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Articles

Indian health diplomacy in East Africa: Exploring the potential in pharmaceutical manufacturing

Pages 113-135 | Published online: 26 Mar 2019
 

ABSTRACT

Indian engagement in East Africa’s health sector is multifaceted, comprehensive and involves national and subnational actors. It includes exports of low cost generics, building health infrastructure, aid, technical assistance and hosting medical tourists among others. This paper, based on extensive fieldwork conducted with multiple stakeholders in Kenya and Ethiopia, provides an overview of the various components of India’s co-operation in the East African health sector and identifies pharmaceutical manufacturing as a space for Indian actors to leverage their strengths. It focuses on two case studies of manufacturers: a third-generation company in Kenya owned by members of the Indian diaspora, and a newly formed subsidiary of an Indian corporation in Ethiopia. These case studies inform the larger debate on India’s health diplomacy on the continent and the myriad ways in which the Indian state as well as corporates can enhance existing co-operation.

Acknowledgement

The author would like to acknowledge the contribution of the Sino Africa Centre of Excellence (SACE), Nairobi for their support during the field trip in Kenya and Ethiopia in September 2017. The author also thanks managers at Cosmos, Ltd & Cadila Pharmaceuticals (Ethiopia) PLC for their time and patience in answering questions. Additionally, the contribution of members of government and industry interviewed anonymously, is immense and is deeply valued. Support provided by Mr. Sumanta Chowdhury, pharmaceutical consultant, during the course of this research – especially for access to his extensive network in Mumbai, Kenya and Ethiopia – is deeply appreciated. Assistance provided by Ms. Sunaina Bose, IIT Madras in editing and referencing the paper is also gratefully acknowledged.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes on contributor

Veda Vaidyanathan is a research associate at the Institute of Chinese Studies, New Delhi. She completed her PhD from the Centre for African Studies at the University of Mumbai on the resource diplomacy strategies of India and China in Africa. She was initially a doctoral fellow of the Indian Council of Social Science Research and in 2014 received the Institute of Chinese Studies-Harvard Yenching Institute (ICS-HYI) China–India studies fellowship. From 2015–2016 she was a senior visiting fellow at the Centre for African Studies, School of International Studies, Peking University, China and was a visiting fellow at the Harvard-Yenching Institute in Harvard University the following year. She has conducted extensive fieldwork interviewing various stakeholders in India, China, Tanzania, Kenya, Ethiopia, the US and the UK. Her research currently focuses on the interactions of India, China and other emerging powers with countries in Africa.

Notes

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2 WHO (World Health Organization), Oslo Ministerial Declaration-global Health: A Pressing Foreign Policy Issue of Our Time, 2 April 2007, doi:10.1016/S0140-6736(07)60498-X, <http://www.who.int/trade/events/Oslo_Ministerial_Declaration.pdf>.

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6 UCSF Global Health Sciences, ‘GHS initiative in health diplomacy’, accessed 3 May 2018, <http://globalhealthsciences.ucsf.edu/programs/Diplomacy.aspx>.

7 Ibid.

8 Feldbaum H et al., ‘Global health and national security: The need for critical engagement’, Medicine, Conflict and Survival, 22, 2006, pp. 192–8.

9 Panchsheel or the Five Principles of Peaceful Co-existence signed on April 29 1954 between China and India based on the following principles: (i) Mutual respect for each other’s territorial integrity and sovereignty (ii) Mutual non-aggression (iii) Mutual non-interference (iv) Equality and mutual benefit and (v) Peaceful co-existence. It was incorporated into the Ten Principles of International Peace and Cooperation in the Declaration issued by the April 1955 Bandung Conference of 29 Afro-Asian countries. Source: Ministry of External Affairs, Government of India, accessed 13 December 2018, <http://www.mea.gov.in/Uploads/PublicationDocs/191_panchsheel.pdf>.

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42 ‘Pharmacovigilance (PV) is defined as the science and activities relating to the detection, assessment, understanding and prevention of adverse effects or any other drug-related problem.’ (World Health Organization, ‘Pharmacovigilance’, <https://www.who.int/medicines/areas/quality_safety/safety_efficacy/pharmvigi/en/>).

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45 ‘Good Manufacturing Practice (GMP) is a system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimise the risks involved in any pharmaceutical production that cannot be eliminated through testing the final product’ – ISPE (International Society for Pharmaceutical Engineers).

