The pharmaceutical market in Angola has been undergoing significant changes in recent years. The country, with its rich natural resources, faces challenges in the health and pharmaceutical sectors that require an integrated approach to development.
Current Situation
The pharmaceutical market in Angola is primarily characterized by a high growth rate, but it remains at an early stage of development. Angola is an underdeveloped agrarian state with a gross domestic product (GDP) of $2,333.72 per capita in 2023, and $7,247.48 when adjusted for purchasing power parity (PPP). The main problems within the pharmaceutical industry are:
- Lack of Local Production: Most medicines are imported, making the country dependent on international supplies. The largest share of imports comes from the U.S., with a projected supply of $49 million in 2024, which leads to high costs and potential supply disruptions. The medical technology market is also witnessing a surge in demand for advanced diagnostic imaging systems.
- Regulatory Barriers: The regulatory system for the pharmaceutical market requires improvement. Clear and effective policies are needed to protect consumers and improve the quality of medicines. For example, the establishment of a strict regulatory body to enforce high standards in drug production and distribution, along with the training and professional development of pharmacists, is needed to apply best practices and adhere to high-quality standards. Investment in modern manufacturing facilities and laboratories for quality control will also contribute to the industry’s growth.
- Public Health Status: According to 2022 data, the HIV incidence rate in Angola is 1.5%, but mortality has reached a record high of 11,000 cases per year over the last 8 years. Malaria deaths reached 13,608 cases or 6.48% of total mortality in the country in 2020. The government of Angola is prioritizing the fight against AIDS and malaria, which may drive increased investment in this segment of the pharmaceutical market. In 2024, the OTC drugs market in Angola is experiencing a surge in demand for traditional medicines, driven by their cultural relevance and perceived efficacy, with demand expected to remain high in the coming years.
The Incidence of HIV Infection by Year in Angola
The healthcare system in Angola faces major challenges, particularly a shortage of doctors and healthcare facilities. As of 2024, the number of doctors per 1,000 people is only 21, nurses and midwives 4, dentists 0.5, and pharmacists 0.7. This situation negatively impacts consumer demand for pharmaceutical products.
The incidence of HIV infection by year in Angola
Industry Outlook
Several factors are contributing to the potential further development of Angola’s pharmaceutical market:
- Population Growth and Improvement in Living Conditions: Angola’s population is increasing; as of November 2024, the population stands at 38 million. With the improving economic situation, the demand for health services and medicines is rising, creating new opportunities for pharmaceutical companies. In 2024, per capita income is expected to rise to $4.41, and the OTC pharmaceutical market in Angola is projected to generate $166.50 million in revenue, with a compound annual growth rate (CAGR) of 4.89% from 2024 to 2029. Analgesics are expected to hold the largest market share of $49 million in 2024.
- Government Investments in Pharmaceutical Manufacturing: The Angolan government is actively attracting investments to establish pharmaceutical manufacturing facilities within the country to reduce reliance on imports. For example, a group of private investors has submitted a proposal to the Angolan Private Investment and Export Promotion Agency (AIPEX) for a pharmaceutical production plant with an investment valued at $60 million, expected to begin operations in 2024. Despite this, the U.S. remains a significant player in the global pharmaceutical market, with projected revenues of $630.30 billion in 2024. While specific revenue figures for the Angolan market are not detailed, the U.S. pharmaceutical industry’s global influence is substantial. American companies have a notable presence in Angola’s pharmaceutical sector. During the COVID-19 pandemic, the U.S. government was the largest donor of COVID-19 vaccines to Angola, providing over 9.5 million doses through the COVAX initiative. This significant contribution underscores the prominent role of the U.S. in supporting Angola’s healthcare needs.
- Developing Partnerships with International Pharmaceutical Companies: Partnerships with international companies can facilitate technology transfer and boost local production. Medical device imports are projected to be the largest, with a volume of $163.50 million in 2024, and expected to grow at a CAGR of 5.56% through 2029, reaching $259.20 million by 2029. The U.S. will continue to lead this segment with $211.10 billion in revenue for 2024-2025.
- Increased Healthcare Funding: Initiatives by the government to increase the public health budget could play a key role in the development of the pharmaceutical market. According to Angola’s Health Minister Silvia Lutucuta, from April 2024, the country will be subject to new international regulations aimed at modernizing the Basic Law on the Health System. Lutucuta also stated that the Ministry of Health aims to train about 38,000 different professionals by 2027. She said, ‘The country endeavours to comply with all health rules and regulations and is ready to update them, if necessary, this is necessary to provide quality services to the public.’
