Africa pharma may be the only pharmaceutical market where genuinely high growth is still achievable. Here\u2019s what\u2019s driving that strength and how companies should react.<\/p>\n
The value of Africa\u2019s<\/strong> pharmaceutical industry jumped to $20.8 billion in 2013 from just $4.7 billion a decade earlier. That growth is continuing at a rapid pace: we predict the market will be worth $40 billion to $65 billion by 2020 (exhibit). That\u2019s good news for multinationals and pharmaceutical companies seeking new sources of growth as developed markets stagnate. It\u2019s also good news for patients, who have gained access to medicines previously unavailable on the continent. Yet it isn\u2019t enough to know where the industry\u2019s next growth engine can be found. Leaders must also understand what is driving growth, what challenges they are likely to face, and how to collaboratively work with health systems to win in this complex environment.<\/p>\n Africa\u2019s pharmaceutical markets are growing in every sector. Between 2013 and 2020, prescription drugs are forecast to grow at a compound annual growth rate of 6 percent, generics at 9 percent, over-the-counter medicines at 6 percent, and medical devices at 11 percent. Three factors are driving this growth:<\/p>\n Reduce your translation costs and risks for your African audience!<\/p>\n In a world of slowing and stagnating markets, Africa pharma represents perhaps the last geographic frontier where genuinely high growth is still achievable. Early movers can take these four steps to pursue competitive advantage:<\/p>\n In a world of slowing and stagnating markets, Africa pharma represents the last geographic frontier where high growth is still achievable. As ever, the key to success lies in understanding individual markets in granular detail. Early movers with the right approach should be able to capture competitive advantage. Africa will continue to grow for the foreseeable future. Now is the time for drug companies to decide whether they want to be part of that growth and, more important, play an active role in improving public health.<\/p>\n Tania Holt<\/strong> is an associate principal in McKinsey\u2019s Johannesburg office, Mehdi Lahrichi<\/strong> is an associate principal in the Casablanca office, and Jorge Santos da Silva<\/strong> is a principal in the Zurich office.<\/p>\n The authors wish to thank Amal Abahmaoui and Jean Mina for their contributions to this article.<\/p>\n","protected":false},"excerpt":{"rendered":" Africa pharma may be the only pharmaceutical market where genuinely high growth is still achievable. Here\u2019s what\u2019s driving that strength and how companies should react. The value of Africa\u2019s pharmaceutical industry jumped to $20.8 billion in 2013 from just $4.7 billion a decade earlier. That growth is continuing at a rapid pace: we predict the market will be worth $40 billion to $65 billion by 2020 (exhibit). That\u2019s good news for multinationals and pharmaceutical companies seeking new sources of growth as developed markets stagnate. It\u2019s also good news for patients, who have gained access to medicines previously unavailable on the\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[142,71,121,139,146,162],"tags":[],"blocksy_meta":"","yoast_head":"\nWhat\u2019s driving growth<\/h2>\n
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What it takes to win<\/h2>\n
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\nAbout the author(s)<\/h4>\n