment to medicines
regulatory harmonisation, which is underscored
In 2009, a coalition of partners including the in the EAC Treaty and has been endorsed by the
Pan-African Parliament (PAP), NEPAD Coordi- EAC Sectoral Committee on Health and the Sec-
nating and Planning Agency, the World Health toral Council of Ministers.
Organisation (WHO), the Bill & Melinda Gates
Foundation (BMGF), UK Department for Inter- On March 30, 2012 in Arusha, Tanzania, the East
national Development (DfID), and the Clinton African Community Medicines Regulatory Har-
Health Access Initiative came together to estab- monisation (EAC-MRH) Project was officially
lish the African Medicines Regulatory Harmoni- launched amid 200 high-level African and EAC
sation (AMRH) program. Working with African delegates, pharmaceutical manufacturers, bilat-
regional economic communities (RECs), the pro- eral donors, UN agencies, government agencies,
grams goal is to increase access to good quality, national medicines regulatory authorities (NM-
safe and efficacious medicines through harmo- RAs) and product development partnerships.
nising medicines regulation and expediting the
registration of essential medicines a central
component of the Pharmaceutical Manufactur-
ing Plan for Africa.
20
The Project
The EAC-MRH project is a five-year project that will be implemented in two phases. GMRH provides
support for Phase I, which covers the first three years (2012-2015) of the project. The project aims to
harmonise medicines registration systems, improve efficiency and enhance transparency in medicines
registration among EAC Partner State NMRAs. To achieve these objectives, the project is implement-
ing a variety of activities focused on strengthening existing capacities, minimising inefficiencies and
increasing transparency in medicines registration for East Africa.
Since its launch in March 2012, the EAC-MRH EAC region will reduce barriers for local drug
project has advanced considerably. Two key companies to sell across national borders. This
achievements deserve a special mention. First, promotes regional trade and growth - an impor-
the Regional Project Steering Committee has tant goal of the EAC Common Market Protocol.
been constituted and several meetings were Second, given the projects emphasis on ensur-
held in 2012. Second, all four technical working ing that technical standards and guidelines be-
groups (Medicines Evaluation and Registration, ing developed by the region adhere to interna-
GMP Inspection, Quality Management System tional WHO standards, it can be expected that
and Information Management System) have East African manufacturers will improve their
been formed and a number of draft documents, competitive position for exports beyond the
manuals and assessments have been completed. EAC to the rest of Africa and eventually to other
parts of the world.
Additionally, the project has led to regular in-
teractions between NMRAs. These interactions Conclusion
have helped to determine synergies and po-
tential opportunities for collaboration, enabled The EAC-MRH project aims to improve access
mentoring for newer NMRAs within the EAC to priority essential medicines and promote
region, and engendered trust and a willingness industry growth through the adoption of har-
among NMRAs to share responsibilities in terms monised approaches to medicines registration,
of regulatory functions. thereby reducing barriers for manufacturers.
Though still at an early stage, the project is al-
Benefits to Local Pharmaceutical ready generating lessons on the importance of
Manufacturers harmonised standards and cooperation among
regulators. As the project moves ahead, continu-
The Harmonisation of regulatory environments ous dialogue and collaboration with local indus-
supports the development of a regional market, try and civil society groups will be instrumental
creating a level playing field for fair competi- to developing an effective standards infrastruc-
tion leading to consumer benefits. East African ture in the EAC.
pharmaceutical manufacturers will benefit from
a well-functioning regulatory environment in For more information about the EAC-MRH Pro-
two distinct ways. First, the implementation of a ject and the broader AMRH initiative, please
harmonised medicines registration system in the visit: www.amrh.org
22
The Role of Medicines Regulatory Authorities in
Promoting Local Pharmaceutical Manufacturing in East Africa
The harmonisation of technical requirements In March 2012 the EAC became the first Region-
for medicines registration constitutes a major al Economic Community in Africa to launch a
opportunity for promoting a more synergistic regional project under the African Medicines
and successful relationship between the two Registration Harmonisation Initiative (AM-
stakeholders. This lesson has been learnt from RHI). The EAC Medicines Registration Harmo-
the International Conference on Harmonisation nisation (EAC-MRH) project aims to harmonise
of Technical Requirements for Registration of medicines registration in the EAC Partner States
Pharmaceuticals for Human Use (ICH), which in order to:
was launched in 1990. ICH brings together drug
regulatory authorities from Europe, Japan and n i ncrease the rapid availability of safe, effica-
the United States along with pharmaceutical cious and good quality essential medicines
manufacturers associations from these regions, in the region; and
to discuss issues relating to scientific and tech- n enable the free movement of pharmaceu-
nical requirements for product registration. The ticals within the region to complement the
objectives of ICH have been to improve the ef- implementation of the EAC Customs Union
ficiency of new drug development and registra- operational from 2010.
tion processes, promote public health, prevent
duplication of clinical trials in humans and mini- The projects goal is to have a harmonised and
mise the use of animal testing without compro- functioning medicines registration system with-
mising the safety and effectiveness of medicines. in the EAC in accordance with national and
international policies and standards (WHO &
International forums such as the International ICH). The industry, on the other hand, will ben-
Conference of Drug Regulatory Authorities efit from harmonised registration documenta-
(ICDRA) offer another opportunity for the in- tion (dossier format and technical requirements)
dustry to interact with regulators. The ICDRA as well as increased transparency and reduced
meeting normally provides space for preceding delays leading to lower costs in preparing regis-
meetings, which bring together industry, civil tration applications for multiple countries. More
society, scientific institutions and non-govern- predictable registration processes and short-
mental organisations to discuss and exchange ened timelines for registration shall mean that
experiences on all topics related to ensuring ac- manufacturers can access larger markets faster,
cess to medicines of good quality. These topics creating an incentive for manufacturers to pro-
range from clinical trials to supply chain secu- duce and register more of their products across
rity. The conferences have been providing regu- more countries.
lators from the EAC Partner States with an excel-
lent platform for information sharing. Finally, some of the strategic objectives of the
EAC Regional Pharmaceutical Manufacturing
Enhanced training provides a further opportu- Plan of Action (EAC-RPMPOA) are linked to
nity for effective collaboration between man- those of the EAC-MRH project in that they focus
ufacturers and regulators. For example, the on strengthening national medicines regulatory
Kilimanjaro School of Pharmacys Industrial capacity and aim to promote competitive and
Pharmacy Teaching Unit offers trainings for efficient regional pharmaceutical production by
pharmaceutical personnel on various aspects of strengthening local manufacturers capacity to
drug manufacturing. These have helped build meet WHO-GMP and WHO prequalification.
the industrys human resource capacity to meet The establishment of the Federation of East Af-
quality and safety standards. Further, some spe- rican Pharmaceutical Manufacturers (FEAPM)
cialised trainings on TRIPS, public health, GMP is itself a key milestone of the EAC-RPMPOA.
and WHO prequalification are aimed at both
manufacturers and regulators, thus fostering a
common understanding of quality drug produc-
24
This organ will facilitate dialogue between reg- collaboration mechanisms between regulators
ulators and manufacturers on various matters and manufacturers through FEAPM. It is envis-
related to the manufacture and regulation of aged that through such mechanisms, the two
medicines in the region. Regulators are work- stakeholders will build and strengthen the regu-
ing closely with the Federation on issues such as lation and local pharmaceutical manufacturing
the development and review of legislations and capacity in the region. This will in turn promote
guidelines that have an impact on pharmaceuti- better synergies between the two stakeholders in
cal manufacturing. order to complement the overall goals of the two
projects enhancing the manufacture of, and ac-
Conclusion cess to, affordable, efficacious, high-quality and
safe essential medicines within the region, and
The successful implementation of the EAC- contribute to the simultaneous achievement of
MRH project and the EAC-RPMPOA will con- public health and industrial development objec-
tinue to depend on effective coordination and tives in all the EAC Partner States.
By Moses Havyarimana
The recently formulated National Pharmaceuti- Last year, the government handed the National
cal Policy (NPP) is promising to change invest- Institute of Public health (INSP) direct control of
ment landscape for manufacturers in Burundi all locally manufactured medicines, but its labo-
but players are calling for urgent institutional ratory is yet to be certified. As such it has not
reforms to propel the industry to its growth po- started testing the samples of locally manufac-
tential. tured drugs.
At the moment, weak institutions have cast a Mr Emmanuel Bamenyekanye, director of the
dark shadow on manufacturers and promot- laboratories at Burundis national regulator for
ers of generic drugs such as Mutuel Life In- medicines and pharmaceuticals echoes these
surance Company which have to grapple with sentiments.
negative perception in the market.
26
What we have to do is to make sure all
quality standards are respected,
and strategies are taken to promote the industry,
Burundis centre for essential drugs, medical de-
vices, products and laboratory materials.
