Ethiopia Positioned to Become Africa's  Pharmaceutical  Manufacturing Hub: EPA

Addis Ababa, September 30, 2026 (ENA) — Ethiopian Pharmaceutical Association (EPA) has reaffirmed that Ethiopia is well-positioned to become a leading pharmaceutical manufacturing hub in Africa.

In an exclusive interview with ENA, President of EPA Dr. Daniel Waktole noted recent policy reforms, improved regulatory frameworks, and a growing influx of investments have created highly favorable conditions for local production.

In fact, manufacturing is one of the main economic pillars under Homegrown Economic Reform Agenda along with  Agriculture, Mining, Tourism, and Technology and the Digital Economy (ICT).

He further stressed even if the country previously introduced various policies, proclamations, and directives, the sector historically struggled to expand due to a lack of adequate attention to the sector. 

Thus, Previously, no domestic pharmaceutical manufacturer met the stringent quality standards required by the World Health Organization (WHO) or the Ethiopian Pharmaceuticals Supply Agency, according to Dr. Daniel.

"The situation has changed significantly in recent years," he stated, highlighting that about seven pharmaceutical factories now meet international Good Manufacturing Practice (GMP) requirements.

This milestone signals a major turning point for the nation's healthcare and industrial capabilities, he underscored.

“This progress will pave the way for Ethiopia to become Africa’s hub for pharmaceutical manufacturing,” said Dr. Daniel.

Citing the government’s growing focus on strengthening local capabilities, he projected that domestic production could meet 60 to 70 percent of Ethiopia’s pharmaceutical demand within the next three to five years.

He also mentioned that the Kilinto Special Economic Zone is the first of its kind in Africa for pharmaceutical manufacturing, attracting many investors and well-known, high-standard companies are starting production.

Drawing on his dual perspective as a pharmacy owner and president of the Ethiopian Pharmaceutical Association (EPA), he noted that the sector has made remarkable strides in developing local expertise and reducing dependence on foreign technical personnel.

“Four years ago in my factory, foreign experts managed the entire algorithm setup without a single Ethiopian on the team,” he said. “Today, through targeted training and capacity building, foreign personnel account for barely 3 percent of our workforce. 

Fully replacing foreign technicians in such a short period is a massive achievement, and other factories are following suit.”

The president attributed recent shifts in policy attention to the COVID-19 pandemic, which exposed vulnerabilities in Ethiopia's supply chains and underscored the urgency of self-reliance.

“During the pandemic, we faced severe supply chain challenges and struggled to import even basic items like paracetamol,” he recalled. “Even though producing it locally was straightforward, domestic manufacturing had not yet received the necessary attention.”

According to him, the government has introduced a series of policy, regulatory, and institutional reforms over the past two years to encourage both local and foreign investment.

A major milestone in this effort is the introduction of long-term supply arrangements.

“For the first time in Ethiopia, a local supplier signed a fixed, seven-year contract. That was a massive breakthrough,” he said.
Previously, manufacturers faced considerable uncertainty, as operations depended heavily on volatile individual tenders, foreign aid programs, and imported supplies. 

“If you relied on foreign aid or imported goods, your factory could be forced to close if you failed to win a tender,” Dr. Daniel explained. “Now, that uncertainty is gone, and manufacturers are granted seven-year contracts that allow them to focus strictly on production.”

Ultimately, he concluded, the combination of supportive policies, extended market commitments, increased investment, and growing technical capacity is building a robust foundation for the future of Ethiopia’s pharmaceutical industry.