1. Multi-Stakeholder Collaboration in Support of Local Production of Pharmaceuticals (LPP) Mr. Godfrey Keele, MPharm (UNIDO) HRDC Summit, 29 March 2016, Midrand, RSA

2. Requested Intervention
Vision 2030 for Pharma
The Deliverable
Healthy and productive nation
Security of supply of essential medicines - NHI
High rate of economic growth and job creation
Thriving knowledge economy and R&D
Local pharmaceutical industry that is globally competitive - FDI
Key exporter of medicines esp to the African market
A multi-stakeholder forum with a legal status. The forum should:
Formulate a sector development strategy to address the matters related to public health and trade innovation
Craft a demand driven and evidence based skills development programme
Report back quarterly +

4. Current Situation (March 2016)
Key Challenges:
High incidence of medicine stock outs undermines our collective effort to improve the health of SAns
Limited expansion of pharmaceutical plants despite SA’s triple burden of disease & incentives (dti)
Erosion of manufacturing capacity and job losses – 37 plants closed down with 6,500 jobs being lost
Shortage of highly skilled professionals
Pharma is a 5th leading driver of trade deficit in SA
Only 35% of our pharmaceutical consumption is produced locally
Considerable threat to the security of supply of medicines in SA

5. Agenda 2030

6. Stakeholders Present at the Forum
 Government
 Statutory
Authorities
 Associations
 SETAs
PHARMISA
 UN
Agency
 Academia
Universities
(X10)

7. Legislative Framework for LPP
National Drug Policy
Industrial Policy Action Plan
Objectives
Improve access to drugs
Lower the cost of drugs
Promote LPP
Medicines Act
Sect 22C(1)(b) – licensing and quality standards (PIC/S)
Sect 22G – transparent pricing system
Sect 22F – mandatory generic substitution
Manufacturing Investment Programme
Manufacturing Competitiveness Enhancement Programme
Special Economic Zones
12I Tax Incentive Allowance
National Industrial Participation Programme

8. Policy Analysis of the BRICS Bloc
Country
Price Controls
Local Content
PIC/S
Import
Duty
Yes No

9. Business Case for LPP 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

10. LPP and UN Agencies

11. “AU’s Pharmaceutical Manufacturing Plan For Africa – Business Plan”
Ethiopia – concluded a Sector Strategy in 2015
Kenya – concluded a GMP Roadmap in 2014

12. “In the future, regional and global power and national stability will be determined not by who controls arms, but by who controls access to medicines” Michel Sidibe (Executive Director of UNAIDS)