The tree lives continuously for centuries, sustaining entire communities through its nutritious fruit and the ecosystems it supports.

Large companies that have emerged in Africa’s transformational economic boom, are regarded as playing a similar role in their local economies, contributing disproportionately to their nations’ employment, productivity, innovation, and tax revenues.

Just as the baobab tree creates conditions for smaller plants to thrive, large companies have created new networks of suppliers, distributors, and service providers that are driving broad-based economic development across the continent.

Africa now has around 400 companies with annual revenues north of $1billion, but it needs more. In sectors like medical technology, biotech and pharmaceuticals, the gap between what exists and what is needed is particularly acute.

Opportunities to do business there have never been greater but for many Western companies, misperceptions about its size and an enduring perception of the continent as a charity case contribute to a costly reluctance.

Companies that fail to recognise this transformation risk not only missing one of the 21st century’s great growth opportunities but also ceding the field to more agile competitors.

The demographic and epidemiological shift

Africa’s population has surpassed 1.5billion and is projected to reach 2.5billion by 2050, increasing the continent’s share of the global population from 10% in 1960 to nearly 28% by mid-century.

By 2030, half of the continent’s population will live in urban areas. This urban concentration creates attractive markets for sophisticated goods and services, including advanced healthcare.

By 2030, the continent’s healthcare market alone is estimated to reach $259billion – a figure that should command the attention of any global health company. Yet Western executives consistently underestimate this potential.

Arguably, the most significant transformation affecting African healthcare is the dramatic epidemiological shift toward non-communicable diseases (NCDs).

Diabetes, cardiovascular disease, cancer, and chronic respiratory conditions are rapidly rising, driven by urbanisation, changing diets, and increased life expectancy.

The productivity losses from NCDs in Africa now exceed $1trillion, creating an urgent mandate for both governments and the private sector to invest in long-term management rather than emergency interventions.

Consider diabetes alone, the International Diabetes Federation estimates that the number of Africans living with diabetes will rise from 19million in 2019, to 47million by 2045, a 150% increase.

Managing this epidemic requires insulin, glucose monitoring systems, diagnostic equipment, patient education platforms, and specialised healthcare providers.

These are not ‘charity’ products, they are sophisticated medical technologies for which millions of Africans are willing and increasingly able to pay.

Diagnostics will play a central role in this transition. Managing chronic diseases such as diabetes, cardiovascular disease and cancer requires large-scale deployment of laboratory testing, point-of-care diagnostics and digital monitoring systems. For medical technology companies, this represents not only a clinical necessity but a major commercial opportunity.

The response from Western companies has been lukewarm at best. As the United Nations Industrial Development Organisation (UNIDO) pointed out in its comprehensive guidelines on pharmaceutical manufacturing in Africa, the continent currently imports approximately 95% of its pharmaceutical products.

This dependency persists despite 10 countries alone, Egypt, Ghana, Kenya, Morocco, Nigeria, Rwanda, Senegal, South Africa, Tanzania, and Tunisia, representing an estimated 75% of the total African pharmaceutical market.

The manufacturing paradox

The Covid pandemic laid bare the dangers of Africa’s pharmaceutical dependency. As wealthy nations hoarded vaccines and restricted exports of essential medicines, African countries found themselves vulnerable in ways that were both medically dangerous and politically untenable.

The response has been a continent-wide push for local pharmaceutical manufacturing, supported by initiatives like the African Vaccine Manufacturing Accelerator (AVMA), launched by Gavi, which is incentivising private investment in local production capacity.

The targets are ambitious. The Partnership for African Vaccine Manufacturing aims for 60% of local demand to be produced on the continent by 2040 – up from less than 1% today.

The African pharmaceutical market is projected to grow at compound annual growth rate (CAGR) of between six and eight per cent by 2029.

Biotech startups raised over $500million in 2023 alone, signalling that the sector is shifting from a niche to an investment frontier.

Several countries are emerging as manufacturing hubs. Senegal, under its ‘Emerging Senegal Plan’, aims to domestically manufacture 50% of its pharmaceutical products by 2035.

 It is one of six African Union member states (along with Egypt, Kenya, Nigeria, South Africa, and Tunisia) receiving mRNA technology for local vaccine production through the WHO technology transfer hub programme.

The Institut Pasteur de Dakar, in partnership with the Mastercard Foundation and with €75million in financing from the European Investment Bank, is constructing a vaccine manufacturing facility expected to produce up to 300million doses annually.

South Africa, Egypt, Kenya, Nigeria, and Morocco are similarly positioning themselves as regional pharmaceutical hubs, with Saudi Arabia and the UAE in the broader region showing significant investment through initiatives like Vision 2030.

Fifty-Four Markets, Not One

One of the biggest mistakes Western companies make is to treat Africa as a single market. The continent comprises 54 countries with vastly different regulatory regimes, income levels, disease profiles, and healthcare infrastructures.

