How China-Africa trade develops rapidly to discover the African pharmaceutical market

Business News Agency On September 20th, a large delegation including representatives of the Ministry of Commerce and the State Food and Drug Administration and a representative of more than 30 pharmaceutical companies organized by the China Chamber of Commerce for the Import and Export of Medicines and Health Products embarked on a hot spot in Africa. . The delegation will promote China's good medical and pharmaceutical standards, establish a good image of China's pharmaceutical companies and products, and at the same time help the Chinese enterprises to explore the African market and promote the sound and rapid development of Sino-African pharmaceutical trade.

China-Africa Trade Develops Rapidly

From 2001 to 2008, Africa became one of the fastest growing regions in the world with an average annual growth rate of 5.6%. Although in 2009 due to the impact of the global financial crisis, the growth rate dropped steeply to 2.5%, but still higher than the economic growth rate of most countries in the same period. According to the forecast of the African Development Bank, with the recovery of the global economy, Africa’s real GDP growth in 2010 will reach 4.5%, and it will reach 5.2% in 2011.

China-Africa trade is also growing rapidly. In 2008, China’s trade volume with Africa reached 106.8 billion U.S. dollars, a record high. In 2009, under the impact of the global economic crisis, China-Africa trade volume was still as high as US$91.07 billion. According to the latest data from the Ministry of Commerce, in 2010, the bilateral trade volume of China-Africa trade increased significantly year-on-year, and the annual trade volume between China and Africa is expected to exceed 100 billion U.S. dollars again. At the annual meeting of the Davos New Champions held in Dalian in 2009, Aide, deputy governor of Nigeria’s Central Bank, stated that “China’s overall influence in Africa is on the rise.” He believes that Africa’s relations with China are mutually beneficial and welcomes China to Africa. investment.

Since July 1 this year, according to the relevant exchange notes signed by 26 African least developed countries including China, Ethiopia, Liberia, Congo (DRC) and Mozambique, 60% of the products in the above countries have begun to enjoy tax exemption for exports to China. Zero-tariff treatment will help reduce the cost of importing enterprises, broaden China's import channels, enrich China's market, and at the same time lay a solid foundation for the further development of China-Africa trade.

Huge business opportunities to be discovered

According to relevant statistical data, the population of Africa is about 900 million, accounting for about 12% of the world's population. However, the annual drug consumption is more than 10 billion US dollars, which is only 1% of the world's total. In addition, 70% of the world's AIDS patients are in Africa, and the number of AIDS patients and virus carriers in Africa exceeds 26 million; 42 species of malaria are endemic in 46 countries; 90% of global malaria cases are in Africa; and 2.4 million new cases of TB are reported each year. The number of deaths due to tuberculosis was as much as 540,000.

In most African countries, the level of per capita medical expenditure is relatively low. The pharmaceutical industry in Africa is developing in a dual urban and rural environment. Modern medical methods coexist with traditional herbal medicine and modern medicine dominates. Many countries have implemented publicly funded medical care systems, but the foundation of the pharmaceutical industry is relatively weak, and medical and health facilities are not perfect. Except for South Africa and Egypt, a few countries have a good pharmaceutical industry base, other African countries produce drugs that are mainly used antibiotics and antipyretics Pain and other common drugs, the dosage form is relatively single. The lack of supporting conditions for local industries, raw materials for the manufacture of pharmaceuticals, and packaging materials all rely on imports. However, at present, many African countries have already increased their investments in the medical and health fields, and drug spending has been increasing. Therefore, for China's pharmaceutical companies, the African market has huge business opportunities.

At present, most drugs in the African market rely on imports. There are usually three channels for drugs to enter Africa:

The first is procurement by international organizations. Funds provided by the United Nations Fund, the International Red Cross Society, the World Health Organization, the United Nations Children's Fund and other international organizations are free of charge to difficult areas in Africa through several funds. The free drugs are mainly targeted at AIDS, malaria, tuberculosis and bird flu. At present, the procurement of international organizations refers to the list of recommended drugs and recommended supplier procurements for various diseases issued by the World Health Organization every year.

Second, international organizations allocate a portion of global funds and proceeds to African countries. Public hospitals in African countries implement government procurement.

The third is the private market, including pharmacies, pharmacies, private hospitals, and clinics. For foreign drugs to enter the private market in Africa, they need to be approved by the governments of various countries. The situation varies from country to country.

China-Africa pharmaceutical trade has a foundation

In the area of ​​pharmaceutical trade, the trade volume of China-Africa pharmaceuticals in 2001 was only 199 million U.S. dollars, and in 2009 it had reached 1.140 billion U.S. dollars, of which 1.10 billion U.S. dollars were China's exports of pharmaceutical products to Africa.

The products exported by China to Africa are relatively stable. Taking 2009 as an example, Chinese medicine accounted for 3.26%, western medicine accounted for 62.9%, and medical equipment accounted for 33.91%. Among them, China's exports to Africa are dominated by APIs. The export of pharmaceutical preparations has been increasing. Antibiotics and anti-infective drugs have dominated. The growth of biochemical drugs has been rapid. Heparin has increased by 668.98% year-on-year in 2009. In addition, China’s medical device exports to Africa have increased significantly. In 2009, it reached US$ 373 million. Disposable consumables, medical accessories and hospital diagnostic and therapeutic products dominated, accounting for about 85% of the device category for 10 consecutive years.

According to the statistics of the Ministry of Commerce, about 1 million Chinese people currently open up markets in Africa. With the advancement of comprehensive cooperation between China and Africa, this number is still growing.

As African countries’ economic growth and population increase, per capita medicine consumption will also gradually increase. Chinese enterprises can use accumulated years of experience and mature production technologies to invest and set up factories in African countries, produce APIs and pharmaceutical intermediates, or jointly develop new products with pharmaceutical companies in African countries, such as the production of health products.

How to Discover the African Market

At present, most drugs in the African market come from western countries such as the United States, Britain, Germany, France, and Italy, and drugs from Japan and India have also entered the African market one after another in earlier years. China's pharmaceutical products have not yet entered the mainstream market in Africa, partly because of the long-term impact of colonial rule on African history, resulting in the formation of different medical systems. The pharmaceutical market has long been monopolized by Western developed countries; on the other hand, Chinese pharmaceutical export enterprises There are also some problems in itself. For example, some companies do not require high grades of products sold to Africa, and lax control over quality product packaging and manuals. Some companies do not conduct in-depth research on the formulations and colors of products, resulting in products. Does not meet the African people's habits, can not be recognized. To this end, what Chinese enterprises need to do now is to actively establish a good image of Chinese pharmaceutical products, strive to develop the products needed in the African market, and find channels for entering mainstream consumer groups.

In the African market, if you want to obtain large orders from African governments, you must first try to enter the list of recommended drugs of the United Nations and obtain qualified supplier qualifications. In addition, building a pharmaceutical sales network in an African country is also a short cut to the market. At present, Tianjin Tianshili Group, one of the pioneers in the development of the African market in China, has established some sales networks. Domestic pharmaceutical companies can further open the African market through this sales channel.

What needs to be reminded is that companies should pay attention to the following three aspects when exploring the African market: First, they must understand the local policies and regulations in detail, and must fully grasp the investment environment; Second, they must choose the right partners in the region. It will play a multiplier role in the future investment results; Third, the investment projects must meet the needs of the local market and have a good market prospect. At the same time, we must also strengthen our understanding and understanding of African culture so as to avoid unnecessary friction caused by cultural differences.