Regional Manufacturing: Challenges and Opportunities
by Safia Ahsan, Senior Technical Officer
The Reproductive Health Supplies Coalition’s (RHSC’s) General Membership Meeting (GMM) took place 16–20 October 2023 in Accra, Ghana. On the final day of the week, a plenary session looked at opportunities for regional manufacturing in sub-Saharan Africa (SSA). This is one of the most fascinating and rapidly developing areas of interest across sub-Saharan Africa. While regional manufacturing is not a new concept, it has gained momentum dramatically since the COVID-19 pandemic.
Ademola Osigbesan of Unitaid moderated, and kicked off the session by asking the plenary audience to use Mentimeter to identify which of these products (oxytocin, misoprostol, contraceptive implants, male condoms, and disposable menstrual products) are manufactured in SSA. The correct answer was all of them are, except for contraceptive implants. The audience was also asked for their opinion on the most important factor for the successful development of regional manufacturing in SSA. Popular answers included quality, financing, technology transfer, and demand. Following Ademola’s introduction to the session, Perrer Tosso of US Pharmacopeia (USP) summarized the RHSC-commissioned landscape analysis now being conducted by USP on regional manufacturing of maternal health (MH) products in SSA.
Harmonization and collaboration are key concepts in support of regional manufacturing. Harmonization is needed in areas such as quality assurance standards, taxes, and trade regulations.
Three panelists (Ashley Smith of USAID, Adrian Dongus of the Sanitation and Hygiene Fund, and Lucia Addae of the West African Pharmaceutical Manufacturers Association) then probed various challenges faced by manufacturers when deciding whether to start manufacturing a new product. These challenges are in areas such as affordable financing, market demand, and incentives to manufacture. Panelists also mentioned the escalated challenges that would be faced by new manufacturers of hormonal contraceptives, including strict quality assurance requirements and a complex regulatory environment. And they discussed the need for a business case to justify manufacture of reproductive health (RH) and MH products in SSA, an approach to increase cost competitiveness of regional manufacturers, and strategies to reduce supply chain vulnerabilities.
Harmonization and collaboration are key concepts in support of regional manufacturing. Harmonization is needed in areas such as quality assurance standards, taxes, and trade regulations. And collaboration or coordination is needed among various actors on the Continent, as well as among relevant donors. For example, it is important to understand the identity of primary buyers for the products to be regionally manufactured and to have frank conversations amongst buyers about their willingness to pay a premium in at least the short term to build regional manufacturing. Coordinated policies and partnerships will be required on a variety of fronts.
While the challenges are daunting, the momentum for regional manufacturing across health areas and product categories is strong. And the RHSC will continue to lead in moving dialogue forward concerning regional manufacturing.