A strategy that works in South Africa, with its sophisticated private healthcare system and regulatory authority, would not work in Nigeria, where the market is larger but infrastructure more challenging and distribution more complex.

Western companies seeking investment opportunities must be prepared to navigate an array of different national regulatory authorities, each with its own requirements, timelines, and standards.

As of December 2024, only eight African national regulatory authorities, Egypt, Ghana, Nigeria, Rwanda, Senegal, South Africa, Tanzania, and Zimbabwe, achieved WHO maturity level 3, indicating a stable, well-functioning regulatory system. The remainder are at earlier stages of development, with varying capacity and resources.

This complexity is not a reason to avoid Africa, but rather to approach it strategically. The most successful companies will be those that identify priority markets based on clear criteria, regulatory maturity, market size, infrastructure quality, and strategic position within regional economic communities.

The business case

Another significant barrier to Western pharmaceutical investment in Africa is what might be called the ‘charity mindset’ – an assumption that African healthcare is primarily a matter of humanitarian aid rather than commercial opportunity.

This manifests in product strategies focused on ‘essential’ medicines, rather than innovative therapies, in pricing models based on ability to pay rather than value delivered, and in distribution approaches that rely on donor programmes rather than commercial channels.

Such an approach does a disservice to both African patients and Western companies. African patients deserve access to the same innovative medicines and technologies available elsewhere; they are not well-served by a system that treats them as second-class consumers.

The companies that succeed in Africa over the next two decades will not be those that treat the continent as a philanthropic afterthought but rather firms that approach it as one of the last major growth frontiers in global healthcare.

As African life-science sectors expand, one constraint increasingly cited by investors is access to experienced leadership teams capable of scaling manufacturing, navigating regulatory frameworks and building international commercial partnerships.

The choice for Western life sciences companies is straightforward – engage seriously with Africa’s emerging markets today, or watch others build the relationships, manufacturing capacity and regulatory expertise that will define the industry tomorrow.

*Ivor Campbell is chief executive of Snedden Campbell, a specialist recruitment consultant for the global medical technology industry.

Robotic-enabled automation, enhanced supply chain digitalization, and additive manufacturing stand at the forefront of the trends reshaping international production, collectively driving efficiency, agility, and innovation across industries.

Additive Manufacturing

Additive manufacturing (AM), also known as 3D printing is revolutionizing the way products are designed, prototyped, and manufactured. It offers new possibilities for efficiency, customization, and sustainability in manufacturing processes.

AM has provided significant opportunities for the implementation of distributed manufacturing, which is also known as distributed production and local manufacturing. It is interesting to see new and developing applications of AM.

Among them are the 3D printing of medicine, living tissue, fashion designs, and furniture. They show the impressive breadth and promise of AM beyond industrial applications.

Advancements in multi-material (3D printing) will enable more functional and aesthetic uses across industries.

3D printing experiencing strong growth that is unlikely to abate anytime soon. Not only is this production method booming in terms of numbers, but also in terms of trust in the technology – which has proven to be quite reliable.

Robotic-enabled automation

Robotic-enabled automation is revolutionizing international production by increasing efficiency, reducing costs, enhancing flexibility, and improving safety.

This trend involves the use of advanced robots and automated systems to perform tasks traditionally done by human workers.

As new developments in robotics emerge, they are ushering in a new era of automation that is altering industries as well as our everyday lives.

Robots are becoming increasingly important in a variety of fields, including healthcare, agriculture, and transportation among others.

Enhanced supply chain digitalization

Supply chain digitalization refers to the process of integrating digital technologies and solutions into various aspects of the supply chain from sourcing raw materials to delivering the final product to customers.

This trend is reshaping international production by leveraging technology to streamline operations, efficiency and improve collaboration across global networks.

Evolving capabilities across generative AI, data analytics, machine learning, internet of things (IoT), blockchain etc. are reshaping the supply chain world.

Embracing the future

To thrive in this dynamic landscape, companies must cultivate a culture of innovation and continuous improvement leveraging differentiation and value creation.

The UNIDO Industrial Development Report 2020 highlights the economic benefit of adopting advanced manufacturing technologies, including enhanced productivity and improved access to international market and value chains.

[Featured Photo by Kateryna Babaieva | Pexel]

The Writer:

He made this known to our correspondent in an exclusive interview on Sunday.

Similarly, the United Nation Organization (UNO), report indicated that of the 2.5 million plastic waste annually generated by Nigeria, it was able to recycle less than 12%, while the United Nations Industrial Development Organization (UNIDO), revealed that plastic consumption in Nigeria jumped by 116.26% percent within a period of 5 years to 1.25 million tons.

Reacting to the twin report of the United Nation Organizations  (UNO),  and the United Nations Industrial Development Organization (UNIDO), Chidiebere said:

“The report  brought to light a very alarming fact about Nigeria’s waste management system. This is a massive problem because it means that there are huge costs involved with dealing with all this rubbish; not just financial but also hidden ones such as pollution and health hazards among others.

