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Market |
Healthcare and Medical |
Report Type |
Market Research |
Country |
Zimbabwe |
Published |
3 March 2010 |
Number of Pages |
74 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
The total pharmaceutical market in Zimbabwe will increase from US$41mn in 2009 to US$63mn by 2014 at a compound annual growth rate (CAGR) of 8.8%, which will rise to 13.9% during the 2014-2019 period. By 2014, expenditure on medicines will account for 0.001% of GDP. Spending is largely expected to be driven by exports, with foreign drugmakers showing a renewed but highly cautious interest in Zimbabwe.
With unemployment expected to remain high, purchasing power will continue to be lower than in other African countries. Rising demand for antiretrovirals (ARVs) will be no surprise, but since the pharmaceutical market effectively rebased to unacceptably meagre levels several years ago, spending will be directed at essential medicines such as anti-infectives, anti-parasitic and analgesics only. Any evolution of the pharmaceutical market into more sophisticated medicines is unlikely to happen until broader economic stability is revived.
Per-capita spending on medicines will remain low, starting from US$3.24 in 2009 and reaching US$4.56 by 2014. Our 10-year outlook sees this figure reaching US$8.03 by 2019, reflecting our cautious view. Healthcare spending is expected to rise from US$230mn in 2009 to US$790mn by 2014, representing a CAGR of 25.5%. We caution that a sizeable portion of this money will come from foreign aid and in light of Zimbabwe’s recent political and economic history, may not be entirely realised in the context of actual healthcare services. Per-capita spending on healthcare will rise from US$19.9 in 2009 to US$57.3 by 2014.
There is no operational or national health insurance scheme and therefore doctors’ fees and prescriptions are all paid for out-of-pocket. Hospitals are overwhelmed and poorly resourced, with a critical shortage of qualified medical staff and the rise in per-capita healthcare spending should be considered within this context. By 2014, purchasing power and access to healthcare is likely to remain extremely low. The economic recovery continues to take place in Zimbabwe, despite the recent political volatility, and we now see real GDP growth of 4.6% in 2009 and 15.2% in 2010. Our sanguine view for the economy is premised on a political environment which, while being far from perfect, will be favourable enough to attract foreign capital for investment in existing capacity.
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