The crisis goes beyond environmental degradation. Local communities are increasingly vulnerable to violence and exploitation by criminal smuggling networks. These groups, driven by greed and operating with impunity, show no regard for the lives or livelihoods of the people they exploit. The unchecked power of these networks reflects the growing failure of governments and international systems to adequately address the illegal timber trade, leaving communities to fend for themselves against well-organized and well-funded criminal syndicates.

At the heart of this crisis is rosewood (Dalbergia spp.), a family of tropical tree species coveted for its use in high-end furniture, musical instruments, and decorative works. While rosewood grows throughout the Guinea Forest region, spanning 11 countries, the epicenter of smuggling operations lies in Gambia and Senegal. These countries are key transit points for an illicit trade that undermines local economies and destroys natural resources at an alarming rate.

Despite international awareness and attempts to curb this environmental crime, including investigations and strategies to combat the illegal trade, progress remains limited. Overharvesting continues unchecked, and the rapid disappearance of rosewood highlights the inefficacy of current interventions. The global demand for this valuable timber, particularly from Asia, Europe, and the United States, fuels the cycle of destruction, making the region a battleground for environmental exploitation.

This ongoing crisis demands critical attention. Addressing it requires more than surface-level strategies or temporary solutions; it necessitates structural change, greater accountability from global markets, and a commitment to safeguarding the ecosystems and communities most affected. Until these measures are implemented, West Africa will remain on the frontline of a crisis that underscores the true cost of humanity’s unsustainable appetite for luxury.

Current situation

Despite the international community working to protect the environment and forest resources, rosewood smuggling in The Gambia and Senegal continues to flourish. This is fuelled by the high demand for rosewood from developed countries in Europe, Asia and the USA, which produce high quality furniture in antique historical styles, as well as a premium type of parquet flooring, which requires large quantities of raw materials. Today, rosewood smuggling is a serious environmental problem for both The Gambia and Senegal. The two states are at the crossroads of smuggling routes across the North Atlantic Ocean.

Senegal and Gambia

In addition, illegal logging poses a danger to the life and health of the local population, who are forced to work for a couple of dollars a day due to poverty and the need to feed their families. Often the transported logs weigh up to 400kg and they do not float on water. Every year, at least 3 people in a crew are reported to be crushed to death by a log. In Gambia, it is estimated that several thousand tons of one-off timber are felled each year, with much of the timber being shipped to Asian countries where demand remains high. For example, according to BBC Africa Eye research, China imported more than 300,000 tons of timber from The Gambia between 2017-2020 at a value of more than $100 million and this despite the Gambia announcing a decade ago that its reserves were catastrophically thinning.

In 2022, timber exports were banned and all licenses revoked, ports were banned from loading logs onto any ships, but despite the bans the illegal trade continues. According to an Environmental Investigation Agency (EIA) report analyzing polysander smuggling, the region has seen unprecedented instances of ban violations and environmental crimes. The export bans are being violated primarily by high-ranking officials, notably Environment Minister Lamine Dibba, through the established parastatal Jagne Narr Procurement & Agency Services (JagneNarr), through which the illegal activities continue. In addition to power circles, Africa’s criminal circles also control the highly profitable activities. The logistics of the supply of smuggled polysander are largely controlled by the armed rebel group, the Movimento de Forces Démocratiques de Casamance (MFDS). The timber trade is their main source of income.

The rate of global tree cover loss has approximately doubled since 2001, to an annual loss approaching an area the size of Italy.

Global tree cover loss

In 2022, exports from Gambia totaled 17.4 million, making it the 77th largest exporter of sawn timber in the world. In the same year, the main destinations for timber exports from Gambia are: China ($12.4 million), Chinese Taipei ($4.93 million), Germany ($99), Ireland ($88), and the Netherlands ($88). However, according to the data cited in the EIA report exports are significantly understated with The Gambia reporting $444 million less in export data than importers between 2010 and 2018.

To combat smuggling, the Gambian government is working with international organizations such as Interpol and the World Wildlife Fund (WWF), but the effectiveness of this cooperation is limited by corruption in the authorities, a lack of resources and a lack of sustainable community development programs.

The situation in Senegal mirrors that of The Gambia concerning illegal logging. An Environmental Investigation Agency (EIA) report estimates that approximately 1.6 million trees were illegally felled in Senegal and smuggled into The Gambia between June 2012 and April 2020. Senegal’s President Macky Sall has described the illegal felling of rosewood as a catastrophe and has pledged to increase penalties for such activities, stating: “Illegal logging is destroying our forests, destroying biodiversity and jeopardising the living conditions of our population.” The Environmental Investigation Agency proved, that valuable trees are taken from the southern Casamance region of Senegal and smuggled through the port of Gambia for export. Senegal has repeatedly conducted raids to stop illegal exports and, as in Gambia, recent years have shown that smugglers are able to adapt quickly to changing conditions. Corrupt officials often turn a blind eye to illegal operations, exacerbating problems in the industry.

Rosewood is massively exploited and exported

Local activists in Senegal have been vocal about the devastating effects of illegal rosewood logging on the environment and local communities. One activist lamented, “Every tree cut down is not only a loss of our nature, but also a loss of cultural heritage. The rosewood is part of our world, and its disappearance is harmful to the entire ecosystem.” Eyewitnesses have also highlighted the socioeconomic impact, stating, “People who depend on forest resources for survival are left destitute while our forests are cut down for the profit of a few. We must protect our resources to secure our children’s future.” These sentiments reflect the broader crisis in regions like Casamance, where illegal logging has led to significant environmental degradation and economic hardship for local populations.

‘Chinese interest’

Illegal timber trafficking in West Africa, particularly in Senegal and Mali, is driven by both local and international actors, with devastating consequences for the environment, local communities, and regional stability. The terrorist group JNIM, affiliated with Al-Qaeda, has established a protection racket for illegal loggers, enabling timber smuggling despite Senegal’s export ban. Their operations are reportedly linked to Chinese demand, with rosewood being exported to satisfy the luxury furniture market. JNIM operatives have been found with weapons manufactured by NORINCO, a Chinese state-owned defense contractor, which recently expanded its presence in Senegal, raising concerns about China’s indirect role in destabilizing the region. Illegal logging destroys habitats, reduces biodiversity, and accelerates soil degradation, undermining the livelihoods of local populations who rely on forests for sustenance and income. This illicit trade exacerbates crime, fosters corruption, and erodes trust in government institutions, as local communities face increased poverty and insecurity. Addressing this crisis requires international cooperation to curb demand for illegal timber, hold complicit entities accountable, and strengthen governance in affected regions.