“In addition to being an economic burden,  these risks can have far-reaching effects on societies too, they impact climate change through things like emissions from landfill sites etcetera.”

Earlier, Jean Bakole, UNIDO’s Country representative said, Nigeria being the most populated nation in this part of the world, with the largest Gross Domestic Product (GDP), the nation’s plastic waste problem is on the increase.

Bakole said based on the increase consumption from 578,000 tonnes of plastics in 2007 to about 1,250,000 tonnes today.

Therefore, the per capital plastic consumption has grown by 5% annually from 4kg to 6.5kg. It is estimated that each citizen would  consume about 7kg of plastic per year.

Chidiebere, pegged the tripartite problem of waste management in Nigeria around; Proper education, Poor Funding and roles of waste pickers.

He noted that “the Pickers work on waste collection by waste pickers is often unrecognized because they are considered to be among the neglected few in the community. The nature of their jobs involves a lot of physical strength and poses many hazards, but still lacks any form of official recognition.

“There is no doubt that without them a lot could go wrong or be left undone especially considering this fact, despite being vital players in waste collection, awareness is not created about these people who remain invisible at that level nor supported enough”

More than a phrase, “trash-as-cash” should be seen as a change in attitude that can fundamentally alter our perspective.

‘If we think of the term recyclable in Naira signs, this can create a virtuous cycle with citizens, garbage collectors and corporations. Besides saving money by cutting waste disposal fees recycling also brings in revenue through selling reusable materials.

He also noted that,

“There is the education gap,  translating into low or zero public knowledge concerning correct handling of wastes.  He thus advised “policy makers to seek ways through which they will ensure that all citizens are well enlightened about solid management practices such as: recycling among others. Because lack thereof has been termed as second ignorance towards environmental conservation after illiteracy itself.

He charges state government to prioritize putting more money into waste management funding. “state governments need to prioritize funding for these two areas if we want them closed at all levels otherwise they will always exist like it does now since every sector needs money.

This can only happen when different tiers of government put into consideration financial matters relating with investment in infrastructure development especially those related to technology advancement within our country as well capacity building for sustainability on waste management systems generally but not limited only here.”

Over the years, the mismanagement of plastic waste by Nigerians was not only contaminating the ecosystem, but was also being released into the marine environment, thereby polluting it and threatening biodiversity and negatively impacting the blue economy. Mismanaged Plastic and ineffective waste management is also a source of greenhouse gas (GHG) emissions.

Mr. Adekunle Olusile, the deputy head, UNIDO Nigeria Office, who led a delegation to visit the Management of NASENI on Monday, October 11, 2023 in Abuja, sought amongst others to facilitate German companies and research institutions’ collaborations with the Agency to reduce energy waste and support the present government’s food production agenda.

Mr. Khalil Suleiman Halilu, the executive vice chairman and chief executive officer (EVC/CEO) of NASENI, represented by the Coordinating Director, Planning and Business Development, Mrs. Nonyem Onyechi in company of top management of the Agency received the team, saying that the management appreciated UNIDO’s Office in Nigeria for extending hands of fellowship to NASENI.

Mrs. Onyechi informed the visitors that NASENI has the mandate of driving Nigeria’s industrial development through technology transfer and domestication, production of capital goods to be ceded to small and medium enterprises (SMEs) and entrepreneurs generally.

In a short presentation on behalf of the Agency, Deputy Director, Engineering Infrastructure, Engr. Emmanuel Ajani, detailed various interventions, programmes and projects of NASENI in the renewable, agricultural and industrial sectors, showcasing to the delegation various technological innovations, products and machineries produced by NASENI.

The UNIDO Investment and Technology Promotion Office (ITPO) Germany Team Lead, Michael Schmidt said the organization mobilizes investments and technologies for sustainable industrial development and supports investors and companies by facilitating technology transfer from Germany to developing countries and economies in transition.

Therefore, the visit to NASENI was more like a fact-finding, so that the areas of collaboration between German companies and the Agency could be established, leading to socio-economic development of the country.

He said the delegation was seeking to support President Bola Ahmed Tinubu government’s food production agenda through food processing and food packaging, reduction of energy waste through biogas production and renewable energy solutions such as solar PV, solar batteries, among others.

The Deputy Head, UNIDO Nigeria Office said he had identified several areas of collaboration from NASENI’s presentation, while adding that “Germany is very strong in renewable sector with several of its companies who are important to such partnerships and are seeking to know Nigeria’s plan to grow its solar PV usage before 2030”.

In order to take the conversations forward geared toward action, NASENI and UNIDO thereafter set up a working group or committee to drive the initiatives and also to bring all prospective partners on board.

Some of the German companies represented at the meeting held at Belanova Apartment and Suites, Abuja yesterday included Bloomhill Agroservices, (B)energy, Wilo Pumps, GEA, EMPO-NI and University Weihenstephan Triesdorf amongst others.