Mr Niyonizigiye also called for transparency in Mr. Pierre Claver Niyonizigiye talking about the opportuni-
the registration of saying the current system of ties in the pharmaceutical industry during the interview
registration through the pharmacists associa- PIERRE CLAVER NIYONIZIGIYE is the Director of Ad-
tion was a tedious non-tariff barrier to industrys ministration and Legal Affairs of the Pharmaceutical Indus-
trial Society (SIPHAR) - the only manufacturing Industry
growth.
in Burundi. In this interview, he talks about his experience
on Federation of East African Pharmaceutical Manufacturers
Some of the Burundian pharmaceutical distribu- (FEAPM) since its establishment.
tors are yet to feel the impact of the East Africas
economic integration five years after their gov-
ernment joined the bloc.
Objective Strategy
To ensure the quality, safety and efficacy of n pply unified standards of acceptable qual-
A
medicines procured using international funds ity, safety and efficacy.
and propose a list of prequalified products and n Comprehensively;
manufacturers meeting international norms and n evaluate the quality, safety and efficacy of
standards. The standards against which the as- medicinal products based on information
sessment teams evaluate both the quality specifi- submitted by the manufacturers
cations of medicines and the manufacturing sites n inspect the corresponding manufacturing
are based on the principles and practices agreed and clinical sites
by the worlds leading regulatory agencies. n monitor the product after prequalification
n Every year, billions of US dollars worth of do not have/did not have well established reg-
medicines are purchased by or through in- ulatory systems
ternational procurement agencies such as n Increasing demand for generic medicines be-
UNICEF, the Global Fund to Fight AIDS, ing produced by several players and emer-
Tuberculosis and Malaria, and UNITAID for gence of substandard products
distribution in resource-limited countries. n Need for common international standard
28
Why Prequalification of Medicines Pro-
gram? Local Manufacturers Perspective
ised by international procurers and finan- and otherwise, needed to either upgrade
cial profit manufacturers current facilities or con-
n Recognition as being WHO listed company struct new ones
leads to increased confidence in quality, n PQP demands stringent documentation
safety and efficacy of prequalified product procedures and equipment maintenance,
n Offers a level playing field adding significantly to operations costs
nAccelerated registration in several recipi- n Prequalification process for manufacturing
By Fiona Mbabazi
Before
we authorise the sale of
forward to local man-
ufacturing in a bid to
cut the extra expense
A Pharmacy in Rwanda
drugs in any pharmacy in of obtaining them
Rwanda, we first do the tests to ascertain the quality from international market.
of the drugs. We send samples to Europe and we have
confirmed Rwandan manufactured drugs are better
than some the drugs manufactured in Asia and other
countries in the world. He said
We are contributing to the online produc-
tion, especially infusions and this will
cover the national demand and even the international
audience. He said
Drugs consumer Jean Baptiste Habiyaremye, 45,
echoed these sentiments when he said that most
of the drugs sold in Rwanda pharmacies were of
high quality.
30
Rwandas Health Ministry says it plans to put He called on EAC countries to support the
in place a better pharmaceutical sector after growth of local pharmaceutical manufacturers
amending the existing laws and regulations that in terms of financial support and capacity build-
govern the importation of medicines and their ing skills.
usage in Rwanda.
The FEAPM offers a number of key services such
The overall objective of the legal changes is to as advocacy, human resource capacity building,
harmonise domestic regulations with those of research, conferencing services and technology
other EAC states. This way, the ministry hopes transfer to both members and non members.
to boost access to safe and quality medicine for
the treatment of neglected and priority diseases. According to the Rwandas health ministry,
since June 2012 it has been monitoring - on a
Germanys program fostering local pharmaceu- (PMPA), and the EAC in implementing their
tical production and utilising WTO-TRIPS-Flex- Regional Pharmaceutical Manufacturing Plan
ibilities was established to support developing of Action (RPMPOA) (also a priority sector for
countries in achieving the Millennium Devel- the EAC Industrialisation Strategy)
opment Goals (MDGs) by improving access to n Capacity building for patent office officials and
medicines, developing their local pharmaceuti- other public servants from ministries of indus-
cal industry and fostering private sector devel- try, trade and health to speed up regional har-
opment and trade capacities. monisation of patent legislation and domesti-
cation of the World Trade Organisation (WTO)
The German Program is Trade Related Intellectual Property Rights
implemented by: (TRIPS) flexibilities (using EAC-TRIPS Policy)
and common market promotion
n eutsche Gesellschaft fr Internationale
D n Training courses for judges and lawyers at na-
32
Quality Infrastructure for the Pharmaceutical Sector
in the East African Community
updated: 04/2013
34
PTB in brief Project Data
Establishment of a regional Quality Infrastructure for the
A globalized international economy calls for globalized pharmaceutical sector
metrology. This is why the orientation and impact of
PTB, the national metrology institute of Germany, is not Source of finance
restricted to the national borders. Federal Ministry for Economic Cooperation and
Development, Germany
PTB with its 2,000 staff members is rather a global
player in the world of metrology and faces the Commission value
responsibility involved for society, economy and science. 1,500,000 EUR
By ZEPHANIA UBWANI
Pharmaceutical manufacturers in Tanzania are push- market of counterfeits and substandard drugs. Like
ing for friendly regulation to ease their expansion other EAC countries, Tanzania has been grappling
to other East African states as stiff competition from with counterfeit and sub-standard drugs, mostly im-
Asian firms continue to squeeze their space in the do- ports.
mestic market.
When he inaugurated the new facility in March this
Most of the drugs on shelves are from India, the Asian year, President Jakaya Kikwete said the government
nation which produces relatively cheaper drugs and was committed to drive fake goods out of the local
has successfully taken advantage of Tanzanias open market.
market policy to grow its market share, industry play-
ers say.
36
At the moment, the government charges VAT on raw
materials mostly the active ingredients for making
pharmaceuticals. These active ingredients not avail-
Selling pharmaceutical products from
one country to the other in East
Africa remains only in theory. Registration of products in
able in most of the sub Saharan African countries another country takes a long time, is cumbersome and has
meaning manufacturers in Tanzania will always have proved to be another barrier to intra-regional trade, said
to import them from abroad. Dr Athalye.
Similarly, the government also charges VAT on pack- The TDFA, however, has a different take on what
aging materials for medicines. While Tanzania Rev- manufacturers see as frustrating red tape placed on
enue Authority allows manufacturers to claim these the way of investors seeking to expand regional pres-
charges, the VAT refund procedure is tedious and ence.
takes a long time to accomplish.
Each country - Tanzania, Uganda and Kenya - has dif-
Industry players also cite high interest rates of banks ferent regulatory regimes which have not been har-
among the factors that drive up their cost of opera- monised, he says.
tions. Banks also take too long to process the loans,
delaying procurement of raw materials from abroad
and consequently the actual production, says Dr
Kishor Athalye, operations manager of Zenufa Labo-
Many times, manufacturers are not able to
comply with the required standards.
When we start acting against such inconsistencies, they
ratories Limited, a Dar es Salaam-based pharmaceuti- blame us, he said.
cal plant.
The first regional Bioequivalence Center in East- the first step to global market competitiveness.
ern Africa, based in Addis Ababa, was officially In order to sell a generic internationally, it is also
inaugurated on November 14th by His Excellen- necessary to demonstrate that the generic drug
cy Tadesse Haile, State Minister of the Ministry acts in the human body the same way as the
of Industry of the Federal Republic of Ethiopia. originator does. From an ethical perspective, it
is not acceptable to run through all of the same
When GIZ, on behalf of the German Govern- clinical trials for registration if the new medicine
ment, started its program of support to the lo- has the same active pharmaceutical ingredient
cal production of pharmaceuticals in developing in the same concentration and combination of
countries in 2002, there was general scepticism ingredients as the originator. If the toxicity of
among experts regarding the possibility of pro- the substance is low, simple laboratory testing
ducing high quality medicines in Africa. There may suffice. However, in most cases, producers
were also doubts of generic drugs
about the eco- must demon-
nomic feasibil- strate bioequiv-
ity of producing alence, which
medicines local- means that the
ly, as companies drugs active
from industri- substance pass-
alised countries es the intestine/
as well as from blood barrier in
China and India the same quan-
are able to pro- tity and speed
vide any drug, as the original
and Indian com- drug and shows
panies can do so the same char-
at a very com- acteristics in the
petitive price body.
level.