Combating Illicit Timber Trade by International Organizations

The illegal timber trade in Senegal and Gambia has attracted global attention due to its devastating environmental and socio-economic impacts. To address this complex problem, various international organizations have implemented strategies and collaborated with local governments to curb smuggling and restore ecosystems. Below are notable initiatives and examples of their application in Senegal and Gambia.

1. Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

CITES has played a pivotal role in regulating the trade of endangered species, including rosewood. Both Senegal and Gambia participate in CITES conferences, which aim to establish measures against illegal logging. In 2018, CITES organized training programs for local officials and communities, emphasizing the importance of protecting rosewood and implementing export controls. However, enforcement remains a challenge as smuggling persists due to high demand and corruption​.

2. Reforestation and Community Engagement: Wood for Life Campaign

Reforestation campaigns have been integral in combating deforestation. In Senegal, former Environment Minister Haidar El Ali launched a large-scale project to restore over 10,000 hectares of deforested land. This effort not only replenished critical forest ecosystems but also involved local communities in planting rare and endangered tree species. By integrating reforestation with community education, this campaign has been instrumental in promoting sustainable forestry practices.

3. TRAFFIC Monitoring and Law Enforcement

TRAFFIC, an organization monitoring wildlife and timber trade, has worked to analyze and disrupt smuggling routes between Senegal and Gambia. In 2022, Gambian authorities arrested several suspects linked to organized crime groups smuggling rosewood. These arrests followed intelligence-sharing efforts that traced the timber from Senegal to export hubs in Gambia. Such operations highlight the importance of collaboration between countries and organizations in tackling cross-border crimes​.

4. Global Forest Watch Technology and Mapping

Global Forest Watch provides real-time data and mapping tools to monitor forest loss and detect illegal logging activities. In Senegal, local authorities used these tools in 2021 to identify smuggling hotspots, leading to the interception of rosewood shipments and the arrest of smugglers. This technology-driven approach has proven critical in regions where limited resources make traditional enforcement difficult​.

5. World Wildlife Fund (WWF) and UNEP Initiatives

The WWF and the United Nations Environment Programme (UNEP) have collaborated with Senegalese and Gambian governments to establish protected areas and reserves. These measures help conserve vital ecosystems and reduce illegal logging. For example, reserves created under this initiative have shown improvements in biodiversity and forest regeneration. Additionally, these organizations work with local governments to strengthen forest protection laws and enforce CITES regulations. For instance, obtaining permits for rosewood trade has been made mandatory under CITES, with WWF and UNEP ensuring strict compliance.

Conclusion

The illegal logging and smuggling of rosewood in Senegal and Gambia remain critical issues that continue to devastate the region’s ecosystems, economies, and communities. Despite efforts by international organizations, local governments, and environmental groups, the trade in this valuable timber persists due to high demand, weak enforcement, and corruption. Initiatives by organizations like CITES, WWF, UNEP, TRAFFIC, and Global Forest Watch provide essential tools to monitor, control, and prevent illegal logging, but significant challenges remain in implementation.

The efforts to curb illegal timber trade must be multifaceted, combining strict legal frameworks, enhanced international cooperation, and community-driven conservation programs. Reforestation projects, strengthened law enforcement, and technological solutions are crucial in reducing illegal activities and fostering sustainable forestry practices. However, true success in tackling this issue requires a shift in the global approach to environmental protection—one that prioritizes long-term ecological sustainability over short-term economic gain.

For countries like Senegal and Gambia, the protection of their forests is not just an environmental necessity, but a social and economic imperative. By addressing the root causes of illegal logging, improving governance, and enforcing international regulations, the international community can help preserve these vital ecosystems and improve the livelihoods of the communities that depend on them. Ultimately, the fate of West Africa’s forests—and the people who rely on them—depends on the collective action of governments, organizations, and individuals committed to creating a sustainable future.

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Political and economic aspect

Corruption in the mineral trade in Turkmenistan has deep roots in the political system of the country. In this country, where power is concentrated in the hands of the president and his entourage, the mineral trade is often used to legalize shadow funds. For example, in 2020, several cases were uncovered in which high-ranking officials manipulated state contracts for the supply of diamonds, allowing them to actively embezzle money. As of 2023, Turkmenistan scores 18 out of 100 on Transparency International’s Corruption Perceptions Index. This situation has a negative impact on economic growth and infrastructure development in the country. According to the data, the level of corruption in the country in 2023 amounted to 6.6%.

Political aspects of international relations between major developed countries also affect the mineral (and, in particular, diamond) industry of less developed Asian and African countries. This is expressed in embargoes on imports of stones to Western countries due to lobbying of the West for its political interests in military conflicts.

From an economic point of view, corruption in the diamond trade results in significant losses for the country’s budget. corrupt practices can lead to unfair competition, arbitrary regulations, demands for bribes and lack of transparency in business operations.

Scandals and statistics

According to the data, 77 million tons of minerals were mined in Turkmenistan in 2022. This is down from 78 million tons in December 2021.

Mineral extraction in Turkmenistan from 2009 to 2022

There are environmental problems in the mining sector of Turkmenistan, like technogenic desertification. It is connected with industrial development of the territory, including exploration and extraction of hydrocarbon raw materials. Large desertification centres are located around industrial cities (Turkmenbashi, Khazar, Balkanabat) and large oil and gas fields (Goturdepe, Barsagelmez).

The nominal value of the precious metals derivatives market in Turkmenistan is projected to reach USD 508.2 million in 2024.

The compound annual growth rate (CAGR 2024-2029) is expected to be 5.69%, resulting in a projected total value of USD 670.10 million by 2029.

In 2024, the average contract price in the precious metals derivatives market is USD 0.02.hazar, Ekerem, etc.).

According to the data, the loss of revenue from the illicit jewellery trade could have a negative impact on the country’s economy, where the mining and processing sector contributes about 40,58% to GDP[5]. It also raises concerns about law enforcement and anti-corruption, which undermines the confidence of both local citizens and international investors.

Kimberley process

The Kimberley Process, initially designed to combat illegal diamond mining and prevent its use in funding conflicts, often serves as a facade allowing corrupt states like Turkmenistan to manipulate the certification system. Despite Turkmenistan’s participation in the initiative, which ostensibly aims to regulate “grey” diamonds, the reality suggests that the Kimberley Process is being exploited to legitimize dubious operations. Turkmenistan’s involvement in the Kimberley Process appears to be more about evading international scrutiny than ensuring transparency. In a country plagued by systemic corruption and lacking independent oversight, diamond mining and exports remain opaque. Reports of large-scale smuggling, valued at tens of millions of dollars annually, undermine the goals of the Kimberley Process and fuel the shadow economy.

