To promote greater spread of Black business ownership in the pharmaceutical sector and provide consumers with competitively priced, quality product choices essentially compensating for the years of lost opportunity in transforming and developing the pharmaceutical sector and its contribution to the South African economy.
Longer term to establish a compliant local GMP manufacturing cluster that will supply a minimum of 30% of all chronic and essential medicines consumed on the continent by 2033 and scale this up to 60% by 2040 via import substitution.
Black, small healthcare professionals have been locked out and business diverted to big Corporates. The SA market is currently worth R56.4 Billion and Black Owned companies constitute less than 1% of the market.
Black suppliers have been unable to penetrate the market as only products listed on formularies are used by Designated Service Providers.
Profitability of emerging, small Black owned companies is seriously eroded by higher logistic and marketing fees charged by private, big pharma chains.
Legislative impediments include insignificant price advantages for domestic manufacturers in government tenders for the current stage of Black owned enterprises.
Limited synergistic effort between state and current Black owned local manufacturers.
Limited access to funding
Structural imbalances i.e. no local API production. The vast majority of API greater than 95% and a significant portion of finished products are imported into SA. SA produces 35% of the volume of pharmaceuticals consumed locally, with 65% imported.
Market access impediments
Lack of Dept of Health strategies empowering Black owned pharma companies in South Africa
Lack of infrastructure for pharmaceutical manufacturers in Gauteng exacerbating job losses and reducing contribution to the GDP of the province.
Develop local companies and manufacturing competencies.
Tap into the African pharmaceutical market opportunity which one of the fastest growing worldwide.
Build a knowledge-based sector with the potential of contributing to the economy via job creation.
Improve the trade balance of imports and exports by diminishing reliance on imported products.
Dependence on imports has translated into a negative pharmaceutical trade balance.
Reduce the risk of supply delays and out of stocks exacerbated by currency fluctuations.
BPIA is committed to unlocking the opportunity of establishing an API production plant in SA via access to capital, technology and markets.
Pandemic preparedness, prevention, response and uninterrupted supply chain delivery is a priority.
By reducing reliance on imports the burden on the SA economy can be reduced.
Narrowing the gap between technology and production is key.