Of course, many companies all over the devel- Undertaking a bioequivalence study requires a
oping world have been producing pharmaceu- clinic and a lab that is able to analyse substances
ticals for their local markets, but it has not been in blood plasma on a very low concentration and
possible for them to serve international markets, in a reproducible manner. While this is not par-
as their quality management systems were gen- ticularly advanced science, currently only labo-
erally not accepted internationally. This was ratories in high- and middle-income countries
for good reasons in many cases - the quality of are able to provide such studies. To do a bio-
such drugs was lacking and a large amount of equivalence study in South Africa or India, not
substandard and counterfeit drugs were on the to mention industrialised countries, is expensive
markets. However, the management and staff (starting at USD 100,000) and takes considerable
of some African pharmaceutical manufacturers time due to long waiting lists. A bioequivalence
had internalised the needed quality thinking center in sub-Saharan Africa would reduce this
and, after some intensive training and several cost by up to 50% as well as speeding up the pro-
test audits, were able to guarantee the quality of cess.
their products using up-to-date quality manage-
ment systems. This is now the case for almost a With this in mind, GIZ discussed the possibility
dozen companies spread across several African of constructing a bioequivalence center in Africa
countries, and this figure is growing rapidly. with its partners in 2008. Two German experts
on bioequivalence carried out a feasibility study,
Nevertheless, compliance with the current WHO interviewing numerous stakeholders through-
Good Manufacturing Practice standards is only out Eastern Africa and several international ex-
38
perts. The results of the study were discussed in case studies [] demonstrate the
workshops in Ethiopia and Kenya. The experts essential value of regulatory systems
ultimately reached the conclusion that a bio- to low- and middle-income countries.
equivalence lab in Africa was technically and
When they work, people live; when
economically feasible, and proposed Addis Aba-
ba as the right location for it. With the results of they fail, people die. As the challenges
the feasibility study confirmed, and several Af- of globalization mount, and efforts to
rican firms already interested in investing in the provide medical products to low- and
project, GIZ successfully solicited co-financing middle-income countries scale up,
from the German Government.
there is no better time to put regulatory
The German Government worked with a range system strengthening squarely on the
of public and private partners to make the Re- global health and development agenda.
gional Bioequivalence Center in Eastern Africa a Lets contribute to this effort.
reality. These include pharmaceutical manufac-
turers from Germany, Kenya and Ethiopia, Ad- Charles Preston, USFDA
dis Ababa University as public partner and host
of the Bioequivalence Center, the Governments
of Ethiopia and Kenya, the World Health Or-
ganisation and several elements of the German
Development Cooperation.
begins after being certified as a WHO-prequali-
The Regional Bioequivalence Center has been fied Contract Research Organisation (CRO).
registered as a shared company under Ethiopian
law. The staff is now in training on the job and in The importance of a regional, African Bioequiva-
Germany, and the instruments for the lab have lence Center cannot be underestimated. It will
been installed and qualified. The Centers next contribute to the overall development of the
steps are to undertake its first pilot studies and, pharmaceutical sector in Africa, and thus to bet-
after up to two years, to be audited and hopeful- ter, high quality drugs for Africa, produced in
ly certified by the WHO. The real research work Africa.
The mission of Medical Production Division (MPD )is providing enough quantity
of generic essential drugs with great therapeutic effectiveness at affordable
prices to all layers of the population of Rwanda
MPD is the only one drug manufacturing plant in Rwanda | Thirty years of drug manufacturing and Quality
RWANDA BIOMEDICAL CENTER
P.O. Box 340, Butare / Rwanda | Tel.: (+250) 252 530 164/155 | Fax: (+250) 252 530 416
www.rbc.gov.rw | mp@ rbc.gov.rw
Ugandas drug industry is counting on a strong prices of importing raw materials and rising cost
regional lobby group to mobilise capacity sup- of utilities, have been cited as top industrys con-
port as insufficient skilled labour, high opera- cerns.
tion costs and conflicting regulation restrict their
growth. Industry stakeholders estimate that locally pro-
duced drugs now constitutes between 10 and
Nazeem Mohammed, CEO of Kampala Pharma- 25 percent of medicines procured annually in
ceutical Industry (KPI) says last years formation Uganda.
of Federation of East African Pharmaceutical
Manufacturers (FEAPM) was a significant step A report produced by the United Nations Indus-
towards consolidating support for the industry. trial Development Organisation (UNIDO) indi-
cates that by 2010, the country was importing
The KPI, together with Abacus Parenterals more than 90 per cent of its essential medicines
Drugs Limited and Quality Chemical Industries, and health supplies, mainly from India and Chi-
form Ugandas manufacturing base. The KPI na.
produces a range of over 50 registered products,
including paracetamol and drugs used in the
treatment of Malaria, Diabetes and Hyperten-
sion.
The pharmaceutical industry in Ugan-
da is still young and has a number
of challenges, says Moses Kamabare, General
Manager, National Medical stores.
40
tion and this is what Uganda needs to borrow, Mr
Kamabare said. This is because there are other benefits
that accrue and outweigh the 15%
that government and people of Uganda get from buy-
Mr Mohammed agrees: ing in Uganda than buying from India or China,
So far, the local manufacturers enjoy technical For all these plans to materialise, says Nazeem
support to develop and register their products. Mohammed, there has to be the political will to
Such support has been in form of training in cur- make the right policies. This way, Uganda could
rent Good Manufacturing Practice, Ms Kikule seize the obtaining opportunity to build a for-
said, adding the regulator also charges lower midable pharmaceutical manufacturing base,
fees for registration of locally produced drugs eventually reducing reliance on imports and
and licensing of premises. creating an export-based sector at home.
Various studies have pointed out that there is velopment partners and educational institutions
a serious shortage of healthcare workers and alike, a critical gap thus exists in training for
pharmaceutical personnel in the East African industrial pharmacists and technical pharma-
Community (EAC). For instance, the Tanzanian ceutical staff. Addressing this human resource
population of over 40 million is served by only gap should constitute a central part of the EACs
about 1,000 registered pharmacists, 650 phar- efforts to help pharmaceutical manufacturers
maceutical technicians and 350 pharmaceuti- achieve World Health Organisation (WHO) pre-
cal assistants. With a density of 0.02 pharma- qualification and assist the sector as a whole in
ceutical personnel per 10,000 people, Tanzania enhancing access to safe, efficacious and afforda-
and Burundi are among the most underserved ble medicines in the region. This can be done by
countries in sub-Saharan Africa in this regard. improving and expanding university courses to
Burundis density (0.10) is also low, Uganda produce a higher number of well-trained gradu-
(0.26) lies near the middle, while Kenya (1.00) ates for the pharmaceutical industry on the one
has the ninth highest density in sub-Saharan hand, and providing focused short-term profes-
Africa. Kenya thus sets an example for the rest sional trainings for pharmaceutical manufactur-
of the region, while countries such as Botswana ing personnel on the other hand.
and Namibia, with densities of 1.8 and 1.9 per
10,000, set standards for the EAC as a whole to University Courses
aspire to. South Africa, with 2.8, and Vietnam,
with 3.2 pharmaceutical personnel per 10,000 The general shortage of locally trained pharma-
people, may represent longer-term targets for ceutical staff can be addressed by expanding
the region. the capacity of university courses to educate a
greater volume of students. In terms of qual-
A total of 34 universities and colleges in the ity enhancement and regional integration, an
EAC offer pharmaceutical training at different important initiative is currently underway to
levels ranging from certificates to PhDs. Eleven standardise pharmaceutical education in the re-
of these offer bachelors degrees and four offer gion at the EAC Secretariat in the form of cur-
postgraduate training. Besides training a low ricula harmonisation. However, further work is
number of general pharmaceutical staff, most of needed in several areas.
these institutions do not specialise on the spe-
cific requirements attached to pharmaceutical Based on experience and exchange with local
manufacturing. Indeed, training targeting phar- manufacturers, the GIZ-EAC Program experts
maceutical engineers is missing altogether in the specifically point to a need for more professors
region. Most institutions lack teaching person- who have practical experience in pharmaceutical
nel with industry experience, well-equipped manufacturing and better-equipped laboratories
and well-maintained laboratories and libraries, to enable hands-on training with up-to-date in-
industrial hands-on training facilities and prop- dustry standard equipment as well as practical
er internship agreements with the manufactur- laboratory research training. Training institu-
ing industry. tions, public and private funders, and pharma-
ceutical manufacturers should also collaborate
As a result, most pharmaceutical manufacturers to expand internship programs in order to bring
still have to recruit highly professional staff such students of pharmacy closer to the industry.
as operations managers or quality assurance
officers from abroad. In addition, companies
complain that those professionals hired after
graduating from one of the regions institutions
normally lack practical know-how and require Enhancing university courses
extensive in-house training as well as external
professional training courses.
