Bringing Industrial and Health Policies Closer: Reviving Pharmaceutical Production in Ethiopia

Manufacturing of medicines in Ethiopia started in 1964 with the establishment of one joint venture manufacturing company. This company remained the sole producer of medicines throughout the military regime (1974–91). Following the regime change in 1991, several manufacturing plants were established during the period referred to as the ‘boom and crash’ period, since, for reasons described below, some of the new companies were not successful. To respond to the crisis, the government took a mix of initiatives, simultaneously fulfilling its responsibility for health care improvement and industrial promotion. As a result of policy adjustments and attractive incentives, the environment for investment in pharmaceuticals became conducive, prompting private initiative to engage in industrial investment. Joint ventures that were realized have not only contributed to the pharmaceutical industry; they also effectively transferred skill and technology.