Essential Medicine and Drugs Manufacturing
Essential Medicine and Drugs Manufacturing
Business Model Description
Establish and operate manufacturing facilities producing essential medicine and drugs with a specific focus on intravenous fluids products.
Expected Impact
Produce affordable pharmaceuticals, especially intravenous fluids products, to meet local market needs and offer medication at affordable prices.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
Disclaimer
UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.
The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.
Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.
Country & Regions
- Namibia: Otjozondjupa Region
- Namibia: Zambezi Region
- Namibia: Ohangwena Region
- Namibia: Oshikoto Region
Sector Classification
Health Care
Development need
While Namibia's spending levels on healthcare are high, estimated at 9% of GDP in recent years, and consistent with the Abuja target of 15%, the country's healthcare system is held back by substantial inefficiencies and inequalities and poor health outcomes; key challenges being the lack of human resources and limited productivity (IV).
Policy priority
In Namibia’s 5th National Development Plan (NDP5), the Government pledged to improve the country's health sector and aims to ensure that by 2022 all of Namibia's citizens will have access to quality health care (II).
Gender inequalities and marginalization issues
Health care, among others, generates significant multipliers on output, GDP and income. An increase in final demand for among others health care generates the highest impact on low-income households, and leads to the largest income multipliers for unskilled labourers (VI).
Biotechnology and Pharmaceuticals
Policy priority
To achieve SDG 3 on Good Health and Wellbeing, the Government seeks to ensure the wellbeing of all Namibians, among others (V). In the Harambee Prosperity Plan, enhanced access to treatment facilities for non-communicable diseases and universal health coverage are priority areas for social progression (III).
Biotechnology and Pharmaceuticals
Pipeline Opportunity
Essential Medicine and Drugs Manufacturing
Establish and operate manufacturing facilities producing essential medicine and drugs with a specific focus on intravenous fluids products.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
The public pharmaceutical market in Namibia is worth NAD 2.6 billion (USD 175 million), as of 2017. It encompasses the essential medicines market and the antiretroviral drugs (ARVs) market, which are roughly at a 2:1 ratio (2).
Indicative Return
20% - 25%
Benchmark projects, namely Windhoek Pharmaceuticals and MediPack Pharmaceuticals, achieved IRRs of 25% (9).
Another benchmark project, Bio Solve (Pty), is expecting an IRR of 18-25.36% depending on the size and scale of the facility (14).
Investment Timeframe
Long Term (10+ years)
Based on a business plan of a benchmark project, a 10-year investment timeframe is expected (14).
Market Risks & Scale Obstacles
Market - Highly Regulated
Impact Case
Sustainable Development Need
Namibia is largely dependent on imports of essential drugs, exposing the country to supply risks and increasing costs for Namibia's population. For intravenous fluids, no local production exists and all products are imported mainly from South Africa (3).
The management of pharmaceuticals has been strained by procurement delays caused by small local procurements at higher prices, logistics and supply-management constraints to deliver medicines to facilities, and lack of communication on stock-management between facilities and central management (15).
Gender & Marginalisation
Marginalised groups, such as users of antiretroviral drugs (ARVs), suffer particularly from the unavailability and high costs of essential medication.
Expected Development Outcome
Improved essential drugs and pharmaceuticals security, and reduced dependency on imports of medicine.
Reduced dependency of public and private hospitals on imports of hospital supplies.
Greater efficiency and sustainability of Namibia's health care services, furthering the industrial development of the country (6).
Gender & Marginalisation
With the secure of essential medicine, basic healthcare provision is improved especially for marginalised communities.
Primary SDGs addressed
3.b.3 Proportion of health facilities that have a core set of relevant essential medicines available and affordable on a sustainable basis
3.8.1 Coverage of essential health services
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Public sector
Indirectly impacted stakeholders
People
Planet
Corporates
Outcome Risks
Local manufacturing of medicine and drugs results in pharmaceutical waste, which can cause danger to people and the environment if not disposed responsibly.
Impact Risks
Uptake of locally manufactured pharmaceuticals may be limited at the beginning as health facilities and end consumers get used to medicine and drugs produced in Namibia and trust in their quality.
Impact Classification
What
The outcome is likely to be positive, important and intended because local manufacturing of essential medicine and drugs makes pharmaceuticals more accessible and affordable.
Risk
While medication manufacturing is established internationally, it is a new model for Namibia, which competes with international markets and operates under Government imposed health care regulations.
Impact Thesis
Produce affordable pharmaceuticals, especially intravenous fluids products, to meet local market needs and offer medication at affordable prices.
Enabling Environment
Policy Environment
Harambee Prosperity Plan 2, 2021: Outlines that the Government aims to improve and maintain a service level of 90% at the Central Medical Stores, by ensuring timely delivery and availability of pharmaceuticals and clinical supplies at health facilities (7).
Namibia National Drug Policy, 1998: States the need to establish medicines information adverse reaction monitoring services in the country (8).
Financial Environment
Financial incentives: The newly established Namibia Investment Promotion and Development Board (NIPDB) targets support towards a national pharmaceutical industry (13).
Fiscal incentives: Pharmaceutical manufacturers pay only 18% taxes for 10 years, after which it reverts to the standard 35%. Exporters of manufactured goods receive 80% income tax allowance on income derived from exporting manufactured goods (4).
