Why this is important to Wisconsin businesses: Wisconsin has a strong base of health care companies that could respond to the growing need.
South Africa’s pharmaceutical market is growing rapidly, as the country’s middle class expands, the chronic disease incidence increases, and the government introduces initiatives to improve the health care structure and allow more access.
Pharmaceutical revenues for 2022 were about $4.8 billion, according to Research and Markets, up from $3.6 billion in 2021. South Africa is the largest pharmaceutical market in sub-Saharan Africa.
According to the U.S. International Trade Administration (ITA), South Africa has a dual health system: the public system that serves about 85% of residents and private health care that caters to the other 15% of the population who can afford health insurance. However, the country is moving toward a National Health Insurance system, which was approved by the Parliament in December 2023. It’s not certain yet how or when the new program will be funded and implemented, ITA said.
Of the $1.25 billion in medical devices projected to be sold in South Africa in 2023, $1.12 billion will be imports, according to ITA. The U.S. is one of the main providers of diagnostic imaging machines, consumables, orthopedics and prosthetics, and dental equipment.
If the National Health Insurance system is initiated, ITA expects a growing demand for generic prescription drugs. The government already has been promoting the use of generics as a way to improve access to more affordable medication for all residents.
The ITA report said a focus on HIV/AIDS drugs and tuberculosis treatment is likely to continue, but over the long term, there will be increasing attention on treatment for chronic diseases such as diabetes, cardiovascular disease, hypertension, and cancer.
Interest is also growing toward developing a strong pharmaceutical and biotech production hub in South Africa to be better prepared for the next pandemic, ITA said. As a result, partnerships are beginning to form between U.S. drug manufacturers and local producers. Also, in April 2023, the World Health Organization opened an mRNA vaccine technology hub in Cape Town.
All health care-related products must be registered with and evaluated by the South African Health Products Regulatory Authority.
Wisconsin companies in the pharmaceutical and medical device sector could find opportunities in South Africa’s growing demand for those products.