The Kimberley Process operates through a certification system that certifies that exported stones are not conflict. Participants in the process are required to ensure that diamonds that meet Kimberley standards are sold. Despite the mission to make the sale of diamonds transparent, the effectiveness of the process has been questioned by organisations such as Global Witness, which withdrew from the scheme on 5 December 2011, arguing that it was not meeting its objectives and did not provide assurance that diamonds entering the markets were not conflict diamonds. The inefficiency of the process is reflected in the fact that many countries can manipulate the certification system or fail to enforce it. This allows the smuggling trade to continue. In addition, diamond mining in some regions leads to environmental disasters and violations of the rights of local populations, which calls into question the effectiveness of the Kimberley Process.

Some human rights defenders point out that the Kimberley Process has failed to address human rights issues related to diamond mining. For example, the rights of local people in mining areas are often affected, including migration, illegal labour exploitation and violence. These problems have led human rights organisations to call for certification reforms to improve certification and yet, despite its original purpose, the Kimberley Process has not yet achieved full transparency and rigour and is often perceived as an ineffective mechanism for addressing the world’s conflict diamonds.

The Kimberley Process Certification Scheme is chaired by UAE Sheikh Ahmed Bin Sulayem, Chairman of the Ports and Free Zone Corporation. Sheikh Ahmed bin Sulayem has extensive business ties with representatives of business communities in many European and Asian countries, including the owner of Integral Petroleum Murat Seitnepesov, a businessman of Turkmen origin who has businesses in various global jurisdictionsthrough complex opaque schemes involving nominees, shell companies and relatives.

Liaising with businesses in Turkmenistan and business records

Business and politics are increasingly intertwined, creating a network of various partnerships between businessmen and powerful sheikhs representing the wealthy states of the Middle East. These relationships may take the form of joint ventures or simply cultural engagement and mutual assistance.

Murat Seitnepesov has close ties with Sheikh Ahmed Bin Sulayem, the chairman of the Kimberley Process, whom he credits with assisting in establishing the Dubai office of his company. This cooperation raises concerns about the potential misuse of the Kimberley Process certification system to facilitate the export of Turkmen gemstones with questionable origins under the guise of compliance with international standards.Turkmenistan, as a participant in the Kimberley Process, represented by large businesses such as Integral group related to trade and transportation of gemstones, noted the effective work of AhmedBin Sulayem as Chairman of this initiative. In particular, Murat Seitnepesov has not only business ties with Ahmed bin Sulayem, but also friendly ties, calling him his ‘friend’, thanks to his assistance in opening the Dubai office of his company, as well as the cooperation agreement with Ahmed bin Sulayem’s company.

Murat Seitnepesov is expanding his presence in the Middle East, Middle East and more likely Africa, pursuing an interest in precious metals trading and mining: by calling Ahmed Bin Sulayem his friend, Seitnepesov’s connection to the Kimberley Process goes beyond formal business ties – he has publicly described Sheikh Ahmed Bin Sulayem as a partner in facilitating his company’s operations. Given the documented corruption within Turkmenistan’s diamond trade and the inefficiencies of the Kimberley Process in ensuring transparency, these relationships create fertile ground for exploiting certification loopholes. The overlap between Integral Group’s interest in gemstones and the systemic corruption in Turkmenistan raises the possibility that the Kimberley Process may unintentionally enable the legitimization of illicit activities under its framework.

Murat Seitnepesov and Sheikh Ahmed bin Sulayem

Murat Seitnepesov is recognized as a key figure in numerous legal battles, often involving companies connected to the Integral group and associated individuals. To obscure his assets, Seitnepesov employs nominees, which include his family members (his wife and brother), individuals on Integral’s board, and other unrelated third parties. This network of nominees, acting on behalf of Seitnepesov across various nations, forms a shared framework where his direct involvement is limited. This arrangement of capital and asset holdings serves to reduce the likelihood of asset loss during legal confrontations. Nonetheless, this structural setup has a vulnerability due to the numerous links within the decision-making process. Nominees are obliged to act in the best interests of the actual owner, a factor that could be leveraged during negotiations. Furthermore, employing family members as nominees introduces another potential risk, as they might be susceptible to external influence.

In addition, Murat Seitnepesov’s company has systemic debts to the banking structure GPB International with a debt of $24.5 million. The company also has debts to Unicredit Bank in the amount of $25.4 million, such debts arose due to active prepayments on contracts of the Turkmen plant and to this day have not been repaid to the end.

In August 2015, Seitnepesov’s company sued Melars group and Dartex group over its obligations in the form of overdue delivery of gasoil to Melars and failure to return the full value of the deposit by dartex group. In addition, Melars alleged that Integral and Dartex were in fact connected through the managing director of Integral, Mr Seitnepesov. ‘Melars alleged that Dartex was in fact a shell company of Integral’s managing director, who, according to Melars, used Dartex to defraud Melars for the benefit of Integral (and himself).

Conclusion

As we reflect on the corruption inherent in Turkmenistan’s mineral trade and the challenges within the Kimberley Process, it is crucial to question the integrity of the key figures involved. Sheikh Ahmed Bin Sulayem, the Chairman of the Kimberley Process, is positioned at the forefront of an initiative that claims to combat illicit diamond trade and ensure transparency. However, his close business ties with figures such as Murat Seitnepesov, a businessman linked to Turkmenistan’s shadowy gemstone industry, prompt us to examine the stark contrast between his public statements and the reality of his associations.

What does it say about his commitment to integrity when he publicly claims to lead efforts for a transparent diamond trade, yet his personal and professional relationships intertwine with individuals connected to corruption and illicit business practices? Does Sheikh Sulayem’s extensive involvement with dubious business entities undermine the credibility of the Kimberley Process itself? Furthermore, how do the actions of Murat Seitnepesov, who uses opaque networks to obscure his financial dealings and engages in questionable business practices, align with the values he espouses in public?

The question must be asked: are these leaders truly dedicated to the values they promote, or do they merely use their positions to further their own financial interests? What does this say about the morality and ethical standards of those at the helm of global initiatives aimed at promoting transparency? As corruption continues to flourish in Turkmenistan and the broader region, it becomes clear that significant reforms are needed — not just in the mining industry but also in the leadership that claims to regulate it.

By scrutinizing the conduct of figures like Sheikh Ahmed Bin Sulayem and Murat Seitnepesov, we are compelled to reconsider the effectiveness of systems like the Kimberley Process in addressing the root causes of corruption. The disparity between their proclaimed values and demonstrated actions underscores the need for a more rigorous and accountable framework to combat corruption in the mineral trade. Only through genuine commitment to transparency, ethical practices, and real change can the cycle of corruption in the global trade of precious metals and gems be broken.

© 2024 United Action Foundation. All rights reserved. This publication may not be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the United Action Foundation, except in the case of brief quotations embodied in critical reviews and certain other non-commercial uses permitted by copyright law.