International co-operation
Angola is actively seeking international co-operation in the field of pharmaceuticals. The country has signed various agreements with international organizations and private investors to establish joint ventures aimed at producing medicines and providing health services. For example, in August 2023, the Republic of Cuba and Angola signed a memorandum of understanding between Cuba’s Centre for the State Control of Medicines, Medical Equipment and Devices (CECMED) and Angola’s Agency for the Regulation of Medicines and Health Technologies (ARMED).
In addition, partnerships with international charitable organizations and pharmaceutical companies are helping to improve access to life-saving medicines, especially in remote regions.
The main actors in international co-operation include:
1. World Health Organization (WHO) – helps to shape national pharmaceutical policy as well as access to essential medicines. As part of the fight against infectious diseases such as HIV, AIDS, malaria, tuberculosis, WHO actively promotes, develops and implements effective pharmaceutical solutions, organizing access to antiretroviral drugs and medicines against tuberculosis. As part of increasing access to medicines, WHO evaluates medicines and organizes their supply, reducing the proportion of unauthorized sales in the country.
2. The Global Fund to Fight AIDS, Tuberculosis and Malaria – finances programmes aimed at combating these diseases, including procurement of essential medicines. The Global Fund trains and informs the public about the importance of HIV testing, conducts a program to prevent mother-to-child transmission of HIV, providing pregnant women with the necessary medicines and treatment. Conducts educational programs to raise awareness about HIV and its prevention among young people and women. Implements programs aimed at combating the stigma associated with AIDS and HIV and protects the rights of people suffering from these ailments by providing medical services and psychological support.
3. Pharmaceutical companies – Angola co-operates with international pharmaceutical companies that supply drugs and medical devices, such as companies from Brazil, India and other countries. Russia exports yellow fever vaccines to African countries including Angola. The volume of exports from Russia for the period from 2021 to 2023 decreased from $2.67 billion to $0.99 billion.
4 The importers of pharmaceutical products in Angola are such multinational companies as: eWorldTrade, NovartisAG, Pfizer, Sanofi, Johnson&Johnson, Merck&Co., Inc, AstraZeneca, GlaxoSmithKline, AbbVie, BayerAG. These companies import a wide range of pharmaceutical products into the country and are trusted by consumers. The market size will be $372.60 million by 2029.
5. Non-Governmental Organisations (NGOs) – Some NGOs are working in the country providing health services and supporting pharmaceutical programs. For example: the African Medical and Research Foundation (AMREF) in Angola focuses on training local specialists and provides access to medical services and medicines. The international organization Medicins Sans Frontieres (Doctors Without Borders) works in Angola, providing medical assistance in crisis situations, including vaccination programs, malaria treatment and access to essential medicines. Plan international is an NGO working with a focus on the health of mothers and children. Provides obstetric care, as well as trains medical workers in remote regions of Angola.
6. Angola is also actively developing its own production of medicines and is working to improve access to quality medicines for the population. This includes working with other African countries through the African Union programme to develop the pharmaceutical industry on the continent. The Angolan Government has launched programs to support local drug production, while providing manufacturers with tax incentives and financing, which contributes to the growth of the number of pharmaceutical companies.
Malaria treatment in Angola
Despite positive developments, Angola’s pharmaceutical market is also experiencing negative effects in the form of scandals:
In 2023, Angola was hit by a scandal involving corruption in the tendering process for the procurement of medicines for public institutions. This caused public outrage and raised questions about transparency in the medicine distribution system. Investigations revealed that companies manipulated tenders by forging documents and abusing their official positions to secure contracts worth hundreds of thousands of dollars. This inefficiency led to wasted funds and shortages of life-saving medicines in hospitals and clinics. In response, the Angolan government arrested several high-ranking officials. Discussions on reforming the procurement system and increasing budget transparency intensified, with representatives of the National Directorate for Prevention and Combating Corruption stating: “Our commitment is to ensure transparency in the pharmaceutical sector. We are actively investigating the current allegations and will act in accordance with the law.”
However, corruption in Angola’s pharmaceutical sector is not limited to local officials. International pharmaceutical companies have also played a significant role in perpetuating these issues by offering bribes to gain access to the market. For example, in 2012, a scandal surfaced involving an international pharmaceutical company, FarmaGlobal, during a government tender for vaccine procurement for the national immunization program. It was revealed that FarmaGlobal had bribed Ministry of Health officials to secure the contract. As a result, vaccines were purchased at inflated prices and were of substandard quality, leading to disease outbreaks and undermining public health efforts.
Similarly, in 2015, a mass inspection of pharmacies across the country uncovered widespread distribution of counterfeit medicines. Investigations revealed that MedTeck, another international supplier, had been providing unsorted and low-quality medicines. These medicines not only failed to treat illnesses effectively but also caused severe side effects. Officials responsible for ensuring the quality of imported medicines were found to have accepted bribes from MedTeck to overlook these issues. This scandal further eroded public trust in the healthcare system and exacerbated the health crisis in Angola.
