Family planning and female sanitary products

Family planning and female sanitary products

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Family planning and female sanitary products

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Biotechnology and Pharmaceuticals
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Quality Education (SDG 4) Gender Equality (SDG 5)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Zero Hunger (SDG 2) Decent Work and Economic Growth (SDG 8)

Business Model Description

Produce and provide affordable familiy planning products, such as condoms, and affordable female disposable and reusable sanitary products.

Expected Impact

Support family and female productivity and wellbeing.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Central
  • Western
  • Acholi
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Health Care

Development need
Uganda has a major challenge with SDG 3 - Good Health and Wellbeing, particularly indicators such as high maternal and neonatal mortality rate.(I) The index for inequality-adjusted life expectancy within the Human Development Index (HDI) framework is only 0.481, positioning Uganda as 160th in the HDI country ranking.(II)

Policy priority
Through the National Development Plan, government has increased spending on social sectors namely healthcare and education. However more investment will be required to provide basic but high-quality social services, especially in healthcare. Uganda plans to devote USD 7 million for human capital development which includes healthcare.(IV)

Key bottlenecks introduction
Uganda has achieved 75% geographical coverage of the population living within a 5 km access of any facility providing health services for communicable diseases. However, the functional coverage is much lower in reality. This is caused by insufficient coverage of comprehensive services, especially specialty and diagnostic services.(IV)

Industry

Biotechnology and Pharmaceuticals

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Family planning and female sanitary products

Business Model

Produce and provide affordable familiy planning products, such as condoms, and affordable female disposable and reusable sanitary products.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

< USD 50 million

In 2018, Uganda imported almost USD 972,000 worth of rubber sheath contraceptives and almost USD 465,000 worth of chemical hormone-based contraceptives.(4) This large demand could be satisfied through domestic production.

In 2018, the market for providing contraceptive services to the 253,000 women aged 15–19 in Uganda who currently use modern contraceptives was approximately USD 2 million.(3)

Additionally, almost 11 million females in Uganda between 15-59 years old need sanitary products to improve their hygiene and wellbeing.(34) In 2018, Uganda imported almost USD 29 million worth of sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material.(4)

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

15% - 20%

The estimated return rate for investors is 19% to 23%. This rate is a benchmark calculated based on a cost of equity with a country risk premium, reflecting an average return required by investors active in the healthcare products subsector.(23)

A case study from other emerging markets for mini-scale sanitary pads production facilities estimates a rate of return between 23% and 29%.(24),(25)

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

The investment timeframe should be considered medium term, reflecting the required capital expenditure, construction period and time needed for obtaining permits to manufacture pharmaceuticals and female disposables in Uganda.

According to a company active in the sector, the breakeven point for manufacturing sanitary towels takes 7-10 years.(38)

Market Risks & Scale Obstacles

Business - Business Model Unproven

Lack of access to family planning services and information especially in rural areas (18)

Business - Supply Chain Constraints

Distribution-related challenges including poor roads and high fuel costs (19); lack of local technology, machinery and the associated high skill expertise (19)

Market - High Level of Competition

Concerns of side effects or inconvenience.(18) Local and international competition are both possible.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

In 2018, there were 116.07 births per 1,000 adolescent females aged 15-19 in Uganda, which is higher than the already above-average ratio for Sub-Saharan Africa of 101.22 (26). This negatively affects the education of young women in the country, because the earlier a female has a child, the fewer years of education she completes.(27)

Moreover, there were 1.4 new HIV infections per 1,000 uninfected population in 2018.(1)

Another challenge for the country is insufficient access to and high cost of female sanitary products. An estimated one in every four adolescent girls doesn't attend school because of issues associated with access to sanitary products and menstruation problems.(29)

Gender & Marginalisation

In 2018, only 53.5% of females aged 15-49 who are married or in unions have their demand for family planning satisfied by modern methods.(1)

Approximately 50% of pregnancies among young females in Uganda are unplanned, which results in 30% of them ending with an abortion.(3) These abortions are usually conducted in an unsafe environment, which in turn leads to more than 10% of all maternal deaths in the country.(28)

Expected Development Outcome

Increased access to family planning products. Lowered price of family planning products. Reduced amount of unplanned pregnancies. Stabilized rate of population growth.

Reduced spread of Human Immune Virus (HIV) and venereal diseases. Increased average income per person and reduced poverty. Improved participation rate of women in the job market and in school.

Gender & Marginalisation

Higher levels of female family planning opportunities allow women to realise individual and household ambitions.

Increased female productivity and wellbeing and lower incidence of female drop-out rates due to increased access to and affordability of sanitary products.