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47 Government of Ethiopia, ‘National strategy and plan of action for pharmaceutical manufacturing development in Ethiopia (2015–2025)’, Ministry of Health and Ministry of Industry, 2015, accessed 1 September 2018, <http://www.who.int/phi/publications/Ethiopia_strategy_local_poduction.pdf?ua=1>.

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50 Government of Ethiopia, ‘National strategy and plan of action for pharmaceutical manufacturing development in Ethiopia (2015–2025)’, Ministry of Health and Ministry of Industry, 2015, accessed 1 September 2018, <http://www.who.int/phi/publications/Ethiopia_strategy_local_poduction.pdf?ua=1>.

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54 Personal Interview, Pharmaceutical Importers, Addis Ababa & Nairobi, September 2017.

55 Anderson M, ‘NGO’s: Blessing or curse?’, The Africa Report, 29 November 2017, accessed on 12 December 2018, <http://www.theafricareport.com/East-Horn-Africa/ngos-blessing-or-curse.html>.

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57 Refer to Balarajan Y et al., ‘Health care and equity in India’, The Lancet, 377, 9764, pp. 505–15, accessed 17 December 2018, <https://doi.org/10.1016/S0140-6736(10)61894-6> and <https://health.economictimes.indiatimes.com/news/industry/indias-unique-healthcare-challenges-need-collaborative-approach-nathealth/62223590>.

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62 The Economic Times, ‘80% drugs to combat AIDS supplied by India: JP Nadda’, 9 June 2016, accessed 1 May 2018, <https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/80-drugs-to-combat-aids-supplied-by-india-jp-nadda/articleshow/52671827.cms>.

63 IBEF (India Brand Equity Foundation), Indian Pharmaceuticals Industry Report, September 2018, accessed 1 October 2018, <https://www.ibef.org/industry/pharmaceutical-india.aspx>.

64 The Associated Chambers of Commerce & Industry of India (ASSOCHAM), ‘India will be one of the top 5 global pharma hubs by 2020 through its PPP model: Study’, 29 August 2016, <http://www.assocham.org/newsdetail.php?id=5886>.

65 Mackintosh M et al., (eds), Making Medicines in Africa: The Political Economy of Industrializing for Local Health. UK: Palgrave Macmillan, 2016, pp. 1–4.

66 Ibid. pp. 7–24.

67 Munjuru E, ‘Mobilizing investment, technology and partnerships opportunities for Africa’s pharmaceutical industry’, March 2018, accessed 17 December 2018, <https://www.unido.org/sites/default/files/files/2018-03/Emmanuel%20Mujuru_FAPMA_What%20are%20African%20Companies%20looking%20for_Africa%20last%20frontier01032018_0.pdf>.

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69 Ibid.

70 Frost & Sullivan ‘African pharmaceutical market, forecast to 2020: Assessing market potential with a focus on Kenya and Nigeria’, 21 December 2016, accessed 1 September 2018, <http://www.frost.com/sublib/display-report.do?id=MC24-01-00-00-00>.

71 Mackintosh M et al., ‘Local production of pharmaceuticals and health system strengthening in Africa’, Evidence Brief, Federal Ministry for Economic Cooperation and Development (BMZ), July 2017, accessed 1 September 2018, <https://health.bmz.de/ghpc/evidence_briefs/local_production_pharmaceuticals_health_system_strengthening_africa/EB_Pharma.pdf>.

72 Refer to: ‘Pharmaceutical Manufacturing Plan for Africa’, African Union, United Nations Industrial Development Organization (UNIDO), 2012, ‘Strengthening Pharmaceutical Innovation in Africa’, Council on Health Research for Development (COHRED), New Partnership for Africa’s Development (NEPAD), 2010 and ‘Revitalizing Africa’s Pharmaceutical Industry’, African Development Bank Group (AfDB) 2014, accessed 17 December 2018, <https://www.afdb.org/en/news-and-events/revitalizing-africas-pharmaceutical-industry-13289/>.

73 Simonetti R et al., ‘Pharmaceuticals in Kenya: The evolution of technological capabilities’, accessed 1 October 2018, <https://link.springer.com/content/pdf/10.1007%2F978-1-137-54647-0_3.pdf>.

74 East Africa Community, ‘East Africa community regional pharmaceutical manufacturing plan of action (2012–2016), accessed 21 October 2018, <http://eacgermany.org/wp-content/uploads/2014/10/EACRPMPOA.pdf>.