n I ncreased admissions volumes
n L abs with industry standard equipment
In the eyes of East African manufacturers, de- n P rofessors with industry experience
n I ndustry internships
42
Federation of East African Pharmaceutical Manufacturers (FEAPM) | Yearbook 2012 43
Post-university trainings
Short professional training courses on spe- In addition, KSP collaborates with Purdue and
cific aspects of quality drug manufacture can Howard Universities to offer the Industrial
likewise empower pharmaceutical personnel Pharmacy Advanced Training Program (IPAT).
to help their firms produce medicines to inter- This consists of short courses for pharmaceuti-
national quality standards. The success of any cal producers in drug research and develop-
such course depends on the companies ability ment, manufacturing and quality compliance.
to give their employees leave of absence in or- The IPAT also offers courses for regulatory au-
der to attend. A survey of East African pharma- thorities. The high demand among manufactur-
ceutical manufacturers showed that a combina- ers for the IPAT shows that knowledge transfer
tion of weekdays and weekend days would be from abroad to this region is highly needed and
best suited. This would mean that employees appreciated by the regional pharmaceutical in-
miss fewer working days and that the costs are dustry.
shared between the company and the trainee -
the company pays for travel expenses and fees The IPTU is available for teaching, trainings and
while the employee sacrifices her weekend. The pharmaceutical development studies (e.g. scale-
majority of companies surveyed favoured train- up batches up to 50kg). It is a model factory
ings lasting between three days and one week, where students and professionals can be trained
depending on the amount of practical training in a fully functional Good Manufacturing Prac-
involved. tices (GMP) compliant production environment
with a variety of older (e.g. mixers) and state-of-
Model Institutions the-art (e.g. tablet coating) machines that reflect
the industry standards in place.
Future efforts to enhance training provision
for pharmaceutical manufacturing may draw With support from the Deutsche Gesellschaft
inspiration from the St. Luke Foundations In- fuer Internationale Zusammenarbeit (GIZ)
dustrial Pharmacy Training Unit (IPTU), its host GmbH and Action Medeor, The Pharm R&D
institution, the Kilimanjaro School of Pharmacy Lab at MUHAS also offers short courses for
(KSP), in Moshi, and the Pharm R&D Lab at the pharmaceutical professionals in a state-of-the-
Muhimbili University of Health and Allied Sci- art laboratory used by regional manufacturers
ences (MUHAS) School of Pharmacy in Dar es for pharmaceutical research and development.
Salaam, Tanzania. Similar to the IPAT at Kilimanjaro School of
Pharmacy, a range of specialised courses on
KSP, the only pharmaceutical training institu- aspects of drug development, production and
tion in Tanzania that is accredited by the Nation- quality assurance are on offer.
al Council for Technical Education (NACTE),
offers a three-year training program for phar-
maceutical technicians (level 6) and a four-year
program for pharmaceutical assistants (level 5).
44
The Way Forward
The success of the EAC regions pharmaceutical post-university trainings they would be willing
manufacturing industry depends on the ability to invest in. Likewise, experts have laid out the
of all involved stakeholders to close the current necessary interventions needed to help univer-
human resource gaps. The opportunities for sities empower their students to be true assets
progress in this area are clear and multi-facet- to the regional pharmaceutical industry. Finally,
ed targeted investment in the regions higher any future initiatives may draw inspiration and
education infrastructure will not only enable information from two outstanding training in-
manufacturers to more effectively provide qual- stitution already providing targeted enhanced
ity, safe affordable drugs to East Africas pop- training for the East African pharmaceutical sec-
ulation, but also build lasting local capacity in tor. The door is thus wide open for more collabo-
a crucial sector moving towards international ration between manufacturers, training institu-
competitiveness. tions, governments and development partners
to bolster the pharmaceutical sectors local hu-
Pharmaceutical manufacturers have already man resource base by investing in pharmaceuti-
identified the key areas in which more and cal education in the region.
better training is needed, as well as the sort of
OUR MISSION:
WE ENHANCE HEALTH Founder Georg Kamm
IN DEVELOPING COUNTRIES THROUGH
In 1991 the base of the p
APPROPRIATE INNOVATIVE SERVICES, location near KCMC in
TRAINING & RESEARCH, activities. In 2004, in the
BASED ON CHRISTIAN VALUES ELCT Infusion Project wa
a Trust of the Evangelic
OUR VISION: Main Objectives and Va
For the patients in ne
TO ACHIEVE production should guara
SELF PRODUCTION, OWNERSHIP, infusions and other bas
SELF RESPONSIBILITY & IDENTITY compounds at affordable
LEADING TO Decentralised productio
QUALITY HEALTH CARE FOR ALL Production according to e
by a self controlled unit, i
by continuous staff trainin
create the feeling of own
www.saintlukefoundation.co.tz key values leading to loc
46
ndation The Organisation
Our History:
In 1977 Georg Kamm started the first infusion unit using reverse
am osmosis - an energy saving new technology- in Machame Hospital Pharmaceutical S
Kilimanjaro Tanzania. Seeing the success, continuous availability
armacy of intravenous fluids, neighboring hospitals asked him and
Zacharias Nkya, his first technician, for help. They started to
urch of Tanzania install similar units in other hospitals: the Decentralized Infusion
vices Units Project was born.
Systems
From the beginning training of the needed staff, standardized
equipment, professional installation, regular supervision and
retraining, preventive maintenance and supplies with quality
spare parts and consumables were essential elements of the
project.
The program for hospital based sterile production has been
supported by the Evangelical Lutheran Church in Germany (EED)
and Mission OneWorld (Bavarian Lutheran Church). In 1986 the
long term cooperation with the Medical Mission Institute Wuerzburg The Pharmacist Mr. Mu
started with regular consultancies focusing on appropriate teaching unit for hospit
technology and standards, followed by cooperation with the used also for practical
German Institute for Medical Mission in Tuebingen. School of Pharmacy
preparations in hospital
In this unit the 3 months
gram and refresher cou
training on eye drop
procurement of raw ma
here.
Technical Departm
Specialised technician
procurement of equipm
In the department the R
LTH Founder Georg Kamm Infusion Unit South TZ locally.
S THROUGH
In 1991 the base of the project moved from Machame to its present
SERVICES, location near KCMC in Moshi with sufficient space for additional
CH, activities. In 2004, in the course of the 25 years celebration, the
VALUES ELCT Infusion Project was transferred into Saint Luke Foundation,
a Trust of the Evangelical Lutheran Church of Tanzania.
d staff, standardized
ular supervision and
supplies with quality
ential elements of the
Technical Department
Specialised technicians at the base are responsible for the
procurement of equipment and spare parts for each hospital unit.
In the department the Reverse Osmosis machines are assembled
Unit South TZ locally.
Machame to its present
nt space for additional
years celebration, the Technical
aint Luke Foundation, Department:
h of Tanzania. Assembling
and testing of
a new
local, hospital based RO- machine
access to life saving
ike eye drops or other
of flexibility:
quality assurance The department performs regular service visits to all hospitals
wledge and skills with an infusion production unit. At least once a year a phar-
ce from imports macist specialized in supervision and quality assurance joins
iance. These are them. If needed additional visits are organised.
ng.
48
Our Aim FEDERATION OF KENYA
To advocate for the strengthening of local pharmaceutical manufacturing of medicines so as to enhance PHARMACEUTICAL
sustain and expand the market share in Kenya, East African region and beyond medicines. MANUFACTURERS
Our Objectives
a) To promote and advocate for policy change that is friendly and providing higher incentive for domestic
pharmaceutical production.
b) To provide a platform for promotion of Local research and development in pharmaceutical sciences.
c) To engage stakeholders, and in particular regulatory agencies in the formulation of laws, regulations and
guidelines that inform and impact on good manufacturing practices.
d) To initiate, facilitate and establish contacts with similar associations worldwide.
e) To promote and represent the Kenya Pharmaceutical manufacturing Industry regionally and
internationally.
f) To keep member firms fully informed of all relevant developments affecting the pharmaceutical markets
in East Africa and beyond.
g) To conduct and liaise with training institutions whether public or private in order to enhance industrial
pharmacy awareness and emerging trends
h) To prepare main position papers for onward engagement with other stakeholders and in particular public officials upon request or own
motion on any matter that would affect and enhance the practice in the pharmaceutical manufacturing industry.
Enterprise Road Mogadishu Road, off Lunga Lunga Rd. Lunga Lunga Rd Ind Area
Box 18171 Nairobi Industrial area Box 32040-00600 Nairobi
aesthetics@iconnect.co.ke Box 42569-00100 Nairobi info@biodeal.co.ke
Industrial Area
Box 56739-00200
Nairobi
info@skylightchemicals.co.ke
Students of
the certificate
and diploma
course in
front of the
new
KSP building
50
In addition KSP offers for training of professionals from Sub-
Saharan pharmaceutical industries, regulatory authorities and
o hospital produced
universities new advanced training programs.
