Big Pharma is dominated by the US (United States), Switzerland and France, with Egypt minimally present in comparison. Egypt’s pharmaceutical industry is increasingly becoming the regional leader for drug manufacturing and production. Among the top pharmaceutical producing countries, China and India, founding BRICS+ members are featured and as of September 2024, 90% of Egyptian drug consumption was locally produced, with the number of pharmaceutical factories increasing by one-third over the past decade, according to Ahram Online.

Benefits of Localising Egypt’s Pharmaceutical Industry

Localising the Egyptian pharmaceutical industry if done effectively will hold massive benefits in a plethora of ways for Egypt's future and the region. The country not only achieves self-sufficiency by reducing its dependence on costly drug imports but also diversifies its export portfolio and strengthens economic ties with neighboring states across Africa and the Middle East. Additionally, it opens the sector for more FDI (Foreign Direct Investment) opportunities. After Saudi Arabia, Egypt is ranked second in terms of value of the Pharma market in MENA (Middle East and Northern Africa).

BRICS+ Collaboration in Pharmaceutical Advancements

In Egypt, the main pharmaceutical producing countries have an opportunity to engage in sharing best practices, have collaborative programs and can make a major impact in the industry representing the global South. Recently, the Egyptian Ministry of Health and Population has signed two new cooperation protocols with the Upper Egypt Development Authority focused on the expansion of medical services, enhanced hospital facilities, strengthened family healthcare, and improved diagnostic and surgical services. As the relationship between Egypt and BRICS+ countries develops, the advancements that this agreement will provide can be replicated in other member countries which have the same healthcare dynamic. Conversely, BRICS+ members with stronger healthcare statuses can advise and give guidance to Egypt’s government-led initiative ‘New Beginning to Build the Egyptian Person’.

Egypt’s Medical Tourism and Pharmaceutical Growth

Pairing the pharmaceutical stature with Egypt’s high revenue-generating tourism sector, the country is set to become a key player in the global healthcare landscape by increasing its prevalence in Egyptian medical tourism.

Historical Foundations of Egypt’s Pharmaceutical Sector

Egypt has a long history in pharmaceuticals, considering it is one of the oldest strategic sectors dating to 1934 with the establishment of Misr Pharmaceutical Company (Holdi Pharma). The country has over 60 firms and 172 factories producing a wide range of medications at different levels of industry. The market has recently been valued at EGP 5 billion annually ($1 billion), and by 2030, it is projected that the export growth will grow to $3 billion particularly to African markets. Despite that, Egypt is one of seven African countries with vaccine manufacturing capacity, the other countries are Morocco, Senegal, South Africa, Ethiopia and Tunisia.

COVID-19’s Impact on Egypt’s Pharmaceutical Standing

Despite all the tragedy that COVID-19 brought across industries globally, it successfully boosted Egypt’s pharmaceutical positioning on a global scale. Evidence of this is seen by medical supplies from Egypt being relied on by European countries such as the UK; this shows the quality of medical products produced from Cairo. Other factors that positively contribute to Egypt’s successful pharmaceutical exports include, fair pricing, effective public-private partnerships to strengthen capabilities and incorporating technological innovations like automation, digitising supply chains and artificial intelligence (AI). Combined these developments streamline the drug production processes, reduce costs, aids in optimising the development process by identifying the most compatible drug formulations, ensures more accurate inventory management, overall improving the sector’s efficiency, reducing human error and decreases labour costs.

Reducing Africa’s Dependence on Pharmaceutical Imports

Africa imports most (80-94%) of its medical supplies, unlike the EU (6.6%), making it reliant on external suppliers like China, India, and the EU. Egypt's potential as a pharmaceutical hub could mitigate this dependency, enhancing public health resilience and economic stability, especially during global disruptions.

Mega Projects and the Future of Egypt’s Healthcare Sector

Egypt is positioning itself as a medical tourism destination by capitalising on African healthcare innovative advancements and mega construction projects like the Medical City in NAC (New Administrative Capital) . This initiative aims to curb the trend of patients seeking care abroad and attract patients from Gulf countries by providing high-level services locally. Gypto Pharma City, the largest pharmaceutical city in the Middle East, will play a significant role in boosting Egypt's medical tourism, particularly for R&D, treating chronic diseases, cancer, dental work, and fertility treatments, all at cost-effective rates.

Egypt's pharmaceutical industry is driving economic growth, with Cairo positioned to become a major pharmaceutical hub. Through investment in laboratories, innovative treatments, and infrastructure, Egypt aims to provide affordable, high-quality healthcare to Africa, the Middle East, and other regions.

Written by:

*Dr Iqbal Survé

Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN

*Banthati Sekwala

Associate at BRICS+ Consulting Group

Egyptian & South African Specialist

**The Views expressed do not necessarily reflect the views of Independent Media or IOL.