Policy Incentives to Catalyze Quick Wins Dr. Mothobi Godfrey Keele

African Pharma at a Glance – Macro Drivers

Blueprint for African Pharma

Manufacturing and Downstream Industries Key Multipliers Impact on the Economy R1 invested in production = R 0.35 in Fiscal Revenue = R 1.13 in Value Created R1 M invested in production = 3 sustained jobs Knowledge economy Skills development Job creation Broader tax base Reference: Deloitte 2016

Policy Incentives Accept higher drug prices from domestic manufacturers Impose import duties on drugs that compete with products made by domestic manufacturers Offer direct subsidies or tax breaks to manufacturers for making necessary investments Provide incentives for investments in quality, such as higher prices allowed for drugs from GMP facilities

Policy Incentives Custom duty exemptions Y% custom duty exemptions on all capital goods (e.g. manufacturing plant, equipment and construction materials and machinery) Z% custom duty exemptions of the total value for imported spare parts Tax exemption: companies that export significant quantities of their products are exempted from tax for a period of time Product registration: expedited medicine registrations for local producers

Policy Incentives Use of Procurement as a lever to entrench Local Production of Pharmaceuticals: Provisions for an advance payment of up to x% of the value of orders awarded in a public tender. This allows investment into the necessary resources such as purchase of equipment or recruitment of required personnel to avoid disruptions to continuous supply in the value chain Role of government in the provision of technical and consultancy services to help local companies comply with international quality standards

International Instruments to Promote Access WHO PQP – Number of Companies in Africa GAVI – Procurement Spend from Africa MPP – Uptake in Africa