(KSP)
The recognized need of a teaching unit for practical training led to
age in training the plan of the Industrial Pharmacy Teaching Unit (IPTU), a
ment of Tanzania building fully equipped for teaching Good Manufacturing Practices
lfare in the year (GMP) under real production conditions with a 50 kg batch size
eptember 2002. It equipment. IPTU is also used for pharmaceutical development in
e Foundation. collaboration with MUHAS for local pharmaceutical industries e.g.
tional Council for scale up of batches, short training courses e.g. FDA training or
the set criteria in BASF coating course.
09 at National
Students of
the certificate
and diploma
course in
front of the
new
KSP building
SLF, P.O.Box 481, Mos
Tel./ Fax: 00255-27-27
Cooperation partners: TFD
Mission EineWelt, MMI, G
Mary, Rotary Club Wuerzb
Bonn Germany, Mr. G. Ko
chnician Certificate for Pharmacist, Prof. Steve By
d Ordinary Diploma for Fortunak, Howard Univers
Pharmacists without Borde
52
MUHAS School of Pharmacy MU
Dar Es Salaam
What we offer:
Basic m
industry
rms Quality
Pharma
tions
vices
Tailor mad
eutical request.
and
54
acy MUHAS School of Pharmacy
Dar Es Salaam
56
cy MUHAS School of Pharmacy MU
Dar Es Salaam
acy MUHAS School of Pharmacy MU
Dar Es Salaam
Our Equipment: Please contact
58
Investment Promotion Centres in the East African Community
Burundi - www.investburundi.com
The Burundi Investment Promotion Agency (API - Agence de Promotion des Investissements) pro-
vides assistance to investors though information on the pharmaceutical sector as well as the acqui-
sition of documents needed to conduct business in Burundi. Potential investors are encouraged to
explore the more or less untapped pharmaceutical sector in Burundi and at the same time enjoy the
advantages of regional economic integration in the EAC.
As a Developing Country (DC), Kenya is currently the only non-LDC (Least Developed Country) in
the EAC. Kenya is not only the largest producer of pharmaceutical products in the EAC but also in the
Common Market for Eastern and Southern Africa (COMESA). Kenya is also active in medical and in-
dustrial research through key research bodies such as the Kenya Medical Research Institute (KEMRI),
Kenya Industrial Research and Development Institute (KIRDI) and medical faculties of various public
and private universities.
Kenyas policy offers patent protection for pharmaceuticals based on the African Regional Intellectual
Property Organisation (ARIPO) patent system. The Kenya Industrial Property Bill passed in 2001 also
allows for the importation and production of more affordable medicines. Besides manufacturing phar-
maceuticals for both local and international markets, Kenyas pharmaceutical sector is also involved in
making disposable syringes and surgical gauzes as well as in assembling capsules.
Membership in regional bodies like COMESA and the East African Community (EAC) provides Ken-
ya with preferential access to regional markets and reduced tariffs for its pharmaceutical products.
Kenya exports its medicinal and pharmaceutical products to Uganda, Burundi, Tanzania, Rwanda, the
Comoros, DRC, Ethiopia and Malawi among other countries.
Taking this into consideration, the Kenya Investment Authority has endeavoured to support the phar-
maceutical sector through investment promotion targeting both domestic and foreign investors. There
is high potential in the pharmaceutical sector and KenInvest encourages investors to take up opportu-
nities in the following key pharmaceutical areas:
n rocessing traditional medicines for commercial purposes using the diverse flora in Kenya
P
n Plants to manufacture antibiotic rifampicin, anti-leprosy and anti-tuberculosis drugs
from the penultimate state
n Manufacture of latex gloves, disposable surgical gloves and condoms
n Manufacture of medical supplies eg. Catheters, gauzes, syringes and other medical equipment
n Pharmaceutical processing of locally available salt (sodium chloride), sugars and ethanol for
60
Rwanda - www.rdb.rw
Rwanda also relies heavily on imports for its pharmaceuticals supply (approximately 95%). Rwanda
encourages investors to take advantage of the huge gap in the local pharmaceutical supply. The gov-
ernment offers a number of generous incentives aligned with its Vision 2020 healthcare promotion
program to attract investors to the pharmaceutical manufacturing sector in Rwanda. Among the key
policy aspects that favour potential manufacturers in the pharmaceutical sector are:
n Prevention and treatment of HIV/AIDS, reproductive health, reducing child and maternal mortal-
The Rwanda Development Board (RDB) offers comprehensive support to investors and the Rwanda
Biomedical Center (RBC) can provide additional information on the pharmaceutical sector.
Around 80% of Tanzanias pharmaceuticals and healthcare products are imported. Due to high de-
pendence on imports, there are shortages of drugs and other pharmaceuticals within the country.
There have been a series of major economic and social changes in Tanzania and the Government has
adopted a stronger approach towards encouraging private investments. New policies have been de-
veloped that favour the private sector and the Tanzania Investment Centre informs investors on how
to take advantage of the improved business climate.
62
Uganda - www.ugandainvest.go.ug
Since Uganda produces only 5-10% of its demand for pharmaceutical and health products it is highly
dependent on imports. The Uganda Investment Authority estimates that pharmaceutical and health
products account for more than 10% of the countrys total imports.
There are still very few pharmaceutical manufacturers operating in Uganda despite high consumption
of drugs. This creates high market potential for investors to tap into Ugandas pharmaceutical sector.
According to the Uganda Investment Authority, investors can set up manufacturing plants for phar-
maceutical products and take advantage of the incentives provided for local pharmaceutical manu-
facturing. There is a shortage not just in the production of drugs but other health products as well.
For instance, given the high prevalence of HIV/AIDS in Uganda and the relatively widespread use of
condoms, a manufacturing plant for latex products and condoms would meet the high demand and
generate profits. Uganda also has one plant that specialises in the production of disposable syringes,
but this meets only 20% of the demand and the remaining 80% is satisfied through imports.
The Uganda Investment Authority encourages potential investors to exploit Ugandas favourable cli-
mate, macroeconomic conditions and political stability.
64
mAceutIcAls ltd.
ity Pharmaceutical Products
66
Kenya Medical Supplies Authority ing countries, donor funded healthcare projects,
The Kenya Medical Supplies Authority (KEM- government health facilities, community based
SA) is a parastatal with the mandate to procure, healthcare initiatives and other faith-based
warehouse, and distribute medical commodi- health facilities. In 2011, MEDSs turnover was
ties to public health facilities. In 2012, KEMSAs estimated at USD 14 million.
pharmaceutical distribution volumes were esti-
mated to be valued at about USD 253 million. Retail Pharmacies
KEMSA does not carry out any importation ac- All of the 1,000 licensed retail pharmacies in
tivities. Rather, it sources its products through Kenya are privately owned. Because of gaps in
competitive tenders, supplied by private sector law enforcement, an estimated 3,000 - 4,000 un-
importers and distributors. KEMSA purchases licensed retail pharmacies operate in Kenya. Re-
about 50% of all prescription drugs in Kenya. It tail pharmacies make a significant contribution
distributes health commodities to over 5000 pub- to health service delivery. Besides being the first
lic facilities including pharmaceuticals procured point of call for outpatient services, retail phar-
for agencies such as the United States Agency macies also dispense prescriptions from both
for International Development (USAID), United private and public health institutions.
Nations Childrens Fund (UNICEF), United Na-
tions Population Fund (UNFPA), World Bank, Rwanda
Global Fund and DANIDA.
Rwandas population of 11 million is growing
KEMSA has undergone a tremendous transfor- by 2.8% per annum. The disease burden for com-
mation in the last four years. Shifting from an municable and non-communicable diseases has
Agency to an Authority, most parallel supply remained high, translating into high demand for
chains have been integrated under KEMSA, healthcare services.
which has become the leading supply chain or-
ganisation for pharmaceuticals in the country. The countrys under-resourced health systems
and supply chain networks have struggled to
Further, KEMSA has been capitalised and com- keep pace with increasing demand for essential
mercialised with assistance from the World Bank health commodities. To meet the need for scale-
and the new commercial window for KEMSA is up, the Government of Rwanda introduced a
already trading with public facilities at competi- national coordinated procurement and distribu-
tive terms. USAID has provided additional fund- tion system for health commodities. The Rwanda
ing for an Enterprise Resource Planning System Biomedical Centre / Medical Procurement and
(ERP), an integrated end-to-end ICT platform Distribution Division (RBC/MPDD), the Rwan-
to improve business processing. They have also dan national essential medicines procurement
provided long-term technical advisors and in- organisation, operates the public medical stores
vested in various supply chain processes, which and has sole responsibility for quantifying, pro-
has increased KEMSAs capacity to throughput curing, storing, and distributing public health
its current high volumes with greater efficiency. commodities. MPDDs mission is to avail quality
and cost effective medical equipment, drugs and
Mission for Essential Medicines and Medical medical supplies to the Rwandan people. This is
Supplies achieved through three major objectives:
The Mission for Essential Medicines and Medi-
cal Supplies (MEDS) plays a similar role as n o procure world class quality pharmaceuti-
T
KEMSA for Christian faith-based health insti- cal products;
tutions primarily in Kenya. MEDS is a not-for- n
To continually improve storage and distri-
profit healthcare provider established in 1986 as bution through a computerize management
a joint service of the Kenya Episcopal Confer- system;
ence (KEC) and the Christian Health Association n
To insure the quality of stored health com-
of Kenya (CHAK). Its client base is estimated at modities through good storage practices and
about 1,800, which includes church health facili- regular quality control in WHO accredited
ties in Kenya, NGOs in Kenya and neighbour- Laboratories.
