Relaunching the pharmaceutical industry in Senegal: an imperative for health sovereignty (by Fonome Dieng)
The Covid-19 pandemic has had a profound impact on health systems across the world. In Africa in particular, it has highlighted the fragility of our health structures and the limits of an almost exclusive dependence on imports of medical and pharmaceutical products. The supply disruptions observed during the crisis were a forceful reminder that health sovereignty is no longer just a political ambition, but a strategic necessity.
In many African countries, this awareness has translated into a renewed desire to develop local pharmaceutical industries capable of meeting, at least partially, national and regional needs. Senegal is fully part of this dynamic. From the Emerging Senegal Plan (PSE), launched under the government of President Macky Sall, to the Senegal 2050 National Transformation Agenda supported by the current authorities, several initiatives have been undertaken to promote the industrialization of the pharmaceutical sector and strengthen the country’s health autonomy.
However, if there is now consensus on the need to ensure greater health sovereignty, the concrete implementation of this ambition still faces several structural challenges.
A major institutional coordination challenge
One of the main obstacles to the revival of the national pharmaceutical industry lies in the difficulties of coordination between the different ministerial departments concerned. The Ministry of Health and Public Hygiene, the Ministry of Industry and Commerce, the Ministry of the Economy, the Ministry of Finance, as well as other public institutions, each intervene in the definition and execution of policies linked to the local production of health products.
In theory, this plurality of actors should promote a global and coherent approach. In practice, it often leads to overlapping skills, a lack of synchronization of initiatives and sometimes a duplication of efforts. It is not uncommon for certain projects or studies to be relaunched when similar work has already been carried out by other structures.
This coordination deficit can reduce the effectiveness of public policies and slow down the establishment of a solid industrial ecosystem. In a sector as strategic as that of medicine, where investments are heavy and return on investment times long, institutional clarity and the coherence of public policies constitute determining factors.
The pharmaceutical industry: an economic logic above all
The revival of the pharmaceutical industry, as we have often argued, is above all an economic and industrial logic. This statement sometimes provokes emotional reactions, particularly because health is rightly perceived as a fundamental public good.
However, it is essential to remember that a viable pharmaceutical industry must operate according to sound economic principles. Companies that invest in the production of medicines must be able to ensure their profitability in order to cover their production costs, their personnel costs, their technological investments and their regulatory obligations.
In other words, health sovereignty cannot be built sustainably without a viable economic model for industrial players.
In this context, several structuring measures can contribute to strengthening the attractiveness of the Senegalese pharmaceutical sector.
Significant progress but still insufficient
Among the flagship measures already implemented is the principle of Correlation, which consists of giving priority to local producers in the awarding of public orders. Such a measure can constitute an essential lever to stimulate industrial investment by guaranteeing national producers minimal access to the market.
Furthermore, the achievement of maturity level 3 of the World Health Organization (WHO) by the Senegalese pharmaceutical regulatory system represents another major asset. This level of maturity demonstrates the robustness of the medicines regulation system and strengthens the country’s credibility with international partners, investors and manufacturers.
A solid regulatory system is indeed essential to guarantee the quality, safety and effectiveness of locally produced medicines, while facilitating their access to regional and international markets.
The central question of the market
Despite these advances, the fundamental question that every industrialist asks himself before investing remains the same: is there a viable market?
For an industrial investment in pharmaceutical production to be economically relevant, several conditions must be met.
First, manufacturers must have the guarantee of the existence of a sufficiently large and stable market to absorb their production. This requires in particular a coherent and predictable public purchasing policy.
Then, the prices charged must allow producers to cover their costs while maintaining a reasonable margin. Locally produced medicines must certainly remain accessible to populations, but they cannot be sustainably offered at prices incompatible with the economic realities of industrial production.
Finally, payment terms are a determining factor. In many African countries, companies supplying the public market are faced with very long payment deadlines, sometimes several months or even longer. Such a situation can weaken companies’ cash flow and discourage investments.
Sustainable and predictable payment terms are therefore essential to establish a climate of trust between public authorities and industrial players.
