The development of the Ethiopian local pharmaceuticals manufacturing sub-sector has been very much limited in terms of production capacity, technology acquisition, creation of employment opportunity and investment. Most of the local manufacturers are not compliant with international good manufacturing practice (GMP), and no single product has been prequalified by WHO[1].

There are approximately 200 importers of pharmaceutical products and medical consumables in Ethiopia. The local industry comprises 22 pharmaceutical and medical suppliers and manufacturers, with 9 involved directly in the manufacture of pharmaceutical products. Most of the manufacturers operate below their capacities and supply only about 20% of the local market. In 2014, local pharmaceutical companies supplied products to the value of US$ 44.2 million. They have limited product portfolios and are thought to be able to supply only 90 of the more than 380 products on the national essential medicines list. Around 35–40% of their total output is supplied to the private sector at a price premium of 10%. The annual private pharmaceutical market in Ethiopia is estimated to be worth US$ 100 million. In 2014, the Ethiopian industry exported pharmaceutical products worth almost US$ 2 million, which was far below the GTP-I target of US$ 20 million. The bulk of the exports were accounted for by Sino-Ethiop, which exported empty gelatine capsules. The ownership of the companies is diverse and ranges from two large companies to smaller entities that are joint ventures between Ethiopian entrepreneurs and foreign investors from China, India, Jordan, Saudi Arabia, Sudan and the United Arab Emirates.

Here is a list of pharmaceutical manufacturing companies in Ethiopia according to the Health Sector Development Programme IV 2010/11 – 2014/15(Final Draft) prepared by Ministry of Health, Federal Democratic Republic of Ethiopia in October 2010:

1)      Addis Ababa Pharmaceutical

2)      Asmi PLC

3)      Cadila Pharmaceuticals (Ethiopia) PLC

4)      Dana Trading

5)      East Africa

6)      Ethiopia Pharmaceutical

7)      National Veterinary

8)      Pharmacure

9)      Rx Africa

10)   Sino –Ethiopia Associate Africa PLC

11)   Moab

12)   Desta

13)   Bethelhem Pharmaceutical

14)   Etab Syringe

15)   Bisol

16)   Life Line

17)   Access Bio, Inc. (Ethiopian branch)

18)   Zenith Gebs Eshet PLC[2]

The healthcare market growth has attracted several international companies to invest in Ethiopia, as evidenced by activities of Cadila, Julphar, GlaxoSmithKline, Sandoz and Hikma Pharmaceuticals[3].

[1] Ibid., p.V.

[2] Health Sector Development Programme IV 2010/11 – 2014/15(Final Draft), p.13.

[3] Ibid., p.9.