Uganda, a member of the East African Community, is home to 41.5mn people. It is a small and underfunded, and generic-dominated pharmaceutical industry. A combination of low per capita spending in a youth-dominated, highly ruralized population, will limit opportunities for innovative drug makers looking to launch patented medicines in Uganda.

Opportunities for foreign firms will be largely indirect, with potential licensing agreements with local players that are able to advance their manufacturing capabilities over the coming years. In August 2018, Uganda-based Cipla Quality Chemicals launched an IPO to float 657mn shares. In 2017, pharmaceutical expenditure in Uganda reached a value of USD414mn. 76% of this value is met by the private sector. In 2018, estimates are that the market may reach USD434mn and by 2022, the market will be valued at USD519mn, experiencing a five year CAGR of 4.7%. In 2017, per capita drug expenditure was USD10- which is extremely low by international standards. Additionally, in 2017, pharmaceutical spending is estimated to have accounted for 21.9% of total healthcare expenditure. Nevertheless, in comparison with many other African markets, Uganda offers greater commercial promise and a more stable overall business environment. Due to low purchasing power, generic drugs comprise the majority of Uganda’s pharmaceutical market.

Patented drugs comprise a small market share of medicines, as low per-capita drug expenditure continues to limit the capacity of most of the population to purchase higher-priced patented drugs. Multinational pharmaceutical companies may try to increase the usage of patented products by employing tiered pricing. Self-medication is prevalent in Uganda, making the over-the-counter (OTC) drug market an attractive prospect. Many Ugandans lack access to health facilities owing to financial reasons, or because of sparse healthcare infrastructure in rural areas. The division between prescription and OTC drugs is blurred by the prevalence of roadside kiosks selling malaria drugs and antibiotics, highlighted by a rapid growth in the number of pharmacies in both rural and urban areas.

There are challenges when it comes to the local production of medicines (including poor infrastructure). Uganda is a part of Common Market for Eastern and Southern Africa (COMESA), an increasingly influential 19-member economic bloc covering a large swathe of Africa, including South Africa. Membership of COMESA should bolster the country’s attractiveness to companies looking to manufacture products in the country. For more information visit our info