China’s ambitious plans to expand its pharmaceutical industry along the “Health Silk Road” have taken a significant step forward with the announcement of the first phase completion of Shanghai Fosun Pharmaceutical’s manufacturing plant in the Ivory Coast by the end of this year. The plant, located in Abidjan, the largest city in the Ivory Coast, is expected to produce 5 billion tablets of anti-malarial drugs and antibiotics annually, catering to the immense demand for these medicines in Africa.
The “Health Silk Road” concept, which aims to promote pharmaceutical production and medical equipment industry in Africa, was first introduced by Chinese President Xi Jinping during the Forum on China-Africa Cooperation (FOCAC) summit last month. Xi pledged to support pharmaceutical production and access to active pharmaceutical ingredients in Africa through co-investment by Chinese and African private sector players.
China’s push into Africa’s pharmaceutical market is seen as a strategic move to tap into the continent’s growing demand for medicines, particularly anti-malarial drugs. The “Silk Road” trade route, which flourished for over 1,500 years, has been revived by Xi’s Belt and Road Initiative (BRI), with the “Health Silk Road” being a key component of this initiative.
The Ivory Coast plant is the first major project under the “Health Silk Road” initiative, with Zambia and Nigeria also signing deals with Chinese companies to build pharmaceutical plants in their countries. Zambia has partnered with Jijia International Medical Technology Corp. to build Africa’s first cholera vaccine factory, while Nigeria is working with China to build a pharmaceutical plant in the Lekki free-trade zone of Lagos, focusing on HIV medication production.
The departure of Western pharmaceutical giants GlaxoSmithKline (GSK) and Sanofi from Nigeria due to operational difficulties has created a gap in the market, which China is now filling. George Washington University China-Africa specialist David Shinn attributes China’s growing presence in Africa’s pharmaceutical market to overcapacity in the Chinese industry, driven by population decline and the need to find new markets.
Shinn notes that Africa is the fastest-growing continent in the world, making it an attractive destination for Chinese pharmaceutical companies looking to expand their production capacity. Even with high costs and production difficulties, Chinese firms may be able to turn a better profit in Africa due to the thin margins in China.
The African Centers for Disease Control (Africa CDC) has welcomed China’s health investments in Africa, with senior technical officer Joseph Wangendo praising China’s commitment to Africa’s health security. Wangendo highlighted the importance of China’s technical support and resources in helping Africa meet challenges such as the mpox outbreak and the Marburg virus outbreak in Rwanda.
Other African leaders have also acknowledged China’s significant contributions to healthcare in Africa, including the construction of hospitals and donation of medical equipment to countries like Ethiopia. As the “Health Silk Road” initiative continues to gain momentum, China’s pharmaceutical industry is poised to play a major role in meeting Africa’s growing demand for medicines.