The most populous country in East Africa with 2012 Ugandas total pharmaceuticals business
a population of 44 million, Tanzania imports was USD 317 million. This is growing at a rate of
about 80% of its total pharmaceutical require- 18.5%. Uganda imports 95% of its total pharma-
ments. Kenyan manufacturers supply approxi- ceuticals. The public supply chain of medicines
mately 8% of the total demand. The Tanzanian is dominated by The National Medical Stores
pharmaceutical market has distinct public and and the private sector is layered with wholesal-
private sectors. ers, retailers, chemist shops and private clinics.
The public sector is comprised of the govern- There are over 500 registered pharmacies, over
ment and its international donors. The Medical 4,500 chemist shops and 115 hospitals that form
Stores Department (MSD) operates the public a network of outlets for medical commodi-
supply chain for essential medicines and medical ties. Nearly 80% of all private pharmacies are
supplies, procuring commodities valued at USD in Kampala, Jinja and Mbarara, meaning some
86.5 million (2011/12), nearly 60% of all govern- marginal areas are grossly underserved.
ment and donor-funded medicines in the coun-
try. The medicines are sold to over 5,000 public The National Medical Stores (NMS)
healthcare facilities, which include Government, NMS is an autonomous government corporation
faith-based organisation (FBO) and NGO facili- mandated to procure, warehouse and distribute
ties. MSD has been decentralising distribution to health commodities to public health facilities in
facilities through a network of ten zonal stores. Uganda. Joint Medical Store (JMS) is the main
distributor targeting faith-based organisations
The Ministry of Health and Social Welfare As- (FBOs) in Uganda. NMS supplies 55%, JMS pro-
sessment of Pharmaceutical Human Resource vides 35%, and private distributors supply 10%
Report of 2009 recorded that pharmaceuticals of the public sector value.
are supplied to the Tanzanian market through a
network of 4,185 public, 659 private, 155 NGO NMS serves 2,850 public health facilities (at all
and 853 FBO facilities as well as 375 wholesalers levels including National Referral Hospitals
and 661 private retailers. In addition to this there and Institutes) with over 2,400 essential medical
are over 6,000 Duka la Dawas, which are only commodities. NMS does not operate regional
authorised to sell non-prescription, or Over The warehouses but rather directly distributes to the
Counter (OTC), medicines. 2,850 facilities through a Hub & Spoke mecha-
nism with the countrys 112 districts forming the
The main players in the private sector include: hubs/distribution points.
Salama Pharmaceuticals, Philips Distributors,
JD Pharmacy, Laborex Tanzania Ltd, Samiro Private Distributors
Pharmaceuticals, Astra Pharma Tanzania Ltd, Ugandas private distributors include: Abacus
ABACUS Pharma Ltd, Moraf Pharmaceuticals, pharma, Surgipharm Uganda Ltd , Laborex
ACB Pharmaceuticals, Pharmed ltd, Heko Phar- Uganda Ltd , Tittoes Pharmacy, Super Medic
macy, Bahari Pharmacy, Jiichem Tanzania Ltd Pharmaceuticals, Venus Pharmaceuticals, Ugan-
among others. da Pharmaceuticals, Rene Industries Ltd, Bap
Pharma Suppliers Uganda ltd, A&A Medicor
These companies import pharmaceuticals (both Pharmacy and Vine Pharmaceuticals.
brands and generics), surgical and medical dis-
posables from the United Kingdom, Southeast These firms import a wide variety of gener-
Asia, Kenya, India and China, and distribute ics and brands from manufacturers in Europe,
them in Tanzania to private as well as public fa- India, Kenya, the Middle East and China and
cilities. Their individual market shares are not distribute to government facilities, NGOs and
in the public domain and thus difficult to accu- retailers.
rately profile.
Uganda
68
Challenges Facing Pharmaceuticals
Distribution in East Africa Conclusion
n oor roads and road networks contribute to
P It is imperative that all stakeholders work to-
increased cost of delivery to the client. Hard gether to streamline pharmaceuticals distribu-
to reach areas are poorly supplied translat- tion in the region to support the growth of the
ing to lengthy order turnaround of up to sev- manufacturing enterprises, distributors and re-
eral weeks; tailers for the benefit of healthcare delivery in
n
Gaps in sector regulation and surveillance East Africa. All such actions should aim to re-
has led to growing incidence of counterfeits, duce the cost of drugs, increase access to essen-
diverted medicines and unregulated parallel tial medicines for improved health outcomes.
pharmaceutical trade; The EAC is expected to play the critical roles of
n
Lack of timely and accurate consumption coordinating, aligning, harmonising and inte-
data make it difficult to forecast and plan for grating individual member country efforts with-
future demand; in the broader EAC strategy.
n
Poor distribution infrastructure including
warehouses and limited hospital storage
delay distribution and in many cases nega-
tively affect the quality of the product before
it reaches the end user;
n
Poor supply chain management, in most
cases manual, create room for stock pilferage
and expiries;
n
Fragmented supply chains serve small mar-
kets with limited consumer purchasing
power and load unnecessary costs to the end
product;
n
Extensive border controls are a major obsta-
cle to intra-regional distribution.
Recommendations
n armonise policies of different line minis-
H
tries nationally and between countries to
arrive at a comprehensive policy and regu-
latory framework to support the regional
production and distribution of medical com-
modities;
n
Promote regional and international collabo-
ration on medicines regulation and purchas-
ing in line with EAC and other initiatives;
n
Build capacity in technical disciplines by
committing more resources to teaching insti-
tutions targeting health commodities supply
chain;
n
Promote pooled procurement of essential
Medicines and medical Supplies to exploit
economies of scale;
n
Integrated approach towards Pharmacovigi-
lance in order to ensure medicines in the
block are safe and produced and traded on a
level playing field;
n
Merger of small distributor enterprises to
build greater capacity as well as increase ef-
ficiency and effectiveness.
By George Omondi
The push by Kenyas pharmaceutical firms to claw sal Corporation which has WHO prequalification for
back more share of regional market from the tight production of ARVs.
grip of cheap Asian drugs is waning amid multiple
charges, conflicting regulations and high costs of run- The local manufacturers, he said, understand envi-
ning factories. ronmental conditions of various sale points and there-
While the government does not charge duty on fore provide appropriate packaging for each area of
drugs, the two per cent on F.O.B that Kenya Revenue the region to ensure medicine remains in good condi-
Authority levies as import declaration fee remains a tions on shelves.
burden, says Dr Kamamia Wa Murichu, chairman of
Kenya Drug Manufacturers and Distributors Associa-
tion (KDMDA).
In addition, says Dr Murichu, the Kenya Pharmacies
Generally, I prefer local medi-
cines not only be-
cause they are working but also due to their pocket-friend-
and Poisons Board (PPB) has introduced quite a num- liness, Dr Murichu who also serves as Secretary of
ber of levies, among them, 0.75 per cent on F.O.B. as East African Health Platform said.
retention charges.
To local firms which have limited control on most of Mr Kiumbura Githinji, Supply Chain Advisor at Ken-
their operation costs, these regulatory levies only pile ya Medical Supplies Agency (Kemsa) agrees:
more pressure on retail prices of drugs they produce.
The firms have to import equipment and active ingre-
dients, something that limits their ability to compete
To the best of my knowledge, the quality of lo-
cally produced medicine is largely good ex-
cept in cases where retailers fail to handle them according
with Asian counterparts on the fronts of speed and to manufacturers specifications.
cost.
