Barriers of establishing profitable and sustainable pharmaceutical manufacturing firms in Botswana

Abstract

Africa is believed to bear a very heavy burden of disease accounting for 25% of the world’s disease statistics (Owoeye, 2014) . Modern curative care is believed to depend on the availability of medicines (World Health Organization (WHO), 2013). The African continent (including Botswana) is however dependent on pharmaceutical imports. Shortage of medicines has resuscitated the discussion on the feasibility of local production (UNDP, 2013). The few firms that attempt pharmaceutical manufacturing in Africa however, continue to close. Factors that contribute to the closure of these firms have been investigated in some African countries, there is, however, a call to conduct feasibility studies and establish why pharmaceutical manufacturing is failing in Botswana (Mhamba & Mbirigenda, 2010; Naude & Luiz, 2013; UNDP, 2016b). The purpose of this study was to establish country specific reasons that contributed to the failure of pharmaceutical manufacturing firms in Botswana. An exploratory, cross sectional study was conducted amongst firms that operated between 1990 and 2015. Two (2) employees from management from each firm were purposely sampled. Respondents completed a questionnaire which was followed by a face to face interview. Employees from four (4) of the six (6) firms responded. The data was analysed using tables, graphs and bar charts using excel to establish patterns, frequencies, and averages. Factors that presented as major challenges were poor access to markets, lack of finances, inadequate infrastructure and unskilled labour. The market was characterized by pharmaceutical registration delays, poor procurement policies and an unsupportive business environment. The use of expatriate skilled labour was still rampant and local professionals had inadequate skills to operate successful firms. Public Private Partnerships have not been successful; however, financial institutions seem to be risk averse regarding investment in the pharmaceutical industry. This research calls for a review of policies to support profitable pharmaceutical manufacturing.