PHARMACEUTICALS EXPORT PROMOTION COUNCIL

(Set up by Ministry of Commerce & Industry, Govt., of India)

H.O.: 101, Aditya Trade Centre, Ameerpet, Hyderabad – 500038
Tel: 040-23735462/23735466, Fax: 91-40-23735464
Email: info@pharmexcil.com

Report on ETHIOPIA

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ETHIOPIA :

Following are the demographic statistics of Ethiopia.

SL. No Parameter Description

1 Region  Africa 
2 Country  ETHIOPIA 
3 Capital  Addis Ababa 
4 Population  90,873,739(July 2011est) 
5 Population growth rate   (%)  3.194 %( 2011 est.) 
6 GDP (purchasing power parity)  $ 84.02 (2010 est.) 
7 GDP ‐ real growth rate   (%)  7% (2010 est.) 
8 GDP ‐ per capita (PPP)  $ 1000 (2010 est.) 
9 Exchange rates  1$ = 14.4 Birr (2010 est.) 
10 Population below poverty line  38.7% (FY 05/06 est.) 
11 Age structure (%)  0‐14 years: 46.3% 
15‐64 years: 51% 
65 years and over: 2.7% (2011 est.)   
Source: CIA World Fact Book updated to July 2010

Ethiopia is a member of COMESA and has regulatory laws pertaining to the Group.

Ethiopia does not have a highly developed drug-manufacturing sector. Domestic market is
highly dependent on imports as the local manufacturing units cover only a small portion of the
requirement for domestic needs. The Ethiopian pharmaceutical manufacturing is the oldest and
the only pharmaceutical manufacturing unit owned by the Government, the rest being in the
private sector.

It is estimated that the Ethiopian market is around US$ 200 million, in the year n 2008 which can
be divided as under:

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(i) Purchases/Imports through tenders by Ministry of

Health and NGOs (TB, HIV and malaria drugs) : US$ 100 million

(ii) Purchases/Imports through tenders by PHARMID,

Government owned company (general medicines): US$ 30 million

(iii) Purchases/Imports by Trade market

(general medicines) : US$ 70 million

Most major international companies have presence in Ethiopian market. These include Glaxo,
Pfizer, Ranbaxy, Cadila, Novartis, etc.

The market is growing at about 8-10% per annum. Of this, 75-80% demand is met through
imports and the balance by local manufacturers. There are no local manufacturers to produce TB
and HIV medicines and these are totally imported. None of the local manufacturers presently
comply with the cGMP practices.

The Ethiopian Pharmaceutical and Medical Supplies Manufacturers Association noted that at the
moment the staggering and young industries in the sector are being hit hard by the extremely
high tariff rates imposed on their import of raw materials making it hard for them to remain
competitive in the market. According to the President of Ethiopian Pharmaceutical and Medical
Supplies Manufacturers Association, finished medical products that are imported to the country
are taxed only five per cent rate while more than thirty percent taxation is levied on the imported
raw materials. So far four companies are temporarily out of production. The Association is
pursuing for zero tariffs on raw materials.

v East African Pharmaceuticals PLC is a joint venture company of nationals from Sudan
and UK, which manufactures human, and veterinary medicines and drugs.

v Sunshine Pharmaceuticals is a joint venture between Jianxi Corporation, a Chinese state

company, and an Ethiopian investor. The plant will manufacture 39 different types of medical
products, with focus on third-generation medicines and anti-viral capsules and tablets. A second
plant will manufacture penicillin. This would make it the second penicillin manufacturing
company in Ethiopia after the state-owned Ethiopian Pharmaceutical manufacturing Company.

