South African pharma market set to grow to $7 billion in 2018

South Africa's pharmaceutical market is one of the most attractive markets in Africa. Some of the main reasons for its rapid growth are the availability of cost-effective and skilled labor, high quality infrastructure, and the introduction of the South African Health Products Regulatory Authority (SAHPRA), according to a new report from GBI Research.

The new regulatory body will have a wide range of responsibilities, including helping to remove the backlog of drug applications and speed up the registration process from five years at present to one year.

Most of the local drug manufacturers and distributors are in the hands of big international pharmaceutical firms. GBI Research valued the South African pharmaceutical market at $3.8 billion in 2011, and expects it to reach $7 billion in 2018, expanding at a compound annual growth rate (CAGR) of 9.2%.