Understanding Egypt's Medication Shortage

Updated 8/25/2024 10:51:00 AM

In March 2024, the Central Bank of Egypt (CBE) floated EGP against USD. Correspondingly, the exchange rates jumped from EGP 30.9 per USD to levels close to EGP 48.

This sharp depreciation severely impacted pharmaceutical production, exacerbated by the mandatory pricing regulations, leading to a shortage of medications in the domestic market.

This factsheet explores the current medication shortage in Egypt, providing an overview of the pharmaceutical industry’s key characteristics as well as its global and regional standing across various dimensions.

Egypt’s pharmaceutical industry heavily relies on imported raw materials and inputs, sourcing around 95% of both active and inactive ingredients from abroad.
The rise in exchange rates, combined with rigid pricing systems in the domestic market, forced many factories to halt their production.
Lower production at many factories led to severe shortages of chronic and non-chronic disease medications, with approximately 800 medications unavailable in the market.
To address the issue, an agreement was reached between the cabinet, the Egyptian Drug Authority (EDA), and pharmaceutical producers. This agreement allows price adjustments, ranging from 15% to 40%, for 20% of medications over three months.
Generally, Egypt is 91% self-sufficient in terms of medicine production, boasting one of the largest sectors in Africa.
Pharmaceutical sales in Egypt were estimated at $4.8 billion in the first quarter (Q1) of 2024, placing the country second in the Middle East and Africa (MEA) region after Saudi Arabia. Egypt also has the fastest-growing pharmaceutical market in the region, with an annual growth rate of 32.4%.
In terms of quantity, Egypt came on top of the MEA region with sales of 3.7 billion units in Q1 2024.
In 2023, 175 companies were operating in the local market. In Q1 2024, the top 10 corporations accounted for 44.2% of volume sales, with Pharco leading the market at 7.8% and Sanofi emerging as the fastest-growing corporation.
The sales of local companies in Egypt grew by 28.4%, while multinational companies experienced a growth rate of 37.2%.
In 2023, Egypt’s medicine exports reached $262.3 million, ranking 53^rd Egypt exported to more than 80 markets all over the world.
Saudi Arabia was the top importer of medicines from Egypt with around $51 million in imports, followed by Yemen and Iraq with $41 million and $25 million, respectively.
Due to its high dependence on imported pharmaceuticals, Egypt’s imports hit $3.3 billion in 2023, with Switzerland, Germany, and the USA as the main market suppliers.