Gambia death fallout: Pharma exports to African market slipped 5% in FY23

Medicines put up for retail sales led the decline in exports

India’s pharmaceutical exports to the African market dipped 5 per cent in FY23, at a time the quality of Indian drugs exported to African countries, such as Gambia, has come under scrutiny.

Africa continent contributed 18 per cent of the total $19.9 billion exports of finished pharma products, excluding active pharmaceutical ingredients (APIs), in FY23, according to the Commerce department data. While pharma exports to South Africa (7.6 per cent), Kenya (6 per cent), and Tanzania (1.1 per cent) increased, such exports to Nigeria (-13.5 per cent), Ethiopia (-1.4 per cent), Uganda (-22.7 per cent), and Ghana (-17.4 per cent) declined.

India’s cost-effective generic drugs are crucial in providing affordable health care solutions in Africa, including essential medicines for HIV/AIDS, malaria, tuberculosis, and other common ailments.

In October last year, cough syrups manufactured by Haryana-based Maiden Pharmaceuticals had come under scanner for alleged deaths of 70 children in the West Africa nation of Gambia. The deaths were linked to contamination of diethylene glycol (DEG) and ethylene glycol (EG) in the cough syrups. After reports of contamination in cough syrups sent from the country, the Central Drugs Standard Control Organisation (CDSCO) has sent a proposal to the Union health ministry to mandate testing of such medicines at government laboratories before exporting.

Among various regions of Africa, pharma exports to East Africa (3.5 per cent), North Africa (11.1 per cent), and South African Customs Union (4.9 per cent) increased while such exports to Other South African Countries (-13.7 per cent), West Africa (-11.6 per cent), Central Africa (-16.7 per cent) dipped. Of the total $3.6 billion pharma exports to Africa in FY23, West Africa ($958 million), East Africa ($853 million), and SACU ($663 mn) are the key destinations.

Among key pharma products, medicines put up for retail sales led the decline in pharma exports to Africa, contracting 15.7 per cent in FY23 followed by anti-Malaria drugs (-11.3 per cent) while exports of non-steroidal anti-inflammatory, analgesics and antipyretic drugs (8.24 per cent) and anti-tubercular drugs (13.9 per cent) increased to the continent.

 Uday Bhaskar, director general, Pharmaceutical Exports Promotion Council (Pharmexcil), said the exports to the African region had dropped for several reasons. “During the pandemic years, these countries were buying medicines and other medical products with funds from non-profits and other NGOs. Now, the NGO funds have been diverted, and therefore, the orders also have reduced,” he said, adding that some countries in the region like Nigeria have experienced serious currency issues and this has also led to some reduction in orders.

The West African nation of Nigeria has struggled with political uncertainty, a note ban, and poor economic growth. In October 2022, Nigeria’s central bank announced its decision to demonetise 200, 500, and 1,000-naira notes. Nigeria is a major destination country where big Indian drug companies like Sun Pharmaceutical Industries have manufacturing presence. Sun Pharma is among the top 10 consumer healthcare companies in Nigeria.

The Indian embassy was working with Pharmexcil to help exporters meet stakeholders in Nigeria — like trade associations and also the National Agency for Food and Drug Administration and Control (NAFDAC), Bhaskar had said earlier this year. The NAFDAC is a federal agency under the Federal Ministry of Health that is responsible for regulating and controlling the manufacture, importation, exportation, advertisement, distribution, sale and use of food, drugs, cosmetics, medical devices, chemicals and packaged water.

Bhaskar said pharma exports to the African region in FY23 were $3.64 billion, down 5.3 per cent from $3.85 billion in FY22.

Chirag Doshi, a Gujarat-based exporter and former chairman of the Gujarat chapter of the Indian Drug Manufacturers Association, said during the pandemic there were a lot of medicines buying in Africa as it was receiving funds from non-profits. “Medicines typically have a shelf life of 3-5 years, and now the channel stock in these countries is high. Until there is some liquidation of that stock, the order flows would not rise,” Doshi explained.

Bhaskar said FY23 overall Pharma exports, including drugs formulations and biologicals, bulk drugs, drug intermediaries, Ayush and herbals and surgicals, rose 3.25 per cent to $25.39 billion.