World Bank Commends Ethiopia's Pharmaceutical Sector for Boosting Healthcare, Job Creation  

Addis Ababa, July 20, 2025 (ENA) -- The World Bank has applauded Ethiopia's commitment to expanding its domestic pharmaceutical manufacturing sector, hailing it as a transformative strategy.

In an exclusive interview with ENA, Sherin Varkey, World Bank Program Leader for Human Development for Ethiopia, South Sudan, Sudan, and Eritrea, underscored the initiative's importance.

He emphasized that this initiative is recognized for its potential to significantly enhance healthcare access, generate employment opportunities, reduce the nation's reliance on imported medicines, and foster inclusive economic growth.

"Enhancing local pharmaceutical manufacturing is vital for Ethiopia’s self-reliance and healthcare delivery," Varkey stated. "It’s also a tremendous opportunity for job creation. With two million youth entering the labor market each year, the health sector presents a critical avenue for generating more and better employment opportunities."

Varkey also noted that while Ethiopia has made significant strides in healthcare, challenges remain, particularly in ensuring a consistent and affordable supply of quality medicines.

Expanding local production, he noted, is key to meeting these needs and advancing health equity.

He also noted the broader economic benefits, pointing to studies indicating that every job created in healthcare can generate up to 3.4 additional indirect and induced jobs across other sectors.

“This makes the health sector a powerful engine for economic growth and inclusive development,” he underscored.

Recent macroeconomic reforms by the Ethiopian government have created a more favorable environment for private sector investment. Varkey pointed to the establishment of the Kilinto Industrial Park, designed specifically to attract pharmaceutical manufacturers, as a testament to the government’s commitment to industrial development.

“The Kilinto Industrial Park, supported by investment incentives and infrastructure, is a model initiative that positions Ethiopia as a competitive pharmaceutical hub in Africa,” he stated. “Institutions like the Armauer Hansen Research Institute (AHRI) also play a critical role in providing technical support and strengthening the local pharmaceutical ecosystem.”

The World Bank, together with its private sector arm, the International Finance Corporation (IFC), has been actively supporting Ethiopia’s pharmaceutical ambitions.  Beyond financing, the institutions provide technical expertise, policy guidance, and capacity-building support to ensure that healthcare reforms are sustainable and inclusive, he added.

“Our partnership with Ethiopia is focused on transforming the health sector into a foundation for economic growth and social development,” Varkey stated. “Local pharmaceutical manufacturing is central to this vision, and we remain committed to supporting Ethiopia’s journey toward resilience and self-sufficiency.”