Regulatory Environment
Medicines and Related Substances Control Act, 2003: Provides for the establishment of a Namibia Medicines Regulatory Council, for the registration of medicines intended for human and for animal use, and for the control of medicines and scheduled substances (10).
Namibia Medicines Regulatory Council (NMRC): A statutory body established based on the Medicines and Related Substances Control Act to regulate the use of medicines in Namibia (11).
Therapeutics Information and Pharmacovigilance Center (TIPC): Has the mandate to improve the rational and safer use of medicines in Namibia (12).
Marketplace Participants
Private Sector
Investors such as EOS Capital running the Namibia Infrastructure Development and Investment Fund (1). Businesses such as Fabupharm, which has grown to a fully-fledged pharmaceutical manufacturer.
Government
Ministry of Health and Social Services, Medical Council, Namibia Medicines Regulatory Council (NMRC), Therapeutics Information and Pharmacovigilance Center (TIPC), Namibia Industrial Development Agency (NIDA).
Public-Private Partnership
The Namibia Investment Promotion and Development Board (NIPDB) seeks to promote investments specifically into the pharmaceutical industry (13).
Target Locations
Namibia: Otjozondjupa Region
Namibia: Zambezi Region
Namibia: Ohangwena Region
Namibia: Oshikoto Region
References
- (I) SDG Center for Africa and Sustainable Development Solutions Network, 2019, Africa SDG Index and Dashboards Report 2019, Kigali and New York: SDG Center for Africa and Sustainable Development Solutions Network, https://sdgcafrica.org. II) Republic of Namibia, National Planning Commission, 2017, Namibia's 5th National Development Plan (NDP5), https://www.npc.gov.na/?wpfb_dl=294. III) Harambee Prosperity Plan II, 2021-2025, 2021, Republic of Namibia, https://www.met.gov.na/files/downloads/f0b_Harambee%20Prosperity%20Plan%20II.pdf. IV) Namibia - Health Sector Public Expenditure Review, 2019, Washington, D.C, World Bank Group, https://elibrary.worldbank.org/doi/pdf/10.1596/32111. V) Republic of Namibia, National Planning Commission, 2018, Implementation of Sustainable Development Goals, Voluntary National Review, https://sustainabledevelopment.un.org/content/documents/19880New_Version_Full_Voluntary_National_Review_2018_single_1_Report.pdf. VI) DNA Economics, 2021, SAM Multiplier Analysis for the SDG study in Namibia, Six Capitals.
- (1) EOS Capital Website, About NIDIF, https://www.eoscapital.com.na/nidif.
- (2) Doré Pharmaceuticals, 2017, Doré Pharmaceuticals Prospectus, https://www.unido.org/sites/default/files/files/2018-03/Dore%20Pharmaceuticals%20Pty%20Ltd.%2C%20Namibia_Company%20Presentation_01032018%20Bonn.pdf.
- (3) Namibian Industrial Development Agency (NIDA)., 2021, Potential Bankable projects, available upon request from NIDA.
- (4) PWC, 2021, Republic of Namibia Corporate - Tax credits and incentives, https://taxsummaries.pwc.com/republic-of-namibia/corporate/tax-credits-and-incentives.
- (5) World Bank, 2019, Namibia Public Expenditure Review Health Sector Public Expenditure Review, https://documents1.worldbank.org/curated/en/268141563376806867/pdf/Namibia-Health-Sector-Public-Expenditure-Review.pdf.
- (6) Monasa / UNDP interview with EOS Capital, conducted on 14 December 2020.
- (7) National Planning Commission (NPC), 2021, Harambee Prosperity Plan 2, available upon request from NPC.
- (8) Ministry of Health and Social Services, 2011, National Guidelines for Medicines Safety Surveillance, https://www.who-umc.org/media/1088/namibia.pdf.
- (9) Study on behalf of Windhoek Pharmaceuticals by Dr. Loneson Mondo (MBA, DBA), 2011, Available on request from Loneson Mondo (lonesonmondo@gmail.com).
- (10) Medicines and Related Substances Control Act, 2003, Republic of Namibia, https://laws.parliament.na/annotated-laws-regulations/law-regulation.php?id=146.
- (11) Namibia Medicines Regulatory Council (NMRC), Ministry of Health & Social Services, https://nmrc.gov.na.
- (12) Therapeutics Information and Pharmacovigilance Center (TIPC), Ministry of Health & Social Services, https://nmrc.gov.na/tipc1.
- (13) Namibia Investment Promotion and Development Board (NIPDB), 2021, https://nipdb.com.
- (14) Bio Solve (Pty) Ltd, 2021, Manufacturing of Intravenous Fluids in Namibia Business plan, Available upon request from the Namibia Industrial Development agency (NIDA).
- (15) World Bank, 2019, Namibia Public Expenditure Review: Health Sector Public Expenditure Review, https://documents1.worldbank.org/curated/en/268141563376806867/pdf/Namibia-Health-Sector-Public-Expenditure-Review.pdf.
- (16) Namibia Industrial Development Agency (NIDA), 2020, NIDA’s Project Profiles, Available upon request from NIDA.
- (17) PEPFAR, 2020. Namibia Country Operational Plan (COP) 2020: Strategic Direction Summary. US State Department, https://www.state.gov/wp-content/uploads/2020/07/COP-2020-Namibia-SDS-FINAL.pdf.