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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:

1. 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.
2. 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.
3. 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:

1. 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.
2. 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.
3. 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.
4. 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.

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The company highlights its reclamation efforts, water management, and recycling practices as measures to protect the environment, yet the effectiveness of these initiatives remains unclear. Though Fura emphasizes transparency with its chain of custody tracing, critics suggest that this approach may be more about branding than genuine accountability.

The broader gemstone mining industry, including companies like Fura, often faces scrutiny for potential environmental damage and inadequate protections for workers and local communities. These issues are frequently overlooked or underreported by regulatory bodies and the companies themselves, leaving it to the media to uncover concerns that the industry might prefer to keep out of sight.

                  Record-Breaking Ruby Discovery or Strategic Showmanship?

In July 2022, Fura Gems announced its discovery of a massive 101-carat ruby, the Estrela de Fura, mined in Mozambique. This high-profile reveal is intended to bolster the company’s reputation as a global gemstone leader. Fura presented the ruby in Dubai, emphasizing the UAE’s role as a gemstone trade hub, and promoting Mozambique as a premium source of rubies to rival Burma’s historic mines. This move supports Fura’s ambition to position rubies alongside diamonds as equally valuable and desirable on the international market.

                                                                       «Estrela de Fura» Ruby 101 carat

Yet, behind this display of success lie significant issues tied to gemstone mining in Mozambique and the broader African region. It’s estimated that Mozambique supplies around 50-70% of the world’s rubies, but the industry is mired in systemic challenges. Since Montepuez Ruby Mining Limitada acquired the rights to the deposits in 2011, the industry has attracted various influential groups, and with them, significant criminal activity. Local authorities and government bodies, who should be tackling these issues, often appear complicit in the very problems they are supposed to address. Allegations of bribery and exploitation are rampant, with police, customs officials, and other authorities reportedly benefiting from illegal mining and gemstone sales.

Foreign workers frequently operate without proper visas, while local miners are forced into desperate conditions, often needing to pay bribes just to access mining sites. Many are then compelled to sell their finds at below-market prices to traders. Attempts to legitimize the sector, such as the 2016 initiative to register “artisanal” miners, have largely failed; eight years later, the industry remains rife with illegal operations, and the protections for miners and communities appear minimal at best.

Steps forward: Genuine Sustainability or Marketing Strategy?

Fura Gems has announced plans to invest over 200 million USD in Colombia’s Kosuez emerald mine over the next five years, promoting its commitment to “sustainable development” and pursuing certification from the Responsible Jewellery Council (RJC) to align with environmental and social standards. Additionally, the company is collaborating with Switzerland’s Gubelin laboratory to incorporate blockchain technologies aimed at tracing gemstone origins.

However, while Fura portrays these moves as responsible and transparent, it raises questions about the depth and effectiveness of such initiatives in an industry often criticized for its environmental and social impacts. Certification can sometimes be more about optics than genuine accountability, especially when certification standards are inconsistently enforced. Despite the ambitious collaboration on gemstone traceability, blockchain and tracking technologies in this sector remain experimental and face ongoing challenges in ensuring full transparency.

Fura projects its strategy as a key force in boosting the colored stone market, aiming for a 6 billion USD global market within the next decade by scaling up production and increasing demand, particularly in India, one of the world’s largest gemstone markets. Yet, while Fura emphasizes its marketing and planned partnerships with other mining companies to drive growth, questions remain about the company’s ability to close the gap between supply and demand in a way that genuinely respects environmental and ethical concerns. Despite growing consumer demand for ethically sourced gemstones, Fura’s approach leans heavily on scaling operations, which could exacerbate environmental pressures and potentially sidestep meaningful improvements in working conditions and sourcing practices.

«Spoon of tar»

Fura Gems has invested 10 million USD in the Colombian Tunnel to restore gem mining in the region, but the local community is sharply dissatisfied with such changes. People have been searching for stones in tunnels for decades to feed their families. Fura promised to give people an alternative income, while closing the mines. Nevertheless, the company closed 4 of the 49 mines, while not setting a timetable for the closure of the rest, which poses risks to people’s lives. There have already been known cases of violence related to illegal mining and human losses. Moreover, emerald mining workers have been working in unsafe conditions for many years without basic safety equipment. Fura managers claimed to comply with all labor safety rules, but sources who remained incognito said that this was not the case. Workers are still forced to put themselves in danger in the workplace.

Recently, an armed gang seized the emerald mine, taking 50 workers hostage, which is a natural result of the emerald wars. Emeralds smuggled and sold on the black market are financed by many non-State armed groups. Global demand for emeralds is high and “hundreds of millions of dollars” continue to flow into criminal organizations in Colombia. This is a serious problem affecting the security and stability of the region. The emerald industry is still the preserve of the black market of gangsters, prospectors and dealers.

Such stories and problems can certainly cause reputational damage to a company. Despite the industry challenges, Fura Gems recently entered into a partnership with China Stone to deliver top-quality Mozambican rough rubies. As part of the cooperation, Fura Gems will have to provide evidence confirming the extraction of rubies in accordance with ethical standards. This cooperation might help achieve the company’s goals in meeting the demand for the supply of stones mined with ethical standards, which is an important milestone in the implementation of the company’s overall mission and strengthening the industry as a whole.

Fura Gems emphasizes a commitment to employee welfare, reliability, and transparency in an industry plagued by issues like illegal labor, mine closures, and crime—factors that have long contributed to environmental and social risks worldwide. However, these persistent issues, which the mining sector has yet to address at the root, suggest a certain disconnect between the company’s stated values and actual industry practices.

While Fura publicly commits to sustainable mining and promotes its gemstones as high-quality, premium products, the long-standing, unresolved challenges cast doubt on the depth of its commitment. This duality between “words and deeds” raises questions about the company’s potential for truly sustainable development, despite its declared intentions to address industry-wide risks and promote long-term growth.

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The initiative to modernize the country’s energy sector—aimed at improving energy efficiency, increasing the spread of renewable energy sources (RES), and diversifying the economy—is outlined in the government’s “Bahrain Economic Vision 2030” document. According to the outlined development trajectory, new projects for constructing solar power plants, modernizing power grids, and more are being launched. Consequently, demand for services from companies in Bahrain’s energy and construction sectors is rising, supported by the government’s program and the creation of new power plants. Notably, the Ministry of Electricity and Water (EWA) collaborates with foreign companies to implement these projects, indicating the market’s openness to international partnerships. However, a significant presence of Russian businesses in Bahrain has not been identified at this stage.