75 Ministry of Medical Services-Kenya & WHO, Kenya, Pharmaceutical Country Profile, November 2010, accessed 1 October 2018, <http://www.who.int/medicines/areas/coordination/kenya_pharmaceuticalprofile_december2010.pdf>.

76 The World Bank, ‘Ethiopia economic update: Reform imperatives for Ethiopia’s services sector’, 11 July 2018, accessed 1 October 2018, <http://www.worldbank.org/en/country/ethiopia/overview>.

77 Taye EM, ‘Pharmaceuticals: Pills for the Ethiopian populace’, February 2016, accessed 17 December 2018, <http://www.theafricareport.com/East-Horn-Africa/pharmaceuticals-pills-for-the-ethiopian-populace.html>.

78 Government of Ethiopia, ‘National strategy and plan of action for pharmaceutical manufacturing development in Ethiopia (2015–2025)’, Ministry of Health and Ministry of Industry, 2015, accessed 1 September 2018, <http://www.who.int/phi/publications/Ethiopia_strategy_local_poduction.pdf?ua=1>.

79 Ibid.

80 Personal Interview, Officials at FMHACA, Ethiopia, September 2017.

81 Personal Interview, Mr. Alakh Patel, Cosmos Ltd (Kenya) & Members of Management in Cadila Pharmaceuticals Ethiopia Ltd. (CPEL, Ethiopia) in September 2017.

82 Cosmos Ltd., Company Profile, accessed 15 April 2018, <https://drive.google.com/file/d/0BygN2JyBH4RlODZjTE8tZEVpSXc/view>.

83 Business Line, ‘Cadila Pharma’s Ethiopian JV bags WHO certificate’, 8 August 2011, <https://www.thehindubusinessline.com/companies/cadila-pharmarsquos-ethiopian-jv-bags-who-certificate/article23057240.ece>.

84 Personal Interview, Plant Manager, CPEL, Ethiopia, September 2017.

85 Personal Interview, Members of Management CPEL, Ethiopia, September 2017.

86 Sisay B, ‘Chinese firm builds-up pharma with $85m’, Addis Fortune, 19 May 2018, accessed 1 October 2018, <https://addisfortune.net/articles/chinese-firm-builds-up-pharma-with-85m/>.

87 Geberegziabher Y, ‘Chinese pharmaceutical manufacturer lodges in Hagerie-Mariam’, Addis Fortune, 7 December 2017, <https://addisfortune.net/articles/chinese-pharmaceutical-manufacturer-lodges-in-hagerie-mariam/>.

88 Personal Interview, Mr. Alakh Patel, Cosmos Ltd (Kenya), September 2017.

89 Personal Interview, Plant Manager, CPEL, Ethiopia, September 2017.

91 Ibid.

92 Bate R et al., ‘Poor quality drugs and global trade: A pilot study’, NBER Working paper No. 20469, The National Bureau of Economic Research, 2014, accessed on 20 December 2018, <https://www.nber.org/papers/w20469>.

93 An example was provided of Indometacin capsules in which API tested at 40%.

94 (Indometacin capsules tested at 40%), Personal Interview, Anonymous, September 2017.

95 Personal Interview, Members of Management, CPEL, Ethiopia, September 2017.

96 Ibid.

97 ‘Ethiopia to commission Chinese built pharmaceutical industrial park in march 2018’, Xinhua, 25 December 2017, accessed on 10 December 2018 <http://www.xinhuanet.com/english/2017-12/25/c_136849330.htm>.

98 Personal Interview, Members of Management, CPEL, Ethiopia, September 2017.

99 ‘Investing in Ethiopia: The future pharmaceutical hub of Africa’, Ethiopian Investment Commission, March 2018, accessed on 17 December 2018, <https://www.unido.org/sites/default/files/files/2018-03/Aida%20Bayissa%2C%20Ethiopian%20Investment%20Commission_01032018%20Bonn.pdf>.

100 Personal Interview, Officials at FMHACA, Ethiopia, September 2017.

101 Personal Interview, Mrs. Zaf Gebretsadik, CEO Zaf Pharmaceuticals Plc. and Executive Director Sino-Ethiopia Associates Plc., September 2017.

102 Personal Interview, importers, wholesalers, distributors and industry personnel in Ethiopia and Kenya, September 2017.

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