In Depth: China’s Pharma Pioneers in Africa Dig In for the Long Haul

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[para. 4] This shift is driven by both pressure and opportunity. Domestically, Chinese companies face market saturation and steep price reductions under national procurement policies. Additionally, Western markets have become less reliable due to geopolitical tensions. Africa, with a rapidly expanding population and a healthcare market predicted to reach $259 billion by 2025, offers vast prospects. The continent imports over 90% of its medicines, a vulnerability highlighted during the COVID-19 pandemic, as only 3% of global pharmaceuticals are manufactured locally.

[para. 5][para. 6] The pandemic accelerated these changes, exposing Africa’s dependence on foreign aid and imports. Countries responded by courting manufacturers, and Chinese firms—renowned for their affordable, reliable products—became desirable partners. However, Chinese businesses must navigate significant hurdles, including political instability, bureaucratic inefficiency, insufficient infrastructure, scarce raw materials and skilled labor, and the challenge of securing international regulatory certifications. According to Wang Luo of the Chinese Academy of International Trade and Economic Cooperation, the success of these ventures has implications beyond healthcare, reflecting a larger shift in China’s economic strategy from exports to international investment.

[para. 7][para. 8][para. 9] Companies like Wondfo Biotech are expanding quickly, launching projects across Nigeria, Ivory Coast, Ethiopia, and Zambia, after establishing a diagnostic kit plant in Uganda. Shanghai United Imaging Healthcare has created a “golden triangle” of operations in Egypt, South Africa, and Morocco to penetrate the African market long term. These expansions are not just market-driven, but also a response to squeezed domestic profits and global trade uncertainties. China’s pharmaceutical trade with Africa grew 11.7% year-over-year to $4.7 billion in 2024, with investment diversifying beyond traditional infrastructure to include pharmaceuticals.

[para. 10][para. 11][para. 12] Despite the risks, the potential is enormous. Africa’s population, at 1.4 billion, mirrors China’s, but its medical imaging market is underdeveloped—less than $600 million compared to China’s $7 billion. Fosun Pharma is building the largest antimalarial and antibiotic plant in West Africa, and Walvax Biotechnology is setting up a vaccine production facility in Egypt. African governments, recognizing the need for health security, are welcoming these investments; in Kenya, for example, local manufacturers only meet 70% of essential drug needs and import 90% of specialized products.

[para. 13][para. 14][para. 15][para. 16] However, the path to profitability is riddled with obstacles: regulatory red tape, lack of infrastructure, high investment costs (estimated at three times that of China), expensive and complicated import-dependent supply chains, and steep tariffs on raw materials and building supplies. Skilled labor shortages mean extensive (and costly) staff training is required.

[para. 17][para. 18][para. 19][para. 20][para. 21] The ultimate key to market access is the World Health Organization’s Prequalification (PQ). Only products with PQ status can be procured by UN agencies and funders like The Global Fund. Indian companies hold 65% of WHO PQ certifications for finished drugs, while Chinese companies have just 8%. Securing PQ is lengthy—up to five years for new facilities—and delays entry into the lucrative public sector market.

[para. 22][para. 23][para. 24][para. 25][para. 26] Chinese firms also face entrenched brand loyalty to Western and Indian suppliers. Some, like Edan Instruments, are competing by customizing products for Africa, such as diagnostic analyzers designed to minimize waste and affordable, user-friendly devices to improve care in remote clinics. These innovative, targeted solutions are helping Chinese firms gradually build trust and market share on the continent.