Cadila Pharmaceuticals Ethiopia PLC

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 A joint venture between India’s Cadila Pharmaceuticals, (the majority share holder) and an
Ethiopian firm, Almeta IMPEX, started production at a new, Birr 100 million (US$11.4 million)
facility in Akaki town, Ethiopia on September 22, 2007. The plant has the capacity to
manufacture 390 million tablets, 165 million capsules and 1.44 million liters of liquid medicines
annually. Cadila Pharmaceuticals Ethiopia PLC (CPEL) mainly focuses on therapeutic areas
such as Cardiovascular, Anti Diabetes, gastroenterology (anti-acids, anti-ulcerative), Anti-
Infective, Anti-Depressants, Anti Fungal, Anti-TB, Anti Malarial, Anti Retroviral, Anti-
Amoebic, Haematinics, Anti Allergic, Pain killers, Multi vitamins, etc.

India’s export in this sector mainly consists of finished products and raw materials. Major drugs
and pharmaceutical items exported by India to Ethiopia include vaccines, antibiotics, penicillin,
medicaments of alkaloids or derivatives, medicaments of other hormones, vitamins, anesthetics
medicaments of mixed/unmixed products, Adhesive dressings, wadding, gauze, first-aid kits, etc.

India is the major exporter of Bulk and formulations to Ethiopia

Following are the statistics of pharmaceutical trade.

Ethiopia Table-1

Fig:1 India's Pharmaceuticals Trade with Ethiopia(Figs are in US$ mn & INR Cr)

Export  Import 
Category 2007‐08  2008‐09 2009‐10 CAGR  (2007‐ 2007‐08 2008‐09  2009‐10 CAGR 
  09)    (2007‐09) 
%  % 
USD  INR Cr  USD  INR Cr  USD  INR Cr  USD   INR   USD  INR  USD  INR Cr  USD  INR  USD  IN
mn  mn  mn  mn  Cr  mn  mn  Cr  R 
Bulk Drug 1.7  6.8  0.89  4.0  1.83  8.66 3 12    

Formulation 33.17  133  47.45  217  34.36  162 1.3 10    

Herbal              

Source CMIE/DGCIs /Pharmexcil research

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Ethiopia Table-2

Imports of Ethiopia's Bulk in USD million       
Country  2007  2008 2009 % share  YOY%  CAGR 
China  2.01  2.49 4.05 33.97 62.72 42% 
Oman     2.53 3.18 26.66 25.78 424% 
India  4.46  3.68 3.14 26.42 ‐14.7 ‐16% 
Denmark  0  0.10 0.38 3.19 >>>  >>>% 
USA  0.01  0.0 0.3 2.56 
Germany  0.07  0.01 0.24 2.04 1674.98 81% 
South Africa  0.08  0.30 0.24 2.00 ‐21.29 68% 
United Kingdom  0.05  0.01 0.24 1.99 2120.36 117% 
Grand total  6.99  9.43 11.91 100.00 26.29 31% 
Source UN COMTRADE       

Ethiopia Table-3

Imports of Ethiopia’s Formulations in USD million
Country  2007  2008 2009 %share YOY% CAGR 
India  35.08  70.25 75.62 23.40 7.64 47% 
USA  37.16  13.42 57.19 17.70 326.31  24% 
Rep. of Korea  29.26  31.55 29.12 9.01 ‐7.71 0% 
Italy  6.51  2.23 54.26 16.79 2327.84  189% 
Netherlands  21.54  11.53 31.14 9.64 170.01  20% 
Denmark  15.48  14.29 14.78 4.57 3.42 ‐2% 
Belgium  31.92  4.20 6.80 2.10 61.68 ‐54% 
China  3.53  8.46 8.17 2.53 ‐3.38 52% 
Germany  5.83  7.65 5.11 1.58 ‐33.23  ‐6% 
Switzerland  2.84  4.59 6.73 2.08 46.68 54% 
Grand total  216.01  213.12 323.14 100.00 51.62 22% 
Source UN COMTRADE      

India has lost its market share both in bulk and formulation sector though marginally in case of
formulations. In bulk drug sector china has grown considerably at 62.72 Year on year while we
have grown negatively by almost 15%( Refer Ethiopia Table-2). India has been pushed down to
3 rd position as an exporter of API’s to Ethiopia. China has cornered most of our business.

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