The Botswana Investment and Trade Centre (BITC), in partnership with the private sector, is looking into boosting the local pharmaceutical sector to develop homegrown medicine in a globally competitive pharma market.ย
This is the general intention of BITC and its stakeholders as they prioritise the development of local primary manufacturing and strategic sub-sectors to build a sustainable, regionally competitive, and innovative pharmaceutical ecosystem, BITC chief executive, Keletsositse Olebile said during a pharmaceutical firm sector dialogue this week in Gaborone.
The dialogue follows a high-level report conducted with Africa RISE, a European Union-funded initiative.ย
In his opening remarks, Olebile mentioned that in 2023, the BITC partnered with the EUโs Africa RISE (Reform for Investment and Sustainable Economies) program to undertake a study on Botswana’s pharmaceutical sector. The objective of the study was to assist Botswana in developing its pharmaceutical industry to produce medicines while remaining competitive locally and regionally.
โThis is why we are gathered here todayโto deliberate on the findings of the study and agree on how we can modernise the sector to become more competitive,โ he said.
Africa RISE is a demand-driven regional technical assistance facility that promotes business development and improves the investment climate in Eastern Africa, Southern Africa, and the Indian Ocean region. It supports the EU partnership with Africa on sustainable investments, jobs, inclusive green growth, and decent work.
Olebile highlighted that BITC aims to maintain momentum by collaborating with the industry to translate these findings into tangible outcomes. He also emphasised Botswana’s ability to tap into emerging international opportunities, such as those initiated under the Team Europe program, which aims to enhance vaccine, medicine, and health technology manufacturing across Africa. This initiative is backed by โฌ1 billion from the EU budget and contributions from European development finance institutions such as the European Investment Bank (EIB).
Discussing the potential of Botswanaโs pharmaceutical industry, Olebile revealed that the sector was valued at over P2.6 billion (US$193 million) by 2022, with a forecast of P2.7 billion (US$205 million) by 2025. He expressed optimism about the sectorโs potential to expand and penetrate regional and international markets.
Additionally, Olebile cited data from Fitch Solutions, which showed that pharmaceutical imports grew by 14 percent year-on-year in 2023, amounting to P2.2 billion. Over 68 percent of these imports came from South Africa and India. He noted that the growth of the pharmaceutical sector is largely driven by healthcare spending, which accounted for 5.8 percent of Botswana’s GDP in 2023, with a total expenditure of US$1.3 billion. He further emphasised that the aggressive development of the local pharmaceutical industry could help reduce reliance on imports.
Olebile highlighted Botswana’s proven capability to host sophisticated industries, pointing to the Botswana Harvard AIDS Institute Partnership (BHP) as a world-class research center focused on HIV/AIDS research, training, and capacity building. He also noted the potential for Botswana to harness emerging opportunities and scale up its position as a regional player in the pharmaceutical sector.
During his presentation on the findings of Botswanaโs Pharmaceutical Sector Study, BITC Director of Research Moemedi Mokgosi explained that the study mapped out the countryโs pharmaceutical ecosystem to better understand its potential. The report suggested a model for the future development of Botswanaโs pharmaceutical sector and identified key investment opportunities.
โOnce we fully understand Botswanaโs existing capacity, we will create a model to guide the development of the pharmaceutical sector,โ Mokgosi said.
He also mentioned that the research team discovered significant variations in the countryโs ability to develop its pharmaceutical sector, due to its status as an emerging industry. To address this, the team developed a map of the pharmaceutical ecosystem, identifying strategic sub-sectors that could differentiate Botswana from other countries in Sub-Saharan Africa.
Mokgosi emphasised that enablers are essential to creating a conducive investment framework for the sector. Led by the Botswana Vaccine Institute, he said the country could scale up its vaccine manufacturing capabilities to become the largest regional producer and supplier of human and veterinary vaccines. Additionally, he pointed to the advantage of Botswanaโs available raw materials from the mining industry, which could be used to produce medicines. Through the Botswana Medicines Regulatory Authority (BOMRA), the country could also lead in medical certification and training services.
Mokgosi highlighted further opportunities for developing conventional medicines and packaging/re-packaging products, including biopharmaceuticals such as vaccines for human and animal use. He also pointed to strategic sub-sectors like raw plant materials (medicinal plants), bovine-derived ingredients (pharmaceutical and food-grade), and materials from the mining industry (pharmaceutical-grade salts and IV fluids). Additionally, he mentioned value-added herbal medicines and various regulatory and certification services.
โTo achieve this, we must be bold and tap into our biodiversity, particularly Indigenous plants that could be utilised to grow the pharmaceutical sector,โ Olebile remarked.
He concluded by suggesting the broadening of policy frameworks to encourage collaboration between traditional medicine practitioners, NGOs, the private sector, and local universities. He emphasised the importance of creating a national database of indigenous medicinal plants, animal derivatives, mineral salts, their uses, and methods of identification. Olebile also called for research into the effectiveness and toxicity of these natural resources to promote their preservation and sustainable use.
Mokgosi also referred to the “Pharmaceutical Manufacturing Industry” report, which highlights that only 20 African countries have production capacity, with 8 accounting for about 80 percent of total local production. Most of this production focuses on generic products, which represent around 70 percent of local output.