Primary SDGs addressed

Good health and well-being (SDG 3)
3 - Good Health and Well-Being

3.1.1 Maternal mortality ratio

3.3.1 Number of new HIV infections per 1,000 uninfected population, by sex, age and key populations

3.7.1 Proportion of women of reproductive age (aged 15–49 years) who have their need for family planning satisfied with modern methods

Quality Education (SDG 4)
4 - Quality Education

4.6.1 Proportion of population in a given age group achieving at least a fixed level of proficiency in functional (a) literacy and (b) numeracy skills, by sex

Gender Equality (SDG 5)
5 - Gender Equality

5.6.1 Proportion of women aged 15–49 years who make their own informed decisions regarding sexual relations, contraceptive use and reproductive health care

Secondary SDGs addressed

No Poverty (SDG 1)
1 - No Poverty
Zero Hunger (SDG 2)
2 - Zero Hunger
Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

Directly impacted stakeholders

People

Women, adolescents, couples, children, households benefitting from greater family planning opportunities

Gender inequality and/or marginalization

Women particularly are expected to remain in school and join the job market

Planet

Environment affected to a lesser degree by pollution from unsuitable sanitary products

Indirectly impacted stakeholders

People

Society at large with greater productivity and more planning security

Public sector

Healthcare system, education system, government

Outcome Risks

Increased pollution caused by latex condoms and disposable sanitary products, which may pose a threat to aquatic systems if not disposed of properly (17)

Impact Risks

Required doctor consultations may limit uptake of contraceptives (16)

Impact Classification

C—Contribute to Solutions

What

Positive impact on national health, alleviation of poverty levels and productivity. Moreover, it is likely that more women will join the job market and remain in school.

Who

Society in general with a focus on females who face challenges with family planning and menstrual poverty that disrupt their lives

Risk

Although the business model is market proved, production- and distribution-related challenges as well as socio-cultural barriers exist.

Impact Thesis

Support family and female productivity and wellbeing.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Uganda One Health Strategic Plan 2018 - 2022: This plan identifies reproductive health and reducing the spread of sexually transmitted diseases as one of the key priorities for Uganda's health sector.(5)

Adolescent Health Policy Guidelines and Service Standards: These standards aim to provide and increase availability and accessibility of appropriate, acceptable, and affordable quality information and health services to adolescents.(9)

Third National Development Plan (NDPIII): This plan recognises the need for family planning and improved access to reproductive health as one of the key challenges hampering Uganda's development and a significant obstacle to poverty reduction.(7)

National Drug Authority Strategic Plan July 2016 - June 2021: This plan emphasises improving the quality of medicines and healthcare products in Uganda.(8)

In response to the challenge, the Ugandan Government established the Menstrual Hygiene Management Charter in 2015, which supports non-government and other organisations to provide menstrual training for adolescents and teachers, and monitor the menstrual hygiene facilities in schools. (33)

Financial Environment

Fiscal incentives: Raw materials for manufacturing medicaments are exempt from all taxes under the 5th schedule of the East African Community Customs Management Act 2004.(6) Medicated cotton wool is exempt from value added tax (VAT) import duties.(6)

Regulatory Environment

National Drug Policy and Authority Act Cap. 206: This Act establishes a national drug policy and a national drug authority to ensure the availability of drugs and safeguard the appropriate use of drugs.(10)

Guidelines on Good Distribution Practice for Pharmaceutical Products: These guidelines require that drugs are handled properly and that a reasonable degree of control over the acquisition, storage, sale, supply or disposal of drugs is maintained.(11)

Guidelines on Submission of Documentation for Marketing Authorisation of a Pharmaceutical Product That Is Prequalified by World Health Organisation or Approved by a Stringent Regulatory Authority: These guidelines outline the procedure and list of documentation required for submission.(13)

Reusable sanitary towels - Specification: This document determines the requirements and test methods for reusable sanitary towels (including reusable panty liners) for external use, including absorbency levels, packaging, materials and marking.(36)

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

Reckitt-Benckiser, DKT International, Marie Stopes Kenya, Pfizer Inc., Innolatex (Thailand) Ltd, Hartwood Enterprises, Merck Co. Inc, AFRIpads

Government

Ministry of Health, Menstrual Hygiene Management Charter, Ministry of Education, Science, Technology and Sports, WoMena

Multilaterals

World Bank, World Health Organization (WHO)

Non-Profit

United States Agency for International Development (USAID), Bill and Melinda Gates Institute for Population and Reproductive Health, Women Across Frontiers, Reproductive Health Uganda, International Planned Parenthood Federation (IPPF)

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
urban

Central

Because the largest cluster of industrial parks is located in Kampala, investors can profit from several financial incentives associated with locating manufacturing activities in this location.(20) Additionally, Kampala hosts the largest proportion of skilled workforce in Uganda (21).
rural

Western

The lowest proportion of the population using modern contraceptive methods is in the Northern and Western parts of the country.(22)
rural

Acholi

The lowest proportion of the population using modern contraceptive methods is in the Northern and Western parts of the country.(22)

References

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    • (I) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. (II) United Nations Development Programme. Briefing note for countries on the 2019 Statistical Update: Uganda. (III) Government of Uganda (2016). Review Report Of Uganda’s Readiness For Implementation Of The 2030 Agenda. (IV) National Planning Authority. National Development Plan III (NDPIII) 2020/21 – 2024/25.