CAPE-TOWN,
South-Africa, July 29, 2013 - Over the past decade the global
life sciences sector has experienced healthy growth. The world market for
pharmaceuticals, for example, has doubled within a decade, reaching a value of
about USD 1 trillion, and is expected to grow by another 3 to 6 per cent per annum
until 2016.
This huge
demand, has been particularly strong in the mature markets of Europe and North
America, which has now infiltrated the more dynamic emerging markets including
China, Russia and India, but is particularly relevant in Africa, which is
positioned as the next frontier for the healthcare sector.
This is
according to Sumesh Rahavendra, Head of Marketing for DHL Express Sub-Saharan
Africa (http://www.dhl.com), who says that Africa has seen tremendous growth in
the life sciences and healthcare sector over the past years, as well as
investment into the development of healthcare, especially in the logistics
sector, as a result of this shift.
“Companies are
increasingly turning to Africa due to the opportunities that the continent
offers as it is one of the few locations that can still obtain double digit
economic growth. The life sciences logistics model in Africa is therefore
changing drastically as, in the last two and a half years, we have seen major
growth in hubs like Kenya, servicing East Africa, and South Africa, which plays
a key role for the Southern African Development Community (SADC) countries; in
addition to direct shipments into specific countries, as the capabilities grow
within the region.”
Referencing
DHL’s recent report on key logistics developments in the healthcare sector for
2020 and beyond, entitled Key Logistics Trends in Life Sciences 2020+,
Rahavendra says that this growth in Africa can be attributed to Sub Saharan
Africa’s increased life expectancy, rate of urbanisation and rise of the middle
class. “While Sub-Saharan Africa comprises of 12% of the global population, the
region comprises of 24% of the global healthcare burden.”
Rahavendra says
that another contributor to this shift is ecommerce growth in the
pharmaceutical industry.
“The healthcare sector will ultimately follow the
technology sector as where there is communication, there is ability. Therefore,
as technology capabilities roll out in the country, so will healthcare
capabilities.
“With
technology continuingly evolving, there is talk that consumers will likely soon
be able to self-medicate and order over the counter drugs via their cellphones
or the internet. These sorts of developments have the potential to drastically
change both the healthcare, and logistics, sector.”
However with
the current shift in the sector, Rahavendra explains that there are key
challenges that need to be met based on the current developments. “Increasing
differentiation of supply chains and the need for companies to keep their
supply chain flexible to adapt to requirements of innovative products is a key
challenge.
“As innovation
in the pharmaceutical industry shifts towards specialties and biotech products,
so does the need for temperature controlled, and monitored, cold chain
transport and storage, historically only required for shipments of vaccines and
blood fractions.”
He says that
due to the combination of increasing regulatory demands, the focus on emerging
markets, and new product requirements, notably around temperature management,
and cost pressures, the life sciences and healthcare sector is accelerating its
emphasis on driving supply chain transformation and differentiation.
“Despite these
hurdles, we are confident that the life sciences and healthcare sector will
continue to flourish in upcoming years due to the on-going investment and
development on the African continent,” concludes Rahavendra. “The future is
bright for Africa, and the healthcare sector will be one of its star
performers.”
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