Egypt’s pharmaceutical sector plays a pivotal role in ensuring the nation’s healthcare needs are met, with 3.6 billion drug packages produced annually, valued at LE191 billion. This impressive production capacity translates to an average of 36 drug packages per person per month, a notable figure considering Egypt’s large population.
The information was revealed by Ali Al-Ghamrawi, Head of the Egyptian Drug Authority, during a recent public hearing by the Health Affairs Committee in the House of Representatives. The session, which focused on the future of Egypt’s pharmaceutical industry, examined prospects, challenges, and sustainability, with a particular emphasis on developing strategies to address ongoing drug shortages.
Strengthening Drug Availability Amidst Supply Chain Hurdles
Al-Ghamrawi outlined a range of initiatives aimed at ensuring a steady supply of essential medications. Over the past three months alone, the Egyptian Drug Authority has distributed 161 million drug packages, including:
- 9 million packages of diabetes medications
- 13 million packages of blood pressure drugs
- 34 million packages of antibiotics
- 5.5 million packages of electrolyte effervescent tablets
Despite these efforts, Egypt’s pharmaceutical industry has faced significant challenges, particularly in securing the necessary foreign currency for importing raw materials. Al-Ghamrawi explained that while domestic manufacturing capabilities are strong, pricing difficulties arise from the fluctuating value of the Egyptian pound against foreign currencies, especially the US dollar. The country’s inflation rate (33% last year) and exchange rate dynamics have compounded the issue, making it more difficult to maintain stable drug prices.
Challenges in Drug Pricing and Foreign Currency Shortages
A major obstacle to maintaining steady production and pricing is Egypt’s reliance on imported raw materials, which make up 40% of the cost of drugs. The availability of these raw materials is critical for sustaining production, but the country’s foreign currency shortage has hindered the timely procurement of these essential supplies. Al-Ghamrawi highlighted that Egypt requires USD 120 million per month to maintain drug production, with USD 80 million needed for raw materials and USD 40 million for fully imported drugs.
Unfortunately, as of July 2024, Egypt only secured USD 40 million, with an additional USD 30 million in August, leaving the country with just a one-month supply of strategic reserves after drawing down from a seven-month buffer. This shortage has raised concerns about the future sustainability of the drug supply, though Al-Ghamrawi assured that 90-95% of the drugs are still available in the market.
Egypt’s Leading Role in Drug Manufacturing
Despite these challenges, Egypt remains a leader in pharmaceutical production in both the Arab world and Africa. The country is home to 172 pharmaceutical factories, producing a wide array of medical products, including medicines, medical devices, preparations, and biological products. Al-Ghamrawi emphasized that Egyptian drugs are gaining trust comparable to products from advanced nations, with local production often seen as more affordable without compromising on quality.
The country’s pharmaceutical sector is also equipped with 12 internationally accredited facilities and has made significant strides in modernizing and expanding production lines. However, Al-Ghamrawi noted that 19 factories are temporarily closed, mostly for modernization efforts to meet evolving industry standards.
Ensuring Stability and Accessibility
Al-Ghamrawi emphasized the importance of timely price adjustments to maintain drug availability and competitiveness. Egyptian drugs, he pointed out, remain among the most affordable globally, a key advantage in meeting the healthcare needs of Egypt’s population. The government has also worked to ensure widespread distribution, with medications reaching 28,000 pharmacies across the country, ensuring accessibility even in remote areas.
The Egyptian Drug Authority has also made strides in enhancing regulatory oversight, increasing the number of inspectors from 170 to over 1,000, though Al-Ghamrawi noted the need for legislative support to secure more permanent staffing solutions.
A Comprehensive Approach to Healthcare Reform
The Egyptian government’s commitment to supporting its pharmaceutical industry is vital for strengthening the healthcare system and ensuring that citizens have access to affordable, high-quality medications. Al-Ghamrawi’s comprehensive strategy involves not only securing drug availability but also tackling the financial and regulatory hurdles that threaten the sustainability of the sector.
As Egypt’s pharmaceutical industry continues to grow, the country aims to address current challenges, such as currency shortages and inflation, while maintaining its reputation as a leader in drug manufacturing and distribution across Africa and the Arab world.
