Private Pharmaceutical Market Projected to Grow as India Dominates Medicine Imports

Tanzania’s private pharmaceutical market was projected to experience significant growth, driven by increasing demand for medicines and a heavy reliance on imported pharmaceutical products, particularly from India.

A study published in the scientific journal PLOS ONE projected that pharmaceutical imports through Tanzania’s private-sector supply chain would reach approximately US$906 million (equivalent to about TSh 2.1 trillion) during the 2020/2021 financial year.

The researchers estimated that the market would grow by approximately 28% compared with its earlier value, highlighting significant opportunities for pharmaceutical manufacturers, importers and distributors seeking to expand their presence in Tanzania.

The findings also revealed that India was the leading source of imported medicines, accounting for more than half of the country’s private-sector pharmaceutical imports.

India dominates Tanzania’s pharmaceutical import market

India emerged as Tanzania’s largest supplier of imported pharmaceutical products, accounting for approximately 54% of the cumulative value of pharmaceutical imports recorded between 2013 and 2016.

According to the study, Egypt was the second-largest source, contributing 11.7% of imports, while Switzerland and the United States each accounted for approximately 4.1%.

Other countries supplying pharmaceutical products to Tanzania included South Africa, Kenya, Malaysia, Bangladesh and the United Arab Emirates.

The research identified 74 countries supplying pharmaceutical products to Tanzania, demonstrating the country’s extensive reliance on international pharmaceutical supply chains.

India’s dominant position reflects its established pharmaceutical manufacturing industry, particularly in the production of generic medicines, which are widely distributed across developing countries.

The researchers noted that the country’s pharmaceutical market was predominantly supplied by imported medicines, creating opportunities for international manufacturers seeking to expand into emerging markets.

Read the full research paper: Pharmaceuticals Imports in Tanzania: Overview of Private Sector Market Size, Share, Growth and Projected Trends to 2021.

Pharmaceutical imports projected to reach US$906 million

The study analysed pharmaceutical import records covering the 2013/2014 to 2015/2016 financial years and used the findings to forecast future market trends.

During the 2013/2014 financial year, private-sector pharmaceutical imports were valued at approximately US$216 million.

The researchers subsequently projected that imports would increase to approximately US$704 million during 2018/2019 before reaching US$906 million in 2020/2021.

The researchers cautioned that these projections could change depending on market conditions, including improvements in local pharmaceutical manufacturing capacity.

Importantly, the analysis covered medicines entering the private-sector supply chain and did not include pharmaceutical procurement through the government’s Medical Stores Department (MSD).

Private pharmaceutical distributors dominate the import business

The research identified 397 different suppliers involved in importing pharmaceutical products into Tanzania between 2013 and 2016.

Among local pharmaceutical distributors, Phillips Pharmaceutical (T) Limited held the largest market share at 16.2%.

Other leading distributors included:

These five companies represented a substantial proportion of pharmaceutical imports handled by private-sector distributors during the study period.

The research also identified major international manufacturers supplying medicines to Tanzania, including Cipla Limited, Egyptian International Pharmaceutical Industries Company, Astra Lifecare, Lincoln Pharmaceuticals and Unichem Laboratories.

The findings demonstrated the important role played by private pharmaceutical distributors in connecting international manufacturers with Tanzania’s medicine market.

Tablets and capsules account for a significant share of imports

The study also examined pharmaceutical imports according to dosage forms, identifying tablets as the most imported pharmaceutical formulation.

Tablets accounted for approximately 57.5% of the cumulative import value, followed by:

The findings suggested that solid dosage forms, particularly tablets and capsules, represented attractive opportunities for pharmaceutical manufacturers considering investment in Tanzania.

The researchers observed that these formulations could offer manufacturing advantages, including relatively straightforward production processes and opportunities to achieve economies of scale.

For prospective investors, expanding local production of commonly imported dosage forms could help address domestic demand while reducing dependence on foreign suppliers.

Growing demand for medicines used to treat non-communicable diseases

Another important finding was the increasing pharmaceutical market demand associated with non-communicable diseases (NCDs).

Conditions such as diabetes, cardiovascular diseases and cancer were contributing to a growing need for medicines used in long-term disease management.

The study found a relatively balanced distribution of pharmaceutical imports between medicines used for communicable and non-communicable diseases.

This trend highlighted the changing nature of Tanzania’s pharmaceutical market, where demand was increasingly influenced by the growing burden of chronic diseases alongside existing infectious disease challenges.

Pharmacist Tumaini Makole of the Pharmacy Council Tanzania observed that the increasing burden of NCDs could contribute to the expansion of the private pharmaceutical market.

He also attributed the growth in private healthcare demand partly to inadequate healthcare services and shortages of healthcare providers in some public-sector facilities.

Patients seeking treatment from private healthcare providers consequently contributed to demand for medicines distributed through private pharmaceutical supply chains.

For additional information about pharmaceutical regulation and professional oversight, visit the Pharmacy Council of Tanzania.

Local pharmaceutical manufacturing remains an investment opportunity

Despite the projected growth in pharmaceutical imports, Tanzania was continuing efforts to strengthen its domestic pharmaceutical manufacturing industry under the National Five-Year Development Plan 2016/17–2020/21.

However, concerns remained about the declining contribution of local manufacturers to the country’s pharmaceutical requirements.

Commenting on the findings, Tumaini Makole noted that the country’s dependence on imported medicines could continue increasing if domestic pharmaceutical manufacturing remained unstable.

The situation highlighted the importance of creating a more favourable environment for local pharmaceutical manufacturers through investment incentives, improved infrastructure and policies supporting domestic production.

Strengthening local manufacturing capacity could also reduce exposure to international supply disruptions and foreign exchange fluctuations.

The Medical Stores Department (MSD) plays an important role in Tanzania’s public pharmaceutical supply chain, while the private sector remains a major supplier of medicines to private pharmacies, hospitals and other healthcare providers.

Opportunities for pharmaceutical investors and manufacturers

The projected expansion of Tanzania’s private pharmaceutical market presented several opportunities for local and international investors.

These included:

• Pharmaceutical manufacturing: Establishing factories to produce generic medicines and commonly imported pharmaceutical formulations.

• Importation and distribution: Expanding pharmaceutical distribution networks to meet growing demand from pharmacies and private healthcare facilities.

• Generic medicines: Increasing access to affordable generic medicines for communicable and non-communicable diseases.

• Local production of tablets and capsules: Investing in dosage forms that accounted for the largest share of pharmaceutical imports.

• Specialised medicines: Developing supply capabilities for medicines used in the management of diabetes, cardiovascular diseases and other chronic conditions.

For international pharmaceutical manufacturers, Tanzania offered an opportunity to access a growing market through partnerships with local distributors and investment in domestic production.

For local investors, the findings highlighted potential opportunities to expand pharmaceutical manufacturing and distribution businesses.

Conclusion

Tanzania’s private pharmaceutical market was projected to experience considerable growth by 2021, with pharmaceutical imports expected to reach approximately US$906 million.

India’s dominance, accounting for 54% of pharmaceutical import value during the study period, demonstrated the country’s significant influence on Tanzania’s medicine supply chain.

The research also highlighted the growing demand for medicines used in the management of non-communicable diseases and the importance of tablets and capsules in the pharmaceutical import market.

While increasing pharmaceutical imports presented opportunities for international manufacturers and distributors, the findings also reinforced the need to strengthen domestic pharmaceutical manufacturing.

Developing local production capacity would be important in reducing import dependence, improving medicine security and creating opportunities for investment in Tanzania’s pharmaceutical industry.