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North Africa's largest growing healthcare and pharmaceutical market – Algeria

3 novembre 2017

Business Monitor International

North Africa: Algeria's large and growing healthcare and pharmaceutical market will continue to drive interest from multinational drugmakers over the forecast period. Meanwhile, Algeria's pharmaceutical exports will continue to expand as the country gradually strengthens its position as a key drug manufacturing hub in the Middle East and Africa region. Import restrictions and market access barriers are set to benefit drugmakers that engage in domestic production or joint ventures with local manufacturers, although the Algerian market w ill remain dependent on imported high-end pharmaceuticals given limited local production capacity for these products.

Expenditure Projections - Pharmaceuticals: DZD411.62bn (USD4.10bn) in 2015 to DZD440.26bn (USD4.02bn) in 2016; +7.0% in local currency and -2.0% in US dollar terms. Forecast revised downwards from last quarter. Healthcare: DZD1.21trn (USD12.09bn) in 2015 to DZD1.29trn (USD11.84bn) in 2016; +6.9% in local currency and -2.1% in US dollar terms. Forecast revised upwards from last quarter.

In Q416, Algeria's Pharmaceutical RRI score remains unchanged at 50.8 out of 100. This is above the regional average of 40.4. Algeria is ranked eighth out of 31 countries monitored in the Middle East and Africa region in terms of market attractiveness to pharmaceutical investors. Algeria's score is boosted by a large pharmaceutical market and a favourable long-term market development, but dragged down by the country's poor regulatory environment.

Algeria will be certified polio-free by the World Health Organization (WHO) in November 2016, with no cases of poliomyelitis reported in the country since 1996 owing to the nationwide vaccination coverage, which exceeds 90% (AllAfrica). Algeria's hospitals will be gradually digitized to enable better management and adequate care for patients, said in June 2016 the Minister of Health, Population and Hospital Reform, Abdelmalek Boudiaf. According to data reported by Algerian Customs in June 2016, the drug import bill soared by almost 30% to USD606bn over the first four months of 2016 compared to the same period in the previous year. As of May 2016, the products of Algerian pharmaceutical group Saidal will be soon exported to 13 African countries, in accordance with agreements signed by the group with a distributor in the first months of 2016.

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