Bahrain’s electricity consumption market is substantial. In 2020, the GDP per capita (at nominal prices) was $50,863, with gross electricity consumption amounting to 21,617 kilowatt-hours (kWh), and per capita electricity consumption at 5,748 kWh. Currently, the share of electricity generated from renewable energy sources (RES) accounts for only 0.4% of the country’s total final energy consumption. Additionally, 100% of the population has access to electricity, with 99.9% receiving electricity from clean and sustainable sources.

Structure of the Country’s Energy Sector

Generation

Several power plants operate in Bahrain:

1. Al Ezzel Power Station – A natural gas power plant with a capacity of approximately 942 MW, located in Al Hidd, Muharraq.
2. Al-Dur Power and Water Station – A gas-fired power plant with a capacity of at least 2,726 MW, located in Al Dur, Southern Bahrain.
3. Al Hidd Power and Water Station – A gas-fired power plant in Al Hidd, Muharraq, with a capacity of at least 987 MW.
4. Riffa Power and Water Station – A power plant located in Riffa, Southern Bahrain, with a capacity of 700 MW. It is also known as Rifa’a and Al Riffa. The plant and all its blocks are owned by the Ministry of Electricity and Water.
5. Aluminium Bahrain (ALBA) Power Station – One of the largest power stations, with a capacity of 3,245 MW, located in Mazrowiah, Southern Bahrain.

Transmission and Distribution, System Operators in Bahrain

The Electricity and Water Authority (EWA) is responsible for the generation and distribution of electricity in the country. It is also the main buyer in the electricity market, setting tariffs and market operating rules. Additionally, several private companies are engaged in alternative energy and energy efficiency initiatives, such as Tarsheed Energy, Renewable Energy Electricity Solutions & Construction, and Sunergy. However, most of Bahrain’s electricity continues to come from thermal power plants, which dominate the country’s energy sector.

The Bahraini government is attracting international partners for renewable energy projects. In 2021, a Memorandum of Understanding (MoU) was signed between the Bahrain Sustainable Energy Authority and the Turkish company GETAŞ for “high-tech renewable energy projects.” In 2023, the Bahrain Ministry of Energy and Water Resources signed an agreement with GETAŞ for the “largest solar energy project” in Bahrain.

Largest Companies in the Market

EWA controls and manages Bahrain’s electricity infrastructure, including power plants, transmission lines, and distribution networks. The company also sets tariffs for electricity and water supply, develops energy infrastructure, and implements alternative energy sources.

Several other companies operate in Bahrain’s energy sector, including:

• Al Kooheji Electrical Contractors & Construction WLL – With a stellar track record of successful projects in Bahrain and the MENA region, Al Kooheji Contractors offers a wide range of services, including general contracting, design and construction, project management, and engineering services. Notable projects include Bahrain Bay, IKEA, and King Hamad University Hospital.
• Amad Baeed Electrical W.L.L. – Provides electrical contracting, installation, maintenance of lighting systems, energy-saving solutions, and consulting services. Key products include electrical substations, medium and low voltage cables, transformers, and fuses.
• Al Saad Power Projects Co. W.L.L. (APP) – Operating in Bahrain since 2006, APP specializes in civil, mechanical, and electrical construction. It offers services related to power transmission, distribution, and substations.
• Nass Electrical Contracting – A Bahraini electrical contracting company registered with EWA, known for its expertise in power distribution and transmission. Notable projects include Zayed Town, Hidd Industrial Area, and Durrat Infrastructure.
• Falcon Electrical WLL – An electrical engineering company and supplier of industrial and household electrical goods, offering a wide range of products sourced from various countries.

EPC (Engineering, Procurement, Construction) Players

Several companies in Bahrain lead in the fields of engineering, procurement, and construction (EPC) in the energy and infrastructure sectors:

China Energy Engineering Group Co., Ltd. (CEEC) – A Chinese company offering EPC services across energy and infrastructure sectors, including power plant construction.

Siemens – A global giant providing EPC services, including power plant construction and energy management solutions.

Hyundai Engineering & Construction – A South Korean company specializing in energy and infrastructure projects.

Daelim Industrial Co., Ltd – A South Korean company involved in EPC projects in oil, gas, and infrastructure sectors.

TechnipFMC – A global leader in the energy industry, focusing on EPC projects for offshore platforms and gas plants.

For the previous articles in the Series see Saudi Arabia, UAE, Oman, Kuwait and Qatar.

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However, like other Middle Eastern countries, the Kuwaiti government is trying to expand the use of renewable energy sources; due to its geographical location, solar energy is a priority for the development of renewable electricity generation. The total installed capacity of all electricity generation sources in Kuwait is approximately 20 gigawatts, with more than half of the electricity generated by thermal power plants that utilize natural gas, although the share of oil usage remains high (almost 40%). Kuwait has a well-developed electricity transmission system organized as a hierarchical network with step-down voltage. The energy market in Kuwait is highly monopolized, with the vast majority of generating and transmission capacities under state control.

The Structure of the Country’s Energy Sector

The main energy resource of the country is fossil fuel, and despite Kuwait being one of the leading oil exporters, it actively imports liquefied natural gas. As of August 2024, electricity production in Kuwait reached 10,462 GWh. According to forecasts from the Kuwait Institute for Scientific Research, the installed capacity is expected to reach 35 gigawatts by 2035. Only 70 megawatts came from renewable sources, while approximately 17 gigawatts (82.4%) came from gas turbine installations and about 3 gigawatts (16.7%) from combined-cycle installations.

Factors that increase electricity consumption include population growth, the expansion of water desalination, and the increased demand for cooling due to rising average summer temperatures (energy costs for cooling can account for up to 67-70% of total consumption). Inefficient energy consumption is also encouraged by the Kuwaiti government subsidizing up to 95% of electricity costs for end consumers.

In 2022, the total installed capacity of solar power plants was 93.4 megawatts. By 2030, the Kuwaiti government plans to increase the share of generation from solar power plants in the overall generation volume to 15%, which amounts to approximately 4.5 gigawatts.

Transmission and Distribution

Kuwait is among the countries where 100% of the population has access to electricity. The electricity distribution system is based on a stepped reduction of voltage as electricity moves from the generation point to the end consumer.

Since 2000, the number of substations with a voltage of 132 kilovolts has nearly doubled, increasing from just over 200 to 458, while the number of substations of other types has remained relatively unchanged. Accordingly, the length of 132-kilovolt transmission lines has increased, while the overall length of cables has practically remained the same.

The four main substations of 132/11 kilovolts are Rumaithiya C, Salmiya X, Egaila Entertainment Projects G, and Salwa E.

Kuwait is a founding member of the Gulf Cooperation Council Interconnection Authority (GCCIA), an organization that manages a unified electricity network for all six member countries, including Saudi Arabia, the United Arab Emirates, Qatar, Oman, and Bahrain. Within this energy union, the Al-Zour–Al-Fadhili–Gunain–Salwa transmission line operates, through which Kuwait and Saudi Arabia receive up to 1.2 gigawatts of electricity. A transmission line from Kuwait to Iraq, with a capacity of 1.8 gigawatts, is planned for completion in 2025.

