1. Policy Incentives to Catalyze Quick Wins
Dr. Mothobi Godfrey Keele

2. African Pharma at a Glance – Macro Drivers

3. Blueprint for African Pharma

4. 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

5. 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

6. 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

7. 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

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