Beset by high costs, industry players are now root- But even in this new campaign, manufacturers in
ing for increased uptake of their products by public Kenya still face a hostile public procumbent and dis-
health facilities. Unlike imports, it is easier for regula- posal Act 2005 in their bid to get more of the locally
tors to inspect conditions under which local medicine produced medicine to the domestic market.
is produced and guarantee the public of its quality Part of the Act gives preference margin to local firms,
and safety, KDMDA maintains. allowing them to win tenders even if they quote pric-
es which are up to 15 per cent higher than those of
70
This is what is killing local industry because
even a firm which imports everything is
still considered in the 10 percent threshold as long as it has
Kenyan drug manufacturers have so far led the way
in making cross-border investments but players gen-
erally cite conflicting regulatory regimes for slowing
the prescribed local shareholding, said Mr Palu Dha- down their expansion drive.
nani, CEO of Universal Corporation. The EAC Common market neither has a harmonised
drug registration system nor uniform manufacturing
At the moment, locals supply 30 per cent of all medi- practice with end result being that a firm has to take
cines consumed in Kenya while 70 per cent is im- between six months and three years to get products
ported. For Kemsas stores which procure largely registered in a member state, says Dr Murichu.
for government and development partners, the local Multiple registrations come with extra cost burden
manufacturers supply 70 per cent of annual orders and also mean regulatory agencies waste a lot of time
while foreign manufacturers, mainly imports from re-inspecting products that bear clearance certificates
Asian firms, ship in the remaining 30 per cent. from other member states.
Kemsa also procures non pharmaceuticals like band-
ages, syringes, etc where the ratio is 30 per cent local
and 70 per cent foreign.
The agency has been pushing for increased health
FEAPM should lead the way in push-
ing for harmonisation of
production standards to ensure quality medicine within
budget, which is currently hovering around five per East Africa. It should also lobby governments to support
cent of the GDP, to at least 15 per cent of GDP in order development of pharmaceutical market in this region,
to raise threefold the portion that trickles down for said Mr Dhanani.
public procurement of drugs.
However, whenever time comes for making a pro- Despite the entry hurdles, the very presence of EAC
curement decision, the agency will always go for Common market has increased interaction and in-
good quality that can be obtained at cheapest price, spired confidence that is set to drive cross-border in-
says Mr Githinji. vestments in the industry in future, players say.
Unlike a few years go when only Kenyan firms were
The FEAPM has been in existence in the last one year. What is your experience with it so far?
I have been part of it from inception. It has given the region a single voice, providing a platform for
pharmaceutical manufacturers from Uganda, Tanzania, Zanzibar, Rwanda, Burundi and Kenya to
share experiences. Through it, GIZ has been able to organise training sessions to industry players in
areas such as good practices in pharmaceutical manufacturing and emerging technology that could
help them cut costs and improve efficiency in production.
Through FEAPM, I see pharmaceutical firms in the region sourcing for raw material together to gain
economies of scale in future. We will also be able to push for market access together. This federation
was meant to provide linkage among manufacturers in the region. This way, a manufacturer who
gets a tender that it cannot service by internal capacity is able to join hands with other members.
Remember that manufacturers only produce a limited number of drugs. Through this Federation, it
will now be possible to join hands in supplying all drugs specified in a tender. By working together,
the industry hopes to end this habit where everybody tries to be jack of all trade and master of none.
Through this Federation, we hope to understand the dynamics of regional integration better to even-
tually conquer the 140million-people EAC market.
I bet you are conversant with World Trade Organisations trade related intellectual property rights
(WTO TRIPS). How flexible do you find them?
Generally, a manufacturer is supposed to pay for use of someone elses intellectual property for
commercial purposes. But in order to boost access to medicine and also encourage them to develop
internal capacity, the least developed countries (LDCs) such as Uganda, Burundi, Rwanda and Tan-
zania have a leeway in producing or importing generic form of essential drugs without compensat-
ing patent owners. The LDCs can achieve these through various ways including parallel importation,
duty exemption and compulsory licensing.
The truth is that WTO does not force any country to take advantage of this flexibility. Instead, it is
the LDCs which have the responsibility of coming up with national laws that capture the spirit of
WTO TRIPS. What we have seen so far, however, are national legislations that are too stringent to
allow manufacturers to take advantage of this flexibility.
72
What impact has the more than one decade of regional integration had on
pharmaceutical industry?
To say the truth, the industry does not have much to show for being part of EAC Common Market.
The process of registering drugs has not been harmonised in the region and this means we still have
to take between six months and three years to get our products registered in each member state.
Multiple registrations come with extra cost burden because a manufacturer has to pay fees in each
member state. This is not to say we are closing our eyes on increased interaction and confidence that
is driving cross-border investments in the industry. Unlike a few years go when only Kenyan firms
were keen on moving their investment across the border, we are now see potential for cross-border
investments with a company such as Aspen of Tanzania already establishing operations in Kenya.
And what would you say has been the impact of regional integration on access to medicine in
Kenya or East Africa as a whole?
Improving access to quality medicine is one area where regional integration has recorded tremen-
dous success. Previously, patients from other EAC countries used to travel all the way to Kenyas
health facilities. With many European firms established here, Kenya has been way ahead in produc-
ing latest molecules of essential drugs for cancer, HIV, etc. As a result of regional integration, a num-
ber of these firms have set up units in member states, taking with them quality medicine, expertise
and equipment that used to cause patients to travel long distances.
What specific support do you think governments aught to give manufacturers to encourage them
to raise the level of local pharmaceutical production?
In Kenya, government does not charge duty on drugs but Kenya Revenue Authority charges 2 per
cent on F.O.B as import declaration fee. In addition PPB has introduced quite a number of charges,
one of them being the 0.75 per cent on F.O.B. as retention charges. We feel these levies, together with
duty on packaging material should be removed. Within EAC as a whole, governments need to stop
levying duty on medical equipment and also remove VAT currently charged on multivitamins and
other essential drugs. They also need to appreciate that we face unfair competition from Asian firms
due to high cost of doing business here and therefore give local manufacturers preferential treatment
in procurement. The governments could go the Ghana way of banning importation of any drug that
can be produced locally.
Compared to most of products that we import from countries such as India and China, I can say
drugs produced here in Kenya are far ahead in terms of better quality. Today, in this country, we
already have a company, Universal Corporation, which has WHO Prequalification for ARV produc-
tion. In any case, unlike imports, regulators can easily inspect conditions under which local medicine
is produced.
Do you and your family take medicines produced in the local market?
Yes we do. Not only do I find them working but they are also pocket-friendly. One advantage of lo-
cally produced medicine is that the manufacturer understands environmental conditions of various
markets and therefore provides appropriate packaging for each area of the region to ensure drugs
stay longer on the shelves.
FEAPM has been in existence for one year now. What experience have you had with it so far?
I dont have much experience with FEAPM at the moment. I can say it is a good lobby group that is
just starting and a lot of programmes aught to be put in place.
With FEAPM in place, what areas of pharmaceutical production do you hope to see improvement?
The lobby should lead the way in pushing for harmonisation of production standards to ensure
theres quality medicine within East Africa. We have several companies in this region, about 52, but
just a few of them are operating. The standards of operation are very different from each other. The
FEAPM also needs to lead the way in lobbying the governments to support development of pharma-
ceutical market in the region.
First, it has to push for harmonisation of regulatory environment and ensure national regulatory
agencies respect verdict of each other. We waste a lot of time re-inspecting products that bear clear-
ance certificates from other member states. The federation should also push for government support
for regional manufacturers to reduce export of jobs.
I bet you are conversant with World Trade Organisations TRIPS. How flexible do you find them?
Unfortunately, and to the best of my knowledge, very few companies in this part of the world have
utilised WTO TRIPS. Only a few of manufacturers have taken advantage of WTO TRIPS flexibilities.
The main reason for this has been unawareness and lack of training. Lately, there have been some
awareness campaigns and training but the success has been limited.
But the border rules have been relaxed for manufacturers in the region like you to set up units or sell
drugs in any part of EAC?
We still have to register our products in each of these member states. The guidelines for pharmaceuti-
cal industry are not similar in these countries. The uniform guidelines are currently being developed
but stakeholders are not involved. I think this is one area that FEAPM needs to take up seriously.
Do you think regional integration has had any noticeable impact on availability of medicine in
the region?
Not to the extent that it is supposed to. Thats why the region is still importing almost 72 per cent of
medicine and produces only 28 per cent of its requirement.
What specific support do you think the government(s) should extend to local manufacturers to
encourage them to raise their level of production?
Kenya needs to review the public Procurement and Disposal Act 2005 because it is killing the lo-
cal pharmaceutical industry. We appreciate the part of the Act which gives 15 per cent preference
margin to local firms but at the same time the Act gives 10 per cent preference to companies where
Kenyans have 51 per cent stake. This means that even if a firm imports everything, it is still consid-
ered in the 10 percent threshold as long as it has the prescribed local shareholding. For East Africa,
we need a specific preference margin for regional firms. A good volume will ensure lower unit cost
for regions pharmaceuticals.