Consumers

According to the International Energy Agency, the total energy consumption in 2020 was 68.1 terawatt-hours. The residential sector accounted for 96,296 terajoules (approximately 26.75 terawatt-hours), the industrial sector consumed 58,941 terajoules, and the service sector consumed 54,942 terajoules (with the service and industrial sectors together totaling approximately 16.37 terawatt-hours).

Largest Companies in the Market

The electricity market in Kuwait is predominantly situated in the public sector. The leading companies in electricity generation and distribution across the country are the Ministry of Electricity, Water Resources, and Renewable Energy. The ministry is also responsible for the import, purchase, and generation of electricity throughout the country.

The electricity generation sector also includes companies such as Shamal Az-Zour Al-Oula Power and Water Company K.S.C. and Az-Zour North Operation and Maintenance Company—these companies are part of a foreign consortium consisting of the French energy company Engie and the Japanese trading company Sumitomo Corporation.

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In 2023, Oman’s primary energy consumption is estimated to be around 1.41 quadrillion British Thermal Units (BTU). Despite ongoing efforts to diversify the energy mix, such as through solar photovoltaic (PV) projects, natural gas and oil remain the dominant sources of energy. Fossil fuels continue to account for most of the country’s energy consumption, reinforcing Oman’s energy independence. Oman is also a major exporter of crude oil and natural gas, primarily to Asian markets.

According to the 2022 World Energy Statistical Review, Oman’s primary energy consumption in 2021 was 1.50 exajoules. Natural gas accounted for 71%, followed by oil at 28%, and coal at0.7%. While the demand for electricity in the domestic market has grown steadily, production consistently exceeds demand. The surplus electricity is exported to other Gulf countries.

The Oman Power and Water Procurement Company (OPWP), a member of the Nama Group, is tasked with ensuring adequate electricity and water production at the lowest possible prices to meet the country’s growing demand. As the sole purchaser of electricity and water from Independent Power Producers (IPP) and Independent Water and Power Producers (IWPP) in Oman, OPWP plays a key role in the country’s energy market.

Nama Holding and Its Role

Formerly known as the Electricity Holding Company, Nama Holding was established in Oman on October 19, 2002. It operates as a joint-stock company, with the Oman Investment Authority—a state-owned enterprise—serving as its primary shareholder. Nama Holding owns stakes in ten companies involved in electricity and water procurement, production, transmission, supply, and distribution. It holds 99.99% of the government’s shares in eight electricity sector subsidiaries and 98.10% of the Dhofar Power Company.

The group also oversees the Nama Institute for Competency Development (NICD), focusing on workforce training and skill enhancement. These ten subsidiaries operate across the country, ensuring electricity and water needs are met nationwide.

At this stage, the extent of international company involvement in Oman’s energy market could not be determined.

Energy Structure of Oman

Generation Systems

Oman’s electricity and water sector consists of three independent market segments:

1. Main Integrated System (MIS): Serves northern Oman.
2. Rural Areas Electricity Company (RAEC): A vertically integrated utility that handles electricity generation, water desalination, and distribution in rural areas.
3. Dhofar Power System (DPS): Operates in the Dhofar region.

The RAEC manages generation, transmission, and supply operations, providing essential services to consumers in rural areas. Below are the regulated operations for the MIS and Dhofar systems.

Structure of subsidy flows in the energy sector of the Sultanate of Oman

Subsidy Flows and Renewable Projects

Oman is expanding its renewable energy portfolio. The Amin Solar Power Plant near the Nimr region, with a total capacity of 105 MW, began operations in 2020. The Ibri-2 Independent Power Producer (IPP) project started in 2022. Additionally, the Dhofar Wind Farm (Harweel Wind Farm), located in Dhofar province, operates with a capacity of 50 MW.

Transmission and Distribution Systems

The Oman Power and Water Procurement Company (OPWP) is responsible for securing electricity and water at competitive prices to meet growing demand. As a member of the Nama Group, OPWP serves as the sole purchaser of electricity and water from IPP/IWPP projects across Oman.

Nama Holding holds stakes in companies involved in all stages of the electricity and water supply chain, ensuring efficient production, transmission, and distribution. These companies manage operations nationwide to meet Oman’s energy needs effectively.

Key Players in Oman’s Energy Market

1. Oman Electricity Transmission Company (OETC):
   A state-owned enterprise responsible for managing Oman’s high-voltage transmission networks, ensuring stable power supply across the country.
2. Oman Power and Water Procurement Company (OPWP):
   Oversees the procurement and distribution of electricity and water through long-term contracts with producers, ensuring uninterrupted supply.

EPC Companies in Oman

Several engineering, procurement, and construction (EPC) companies operate in Oman, playing a crucial role in energy and infrastructure development.

• Galfar Engineering & Contracting SAOG:
  One of Oman’s largest engineering firms, involved in various infrastructure and energy projects.
• Larsen & Toubro (Oman) LLC:
  The Omani division of the Indian engineering giant, offering services across multiple sectors, including energy.
• Al Hassan Engineering Co. SAOG:
  Specializes in engineering and construction across the oil, gas, and energy sectors.
• Consolidated Contractors Company (CCC):
  An international construction firm active in Oman, focusing on civil and engineering projects.

For the previous articles in the Series see Saudi Arabia, UAE and Qatar

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According to various sources, the pharmaceutical market in the DRC has shown steady growth over the past decade. Key factors contributing to this include population growth, urban migration, and improved healthcare infrastructure supported by international organizations such as the Global Fund, UNICEF, and UNAIDS. In the same time, The Democratic Republic of Congo (DRC) has the second highest number of malaria cases and deaths globally.

Chapter 1: Market Growth and the Influence of International and Domestic Donors

In recent years, international partners, such as the World Health Organization (WHO), have continued to support the reform of the healthcare sector in the DRC. As a result, programs to improve the quality and availability of medicines in remote areas of the country have been launched. However, the issue of counterfeit drugs and the shortage of quality medical supplies remains pressing. Nevertheless, efforts to combat counterfeit products have led to the creation of stricter legislative measures for drug registration and quality control.

1.1 Strengthening Government Regulation

In recent years, the DRC has intensified government control over the pharmaceutical sector. One of the key structures remains the Direction de la Pharmacie et du Médicament, which continues to oversee the quality and safety of pharmaceuticals. However, despite increased oversight, corruption and insufficient coordination between government bodies remain serious issues.