These incidents highlight a systemic problem where corruption is deeply entrenched in both local governance and international business practices. Angola’s history of authoritarian governance, shaped by decades of civil war and a Soviet-influenced command economy, has created an environment conducive to corruption. According to Transparency International’s Corruption Perceptions Index, Angola ranks among the most corrupt countries, scoring 33 out of 100 (“Highly Corrupt”). Such corruption severely undermines the health of the population, delaying the registration of new medicines and increasing the prevalence of substandard or counterfeit drugs.
The challenges surrounding the availability and quality of essential medicines are a pressing concern. Physicians often face shortages of critical treatments, further deteriorating healthcare quality. Addressing these issues requires not only reforms in local governance but also increased scrutiny and accountability for international pharmaceutical companies operating in Angola. Forums such as the Global Anti-Corruption Forum and reports by organizations like Human Rights Watch emphasize the need for stricter regulations and transparency in both procurement and distribution processes.
To address these threats, the Angolan government and international organizations have taken a number of measures:
1. Tighter controls: Strengthening controls on the import and sale of pharmaceutical products; creating stricter regulatory standards to ensure the quality of medicines. The government has initiated anti-corruption agencies that work to investigate corruption in this area. Independent inspections and laboratory testing of medicines before they are placed on the market to avoid counterfeiting.
2 Education and awareness: conducting educational programmes for health professionals and the public on the risks associated with counterfeit and low-quality medicines. For example, conducting training programmes for employees of pharmaceutical companies to prevent corruption.
3. Cooperation with international organisations: Angola cooperates with organisations such as the World Health Organisation (WHO) and Transparency International, which enables the exchange of experiences and the implementation of international standards on corruption.
These measures are aimed at improving the situation in the pharmaceutical market and protecting the health of the population. However, as in any other country, fully addressing these issues takes time, effort and international co-operation. Despite the government’s efforts to improve the range of health services available, a large part of the population remains without access to the necessary care. There is a shortage of labour and basic equipment in hospitals, and quality health services are only available to a few.
Overall life expectancy in Angola is 61 years, women 64 years and men 59 years as for 2024. Diseases such as cholera, tuberculosis and measles are prevalent in overcrowded cities and refugee camps. Angola also has the highest death rate from hunger in Africa and the world. One in three children does not survive to the age of five.
Angola stands out among countries with an ever-increasing maternal mortality rate. Many health problems are related to the effects of military conflicts – mines have caused many to lose limbs and warfare has led to cases of mental illness. Due to the lack of basic medical care, the population turns to folk herbalists, many of whom have an in-depth knowledge of the medicinal properties of plants. And yet the death from the use of folk medicine in Angola has become a sad reminder of the limits of human faith in tradition. In one of the stories, an elderly woman suffering from a chronic illness turned to a local healer. Instead of going to the doctor, she chose a mix of herbs and roots, which, in her opinion, were supposed to heal her ailment. Unfortunately, the lack of scientific knowledge about the interaction of plants and the state of her health led to a deterioration of her condition and, ultimately, to death.
In another case, a young man who had lost hope in modern medicine decided to treat his infection with a ritual that included the use of an unknown decoction. His family was left in complete disbelief when the illness only worsened, and the time to seek medical help was lost. These stories, like many others in the country, highlight people’s vulnerability to disease and at the same time their desire to find relief, often trusting traditions. And yet the death from the use of folk medicine in Angola has become a sad reminder of the limits of human faith in tradition. In one of the stories, an elderly woman suffering from a chronic illness turned to a local healer. Instead of going to the doctor, she chose a mix of herbs and roots, which, in her opinion, were supposed to heal her ailment. This approach is due to trust in folk remedies, which have been passed down from generation to generation, are more accessible and less costly. Due to high levels of corruption, not all people trust pharmaceutical companies and therefore fear the side effects of medicines. In some regions of the country, the use of traditional remedies is associated with higher social status or authority among elders and healers. Altogether, this contributes to the overwhelming number of people choosing traditional medicine over pharmaceutical remedies.
Conclusion
The pharmaceutical market in Angola has significant potential for growth, but comprehensive reforms, improvements in health services, and effective international cooperation are essential to ensure its successful development. Businesses looking to enter the Angolan pharmaceutical market should consider seeking expertise from providers specializing in local due diligence and risk assessment to navigate the complex regulatory and operational landscape effectively.
Special thanks to the team at Assettracing.com for their valuable input in research capacities, advice, and support with resources in preparing this research.
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