74
In what specific areas would you wish to see improvements if manufacturers were to gain greater
access to regional pharmaceutical market?
Inspection requires serious thought. Secondly, regulation in this part of the world has not been as
strong as it is supposed to be.
How do you rate the quality of medicine that you supply to the market?
A pharmaceutical product is not good simply because it has passed quality test or bad because it
has failed one. Medicine is manufactured under very strict and unique control system. If the whole
process is not clear, then the laboratory test of quality is useless. Let me illustrate. If you manufacture
paracetamol in a facility that also has component handling penicillin, the manufactured medicine
will pass laboratory test for paracetamol but will never reveal particles of penicillin which came in
due to poor air control. The drug cleared gets to market as paracetamol but will still cause allergy in
patients who react to penicillin.
Do you and your family take the generic drugs that come out of your facility?
Yes, all the time. Even relatives and friends prefer locally manufactured drugs.
What proportion of medicine procured for public facilities in Kenya does Kemsa obtain from
pharmaceutical manufacturers in the region?
Let me start by saying that the locals supply 30 per cent of all medicines consumed in Kenya while 70
per cent is imported. For Kemsa which procures largely for government and development partners,
the local manufacturers supply 70 per cent of what we buy while foreign manufacturers, mainly im-
ports from Asian firms ship in the remaining 30 per cent. Kemsa also procures non pharmaceuticals
like bandages, syringes, etc where the ratio is 30 per cent local and 70 per cent foreign.
What do you think needs to be done to encourage Kemsa to raise these ratios further in favour of
regional manufacturers?
Basically, increasing the funding made available to Kemsa will lead to increase in volumes of drugs
bought from regional market. The health budget currently hovers around five per cent of the GDP
and we have been pushing for 15 per cent to increase the portion of funds available to Kemsa three-
fold.
However, ours is an open tendering system. This means the locals must develop capacity to compete
with foreign firms in terms of ability to produce more and be able to supply at short notice. Remem-
ber local firms have to import equipment and active ingredients that they use meaning they have
limited room to compete on the fronts of speed and cost.
We have a quality control unit at Kemsa and also a national body (PPB) that handles that. To the best
of my knowledge, the quality of locally produced medicine is largely good except in cases where
drugs have not been transported and stored according to manufacturers specifications.
Is there anything that regulators can do to encourage the use of locally produced medicine in East
Africa?
The manufacturers need to be encouraged, and possibly assisted, to adopt good manufacturing
practices (GMP). We need to engage more with them to help them appreciate our quality control
expectation. We have been using our open forums to impress upon them that we are operating under
an environment that requires strict adherence to quality.
Yes, I have no problem using local drugs because the country has a quality surveillance system that
works. I know majority of Kenyans dont even check the label to find out where medicine on the
shelves came from because they trust the screening process by authorities.
Do you think EAC integration has improved market access for regional pharmaceutical firms?
It has created a greater potential for robustness in terms of capacity to procure, cross border supply
of raw materials and labour. Some of trade barriers and other hurdles that restrict business have been
removed. But we still have some gaps in the pace at which we are aligning and standardising poli-
cies, and also coordinating them between agencies and even among EAC member states.
What specific support do you think governments need to give manufacturers to increase their pie
of the regional market?
The governments need to provide enabling environment for doing business. Efforts to provide
cheaper electricity, clean water, and good roads will go a long way in boosting competitiveness. The
government regularly needs to identify skill gaps and organise tailored training in partnership with
key training institutions. Most importantly, the government needs to shield manufacturers from
counterfeits as well as create affordable source of capital to finance Research and Development and
also buy equipment.
It keeps varying, between 30 and 40 per cent. But almost all of this is manufactured in Kenya. To be
honest, I have never seen drugs from any of the four other EAC countries being sold here.
Does this mean regulators have locked out manufacturers from other EAC states?
No. Its a question of competition. Kenya happens to have the biggest manufacturing base in the
region. There have been some attempts by Ugandan manufacturers to penetrate the local market,
notably Quality Chemical Industries, but this has not been very successful.
So what is it that should be done to have more of locally produced medicine and those of other
firms from East Africa gaining bigger chunk of this market?
The local manufacturers are mainly out-competed by Asian firms. We need to address the issue of
competitiveness. Lets address the cost of production which has direct impact on retail prices of
drugs. Anyone who has to make a procurement decision will always go for good quality obtained at
a cheaper price. Of particular interest is the cost of energy where Asian firms appear to have advan-
tage at the moment.
76
Obviously these disparities will take time to address. What specific interventions are regulators
like PPB implementing in the meantime to promote local pharmaceutical production?
We are currently giving local firms preference in registration, what we call fast track registration.
Here in Kenya, we charge local manufacturers $500 for registration instead of the $1000 on foreign-
ers. Local manufacturers also enjoy 15 per cent preference in the public procurement and disposal
Act.
Generally, I think addressing manufacturers plight requires concerted effort of regulators, procure-
ment agencies, finance ministries and the manufacturers themselves.
There is a general feeling that being the gateway to East Africa, Kenya lets in a lot of counterfeit
drugs that have squeezed the market space for regions firms. Is this your observation as well?
I think people, especially multinationals, in a bid to preserve market share, tend to brand most of
the locally manufactured drugs, including generics, as counterfeits. Counterfeiting is a trade issue
that should only refer to infringement of proprietary rights. We have the Kenya Anti-counterfeit
Authority to deal with that. For us at PPB, we handle quality, safety and efficacy. We are concerned
with whether drugs are substandard or spurious, or falsely labelled. Most of the time, genuine drugs
become substandard because they are stored or transported in poor conditions.
So what specific steps do you think the governments and regulators should take to promote local
production of drugs?
Like I said before, this requires a holistic approach by industry lobbies, regulators and finance min-
istries to come up with the agreeable solution. The regulars have reformed registration requirement
but I think the industry could thrive with a raft of incentives such as 30-year tax holiday for those
that set up in rural areas.
The East African Health Platform (EAHP) is an c) To monitor the implementation of regional
advocacy forum for Private Sectors Organizations, health policies, legislation, practices and
Civil Society Organizations, Faith Based international commitments to ensure that
Organizations and other interest groups working on PSOs, CSOs, FBOs effectively drive and
health in East Africa. It was founded in 2012 shape sustainable development and growth
subsequent to the approval of the dialogue framework in the region;
between PSOs, CSOs and the East African d) To increase and facilitate its members
Community (EAC) Secretariat. Its mandate is derived engagement with the EAC Secretariat, its
from article 118, 127,128 and 129 of the Treaty for organs, institutions and other RECs on
the Establishment of the EAC: to provide the space, health matters;
be the voice and representative of PSOs, CSOs, e) To provide networking opportunities for its
FBOs and other Interest Groups in East Africa so as members on health policies and legislation
to effectively drive sustainable health, development regionally and internationally.
and growth in the region.
Membership to the East African Health Platform
Our Mandate Membership of the East African Health Platform is
To provide the space, be the voice and representative open to Private Sector Organizations (PSOs),
of PSOs, CSOs, FBOs and other Interest Groups of Pharmaceutical & Manufacturing Organizations,
East Africa to effectively drive sustainable health, Civil Society Organizations (CSOs), Faith Based
development and growth in the region. Organizations (FBOs) and Other Interest Groups
working on health and subscribe to the mission and
Our Vision vision of EAHP and those that may qualify to be
A healthy and productive population which enjoys members as per the provision of EAHP membership
quality and affordable health care within the EAC and guideline and constitution.
region
For more information regarding the Platform
Our Mission Contact:
To coordinate and facilitate CSOs, PSOs, FBOs and Joyce Kevin Abalo
other Interest Groups in improving the regions Coordinator
health through promoting pro-growth policies and East African Health Platform
appropriate legislation. East African Business Council Building
Olorien House; along perfect Printers Street
Objectives C/o P.O. Box 2617
a) To advocate for the development and or Phone: +255 27254 3047
reform of effective pro-growth policies and Cell: +255 752224570
appropriate legislation for the promotion of Fax: +255 27 2509997
sustainable health growth and development Arusha, Tanzania
in East Africa; E-mail: eahp.coordinator@gmail.com
b) To represent and voice its members Website: www.eahp.or.tz
position in the EAC health policy and
legislation processes;
Imprint
Published by
Federation of East African Pharmaceutical Manufacturers (FEAPM)
www.feapm.com
Photo credits
medeor/B.Breuer/B.Betzelt
Publishing date
June 2013
Contact
Federation of East African Pharmaceutical Manufacturers (FEAPM)
c/o East African Business Council (EABC)
Olorian House, Perfect Printers Street
P.O. BOX 2617
Arusha
United Republic of Tanzania
Tel.: +255 758 124 317 | +255 27 254 3047
Email: michellemaungu@yahoo.com