As of 2023, several initiatives have been implemented in the country to centralize procurement and improve drug distribution, which were expected to reduce the level of counterfeit products in the market. One such step was the creation of the National Drug Supply System (SNAME), which helped optimize logistics and reduce delays in supply to public healthcare institutions.

1.2 The Role of Non-Governmental Organizations

Non-governmental organizations (NGOs) have continued to play a crucial role in providing medicines to remote regions. For example, Caritas Development Congo and IDA Foundation remained key players in drug delivery, especially during crises and epidemics.

1.3 Dynamics of the Private Sector

The private sector is showing growth and becoming increasingly competitive. Among the companies operating in the market are Pharmagros and Prince Pharma, which have continued to expand their product range. However, since the 2020s, new players have emerged in the market.

In recent years, several major international pharmaceutical companies have entered the DRC market, linked to improvements in the country’s investment climate and government support for healthcare development programs. Notable new companies include Sanofi, GlaxoSmithKline, PharmaKin, and Unichem Congo, as well as Indian and Chinese companies like Cipla and Sinopharm. These companies not only supply medicines but also implement educational programs on the use of their products.

Additionally, PharmaCongo, established in 2014, is actively involved in the import and distribution of pharmaceuticals, particularly in Kinshasa and other major cities. The company focuses on providing affordable generics. MedAfrik, established in 2017, has become one of the key players in the distribution of medical equipment and supplies, with their products being especially sought after in remote areas of the country. These companies have played a significant role in increasing the availability of medicines and reducing dependency on imports from India and China.

Chapter 2: Major Challenges

Despite positive changes, the pharmaceutical market in the DRC still faces several challenges:

1. Corruption: Corruption issues continue to undermine efforts to reform the sector.
2. Counterfeit Products: Although the level of counterfeit products in the market has decreased, it remains significant.
3. Economic Instability: Political instability and economic issues continue to hinder the growth of the pharmaceutical sector.

2.1 Combating Epidemics

From 2018 to 2020, the DRC faced several epidemics, including Ebola and COVID-19. In response, the pharmaceutical sector received substantial support from international organizations and focused on the availability of vaccines and antiviral drugs. For example, Johnson & Johnson actively supplied Ebola vaccines as part of the WHO program.

2.2 Development of Local Production

In an effort to stimulate local drug production, several new local pharmaceutical enterprises emerged in the 2020s. One of the most notable is PharmaCongo, which opened its manufacturing facilities in 2018. Local production remains limited, but the DRC government is actively working to increase the market share of domestic producers.

2.3 Strengthening Regulatory Measures

Due to ongoing issues with counterfeit drugs, the DRC government has begun to more strictly control the import of pharmaceutical products and the licensing of companies. Enhanced quality control measures have led to improved market transparency and increased access to quality medicines for the population.

Conclusion

The pharmaceutical market in the DRC remains attractive to investors due to its significant growth potential. In the coming years, further development of the private sector, the emergence of new companies, and improvements in the regulatory system are expected, especially with international support.

The pharmaceutical market in the Democratic Republic of Congo (DRC) remains a complex and challenging environment, shaped by both long-standing issues and new opportunities. Over the past decade, there has been a noticeable shift in the sector, driven by an increasing presence of private manufacturers, international organizations, and a government more open to reform. Key challenges from the early 2010s, such as corruption, bureaucratic inefficiencies, and the distribution of counterfeit medicines, have persisted to some degree but are increasingly met with modern solutions.

New pharmaceutical companies, such as PharmaKin and Unichem Congo, have emerged in the last decade, contributing to a more dynamic private sector that is able to meet growing demands for essential medicines. The involvement of these companies has alleviated some of the pressure on the public sector, which still faces significant challenges, including weak supply chains and limited access to remote regions.

However, despite these improvements, many structural challenges remain. Corruption, political instability, and the lack of regulatory enforcement continue to deter large-scale foreign investment and create hurdles for smaller local manufacturers. Furthermore, the economic situation in the DRC remains fragile, limiting both public and private efforts to reform the healthcare system effectively.

International partnerships, particularly with organizations such as the World Health Organization (WHO) and Caritas Development Congo, remain critical. These partnerships have played a vital role in bringing in essential drugs and addressing healthcare needs in underserved areas, including remote and conflict-affected regions. In addition, international aid programs focusing on health reforms have laid the foundation for more robust public health policies and infrastructure.

Looking ahead, the future of the DRC’s pharmaceutical sector will largely depend on the government’s ability to implement meaningful reforms. Continued efforts to modernize the public health system, reduce corruption, and streamline regulations will be essential for further growth. Furthermore, the development of local pharmaceutical production will be crucial to ensuring long-term access to affordable, high-quality medications for the Congolese people.

For international investors, the DRC represents both significant challenges and substantial opportunities. Companies that can effectively navigate the political and economic risks by forming strategic partnerships with local stakeholders and understanding the regulatory environment stand to benefit from the country’s vast market potential.

Ultimately, the Congolese pharmaceutical market offers a case study in resilience, where decades of hardship and instability have created space for innovative solutions and partnerships. The coming years will be crucial in determining whether the country can continue on its path towards a more stable, well-regulated pharmaceutical industry that better meets the needs of its population.

© 2024 United Action Foundation. All rights reserved. This publication may not be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the United Action Foundation, except in the case of brief quotations embodied in critical reviews and certain other non-commercial uses permitted by copyright law.

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Market Dynamics: State Control with Private Participation

Qatar’s electricity generation market is primarily dominated by state-owned companies, but private players also have a significant presence. In contrast, the transmission market is entirely state-controlled, managed by a single energy supplier and purchaser. Despite being part of an energy union with Saudi Arabia, the UAE, Bahrain, Kuwait, and Oman, Qatar maintains energy autonomy within this network.

Energy Structure of the Country

Following the diplomatic conflict with other Gulf countries from 2017 to 2021, Qatar achieved a high degree of energy independence. The country left OPEC in January 2019 as it shifted its energy focus from petroleum products to natural gas, becoming the world’s leading exporter of LNG with diversified supply routes.

Electricity Generation and Renewables

As of 2024, renewable energy contributes an estimated 5% of Qatar’s total energy mix, with a projection to increase to 18% by 2030. From August 2023 to July 2024, all electricity generated in Qatar came from natural gas, highlighting a lack of contributions from low-carbon sources like wind, solar, or nuclear energy.

Qatar Electricity and Water Company (QEWC), one of the largest energy companies in the Middle East, manages nearly all electricity generation and oversees new generation capacity projects. Qatar’s power generation infrastructure includes nine main power plants, such as the Ras Girtas Power Station, Umm Al Houl Power Plant, Ras Abu Fontas Power and Desalination Plant, and Al Kharsaah Solar Power Project—the only solar power plant among them.