Building a true pharmaceutical ecosystem
The revival of the pharmaceutical industry in Senegal cannot be limited to a few isolated measures. It requires the establishment of a true industrial ecosystem, based on a clear strategic vision, effective coordination between public institutions and a solid partnership with the private sector.
This includes developing industrial infrastructure, strengthening technical and scientific capacities, supporting research and innovation, and promoting the integration of Senegal into regional and international pharmaceutical value chains.
From this perspective, health sovereignty should not be understood as autarky, but as the country’s capacity to secure a strategic part of its medicine supply while actively participating in global industrial dynamics.
If health sovereignty is today widely recognized as a strategic priority, it cannot be achieved without operational measures capable of creating an environment favorable to industrial investment. As such, several actions deserve to be implemented as a priority.
Strengthen coordination between stakeholders.
The development of the pharmaceutical industry involves numerous public actors: health, industry, commerce, economy and finance, pharmaceutical regulation, investment agencies, purchasing centers, among others. In order to avoid the current fragmentation, the creation of a one-stop shop dedicated to the pharmaceutical industry could constitute a major step forward. This system would have the mission of welcoming industrialists, both national and international, and supporting them throughout their investment journey. In a hand holding logic, it would facilitate orientation between the different administrations, speed up procedures and ensure better consistency of decisions.
Better promote existing incentive schemes.
Senegal already has several mechanisms to support industrial investment, but these often remain insufficiently known or difficult to access. A proactive strategy to promote these measures would be necessary. It could, for example, include support in access to industrial land, particularly for obtaining land in specialized industrial zones, as well as the regular organization of meetings between investors, public authorities and regulatory institutions in order to facilitate dialogue and remove obstacles.
Simplify and secure the administrative and regulatory environment.
The pharmaceutical industry is one of the most regulated sectors in the world, which is legitimate in view of public health issues. However, administrative procedures must be clear, transparent and predictable. Simplifying procedures, reducing the time it takes to obtain regulatory authorizations and better coordination between competent authorities would help to strengthen investor confidence.
Guarantee a stable market through public procurement.
For manufacturers, market visibility is a determining factor. A stable, transparent and predictable public procurement system is therefore essential. This also requires reflection on the pricing policy in order to reconcile two imperatives: the accessibility of medicines for populations and the economic viability of local production. In the same spirit, the issue of payment deadlines, particularly in public procurement, must be treated seriously in order to avoid weakening companies’ cash flow.
Develop public-private partnerships to support innovation and investment.
Reviving the pharmaceutical industry will require significant investment as well as access to advanced technological skills. In this context, the development of public-private partnerships (PPP) can constitute a strategic lever. These partnerships can facilitate access to financing, promote technology transfer, encourage research and innovation, and accelerate the increase in capacity of local industrial players. By bringing together public institutions, pharmaceutical companies, research centers and investors, these mechanisms would make it possible to structure a more dynamic and competitive pharmaceutical ecosystem, capable of meeting national health needs.
Finally, put in place targeted tax incentive measures.
Appropriate tax measures – temporary exemptions, reductions on certain inputs, customs facilities for the import of industrial equipment – could help to improve the attractiveness of the sector and encourage the establishment of pharmaceutical production units.
Beyond the speeches, the revival of the Senegalese pharmaceutical industry will therefore require a pragmatic approach, based on better institutional coordination, clear economic incentives and a secure investment environment. It is at this price that Senegal will be able to transform the ambition of health sovereignty into a sustainable industrial reality.
Senegal has many assets to move in this direction: institutional stability, recognized scientific skills and a strategic position in West Africa.
But transforming these assets into an industrial reality will require clear political choices and an assumed economic vision.
Health sovereignty cannot be decreed in speeches.
It is built patiently, through coherent policies, strategic investments and an intelligent partnership between the State and the private sector.
It is at this price that Senegal will be able to develop a strong pharmaceutical industry, capable of contributing to national health security while participating in the economic development of the country.
It is precisely this project that we must accelerate today.
Fonome Dieng
Consultant – Pharmaceutical Industry Expert
[email protected]
