Zimbabwe’s pharmaceutical industry remains unattractive to investors due to heightened political and economic risks, an international research firm has said.
Business Reporter
In its Zimbabwe Pharmaceuticals & Healthcare report for the fourth quarter of last year, Business Monitor International (BMI) said while the need for medicines is vast, the majority of demand continues to be met through foreign donations, indicating the dire situation in the country.
BMI is a leading, independent provider of proprietary data, analysis, ratings, rankings and forecasts covering 175 countries and 22 industry sectors.
It seeks to integrate country risk and financial markets analysis with industry research, to best inform decision-making at the highest level in multinational companies, financial institutions, multinationals and government.
“While the need for medicines (in Zimbabwe) is vast, the majority of demand continues to be met through foreign donations, indicating the dire situation in the country,” the company said in its 2012 fourth quarter report on the sector.
“At the same time, the domestic industry continues to struggle, without much hope for government finances or credit extensions, which will continue to exacerbate the already massive problems with regard to access to medicines.
“Zimbabwe will remain one of the least attractive pharmaceutical and healthcare markets regionally and globally (currently ranking 93rd out of 95 countries surveyed) on account of the elevated political, economic and social risks, as well as the lack of finances for adequate healthcare provision and capacity utilisation.”
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BMI said regardless of the outcome of the upcoming general elections, it remained pessimistic about the short- to medium-term development of Zimbabwe’s pharmaceutical market.
In BMI’s rewards ratings (RRRs) table for period under review the country’s score remained unchanged 30,1 leaving the country ranked 28th of the 30 markets surveyed in the Middle East and Africa.
“Zimbabwe has moved a step closer to legislative and presidential elections after the finalised version of a draft constitution was released by a constitutional drafting committee,” the UK-based think tank noted.
“Although this is a positive step, there are still risks that President (Robert) Mugabe’s Zanu PF party forces early elections.
“The threat of violence and a refusal by security chiefs to accept anything but a Zanu PF victory at a vote, regardless of when it takes place, also remains.”