The Ras Laffan Power Company Limited is a joint venture involving AES Corporation (55%), QEWC (25%), QatarEnergy (10%), and the Gulf Investment Corporation (GIC) (10%). It operates a power plant with an installed capacity of 756 MW. Qatalum, another key player, is a joint venture between QatarEnergy and Norsk Hydro and powers a large aluminum production facility.

Transmission and Distribution: State-Run System

Qatar ensures 100% access to electricity for its population. The Qatar General Electricity and Water Corporation (Kahramaa) manages the transmission and distribution of electricity, serving as the country’s sole purchaser of electricity. Kahramaa, which is fully government-owned, operates 372 primary substations.

Qatar’s main power transmission lines 

Regional Integration: The Role of the GCCIA

Qatar is a founding member of the Gulf Cooperation Council Interconnection Authority (GCCIA), alongside Saudi Arabia, the UAE, Kuwait, and Bahrain. The GCCIA’s transmission line connecting Doha to the regional power grid has a capacity of 750 MW, facilitating energy exchange among member states.

Major Energy Players in Qatar

QatarEnergy is the country’s largest national energy company. Its subsidiary, QatarEnergy Renewable Solutions, owns 60% of the Al Kharsaah Solar Power Project, with Phase 1 commissioned in June 2022 and Phase 2 in October 2022.

Procurement and Tenders

Kahramaa regularly conducts tenders in several areas, including:

• Electricity transmission and distribution
• Electricity usage planning
• Control of electricity systems
• General electricity projects

Consumer Trends and Energy Consumption

In 2023, residents in Qatar used an average of 225 megawatt-hours (MWh) of energy, all derived from fossil fuels. According to the International Energy Agency, Qatar’s total energy consumption in 2020 was 46.5 terawatt-hours (TWh), with the residential sector accounting for approximately 20.16 TWh, the industrial sector 10.46 TWh, and the services sector 8.34 TWh. Demand is driven by population growth, industrial expansion, water desalination needs, and increased air conditioning usage due to rising summer temperatures. The construction and operation of infrastructure for the FIFA World Cup also contributed to elevated energy consumption levels.

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The UAE operates 16 power plants (with two still under construction), most of which use natural gas as fuel. The electricity sector is managed by four state-owned entities under the Ministry of Energy’s oversight: the Abu Dhabi Water and Electricity Authority (ADWEA) in Abu Dhabi, Dubai Electricity and Water Authority (DEWA) in Dubai, Sharjah Electricity and Water Authority (SEWA) in Sharjah, and Etihad Water and Electricity (EWE), which replaced the Federal Electricity and Water Authority (FEWA) and serves Fujairah, Ras Al Khaimah, Ajman, and Umm Al Quwain. All of these entities operate under the Ministry of Energy and Infrastructure’s guidance.

Evolving Demand for Renewable Energy

The UAE’s electricity market is seeing increased demand from energy and construction companies, particularly in the field of renewable energy. This includes a growing interest in developing new solar power plants, solar parks, and other power stations. The UAE collaborates with foreign companies on these projects, showing a willingness to engage in international partnerships. However, Russian businesses have a limited presence in the UAE market.

Energy Structure of the Country

By the end of 2023, DEWA had an installed generation capacity of 15.7 GW, with 2.6 GW from clean energy sources. Most electricity in the UAE is produced domestically. According to the UAE’s Energy Strategy 2050, the country aims to increase the share of clean energy in its energy mix to 50% by 2050, which could result in savings of approximately USD 190 billion in energy costs. Key projects include the Barakah Nuclear Power Plant and the Al Dhafra Solar Plant, the world’s largest solar power facility, as well as the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, which is expected to reach a capacity of 5,000 MW by 2030.

Barakah Nuclear Power Plant: A Key Component of Energy Transition

The Barakah Nuclear Power Plant, developed with Korea Electric Power Corporation (KEPCO) and Emirates Nuclear Energy Corporation (ENEC), plays a crucial role in diversifying the UAE’s energy production. The plant’s first reactor, with a capacity of 1.4 GW, was commissioned in 2020, with additional units following in 2021, 2022, and the fourth unit entering commercial operation in 2024. Each unit generates up to 1,400 MW, making it a key player in meeting the growing demand for electricity.

Barakah Nuclear Power Plant

Solar Energy: A Growing Sector

The UAE’s solar energy potential is substantial, and its energy policy has evolved due to declining solar energy costs—prices for solar photovoltaic systems have dropped by more than 76% in the past five years. The UAE offers tax incentives, benefits, and competitive prices for Power Purchase Agreements (PPAs), making it an attractive market for foreign investors and companies in the solar sector.

Transmission and Distribution in the UAE

Electricity production, transmission, and distribution in the UAE are managed by four regional water and electricity authorities. ADWEA, DEWA, and SEWA oversee their respective emirates, while EWE handles electricity in the northern emirates. Dubai and Abu Dhabi have also created regulatory bodies, including the Dubai Supreme Council of Energy (DSCE) and Abu Dhabi Regulatory and Supervision Bureau (RSB), to oversee electricity policy.

The UAE is also a member of the Gulf Cooperation Council Interconnection Authority (GCCIA), which manages a unified electricity grid for the six GCC countries. The Abu Dhabi Transmission and Control Company (TRANSCO) links the UAE to this grid, ensuring regional connectivity.

Key Players in the UAE’s Electricity Market

The UAE electricity market is divided into electricity production, transmission, and distribution, with sources including natural gas, nuclear, and renewable energy. Major players include Abu Dhabi National Energy Company (TAQA), Transco, DEWA, ENEC, and Emirates Water & Electricity Company (EWEC).

• TAQA plays a critical role in Abu Dhabi’s energy strategy, meeting about 85% of the UAE’s electricity needs and 90% of its water requirements through eight power and desalination plants.
• Transco, a subsidiary of ADWEA, operates and maintains high-voltage electricity and water networks in Abu Dhabi, controlling about 68% of the UAE’s transmission network.
• DEWA is responsible for building the Hassyan clean coal power plant and other significant projects, while EWEC is focused on integrating water and electricity efforts across the emirates.

Involvement of Foreign Companies

Foreign companies interested in the UAE’s market typically choose between establishing a presence in the mainland UAE or creating a representative office in one of the country’s free zones. Joint ventures with local partners are common, and companies can benefit from tax exemptions in free zones. However, the UAE’s energy market remains partially closed due to the dominance of state-owned entities, limiting opportunities for privatization and private investment in infrastructure.

Despite this, the UAE has attracted partnerships with companies from Europe, Asia, and Southeast Asia, engaging in multi-billion dollar agreements, particularly in the solar energy sector. Yet, the absence of widespread privatization has been a barrier to more rapid modernization in the energy infrastructure.

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