Who We Are Work With Us Write For Us Med

research forums events people expertspeak about ORF हिन्दी ORF मराठी

COMMENTARIES AUG 10 2016

India and Africa’s partnership for access to

medicines
TANOUBI NGANGOM

Courtesy: DFID/CC BY-NC-ND 2.0

ANTIRETROVIRAL DRUGS INDIA-AFRICA INTELLECTUAL PROPERTY RIGHTS IPR MDGS

MILLENNIUM DEVELOPMENT GOALS

Prime Minister Modi’s recently concluded four-nation tour to Africa is primarily

regarded as part of his larger energy diplomacy outreach. However, what is often
overlooked are the enormous investment opportunities that African markets offer —
especially in the midst of stagnating markets elsewhere. The agenda for this visit was
centred on two themes: (a) mutual economic interests, and (b) common development
aspirations. The pharmaceutical sector presents a meeting point for both goals — of
exporting medicines to Africa, as well as creating manufacturing bases in Africa.

The India-Africa partnership on medicine access has been a longstanding one: in 2001,
when pharmaceutical giants were suing the South African government for attempting
to source cheaper forms of antiretroviral (ARV) drugs, Indian generic drug
manufacturer Cipla volunteered to sell the generic version for less than one dollar a
day in Africa. The beginnings of this partnership, in many ways, paved the way for the
development of a global action plan on access to medicines: the United Nations
introduced a high level panel on access to medicines; and both the Millennium
Development Goals, and its successor, the Sustainable Development Goals, include
specific targets dealing with the issue. Cipla’s decision also allowed African nations to
make headway in their fight against the HIV/AIDS epidemic.

India still remains a major supplier of affordable essential drugs to developing

countries. Despite necessary compliance with the TRIPS (Trade-Related Aspects of
Intellectual Property Rights) conditions — particularly relating to the inclusion of
medicine patents — the country has managed to nurture a booming domestic generic
drug industry, and has been a strong advocate for access expansion. Today, Indian-
made ARV drugs constitute 80% of Africa’s total consumption. According to Médecins
Sans Frontières, India is the principal source of pharmaceutical drugs by volume for
South Africa.

Continued production of generic drugs has, however, led to increased scrutiny of

India’s IPR (Intellectual Property Rights) practices. India is under constant pressure
from the United States and the European Union to align with more stringent IPR
norms. Stricter IPR would inhibit generic drug production, which in turn would lead to
higher drug prices.

Against this backdrop, Prime Minister Modi and President Obama’s move to establish
an annual intellectual property working group has set off alarm bells among key
medicine importing countries in the African region. In addition to this, the Indian
government has recently introduced its first national IPR policy despite a perfectly
functional and globally competent patent law. The South African health minister,
Aaron Motsoaledi, in an interview, stated: “I have heard a rumour that they [India] want
to reverse their [IP] policies. We are very scared and worried.” At the third India-Africa
Forum Summit (IAFS-III) too, several African leaders urged India to maintain its pro-
public health stance.

India’s position continues to be in support of generic drug manufacturing for increased

drug access: this point was reiterated by J. P. Nadda, India’s Health Minister, just last
month at the United Nations General Assembly. Modi’s visit also clearly signals that
Africa figures high on India’s priority list, and consequently Africa’s requirements must
be taken into account. While this means India will continue to maintain a stable export
of drugs to the region, it is time to take a further step: establish a Make-in-Africa
initiative.

The African pharmaceutical industry is growing at an unprecedented pace: its market

value is projected to rise up to USD 40-65 billion by 2020. High economic growth in
Africa is increasing the purchasing power of its citizens; thus, offering the prospect of
higher consumption and more lucrative markets. Moreover, the African region is taking
targeted steps to jumpstart local pharmaceutical production through
the Pharmaceutical Manufacturing Plan for Africa (PMPA) and additional incentives at
the country level. This provides both regions with a strategic opportunity to further
individual interests.

Indian generic companies stand to benefit significantly by investing in Africa. Firstly,

Indian manufacturers can take advantage of the international IPR exemptions for the
least developed countries (LDCs): as was agreed by the TRIPS Council, the LDCs have
leeway on protecting intellectual property until 1 July 2021. Secondly, this move from
exporting generic drugs for African markets to producing them in Africa would be a
relatively smooth one. Indian firms have already established steady supply chains: this
nuanced understanding of African markets will make setting up manufacturing units
easier. Thirdly, many African governments are emulating the Indian IPR model — this
again provides a familiar frontier for Indian pharmaceutical manufacturers to enter
into. Lastly, Make-in-Africa allows Indian companies to continue expanding medicines
access regardless of any possible future alterations in India’s IPR policy.

On Africa’s side, there are also obvious benefits: local production means a more
reliable source of pharmaceuticals under public control. Domestic manufacturing also
brings with it more jobs — in the pharmaceutical sector and other linked sectors.

The Prime Minister’s visit is indicative of strong political will from both sides. It
reinforces Africa’s prominence in India’s wider foreign policy strategy today and in the
 future. Leveraging traditional tools of economic diplomacy in newer areas like
pharmaceutical production presents a win-win arrangement for both regions.

This commentary originally appeared in The British Medical Journal.

The views expressed above belong to the author(s).

ORF research and analyses now available on Telegram! Click here to access our curated content — blogs,
longforms and interviews.

RESEARCH EVENTS PEOPLE LO C

About ORF

Set up in 1990, ORF seeks to lead and aid policy thinking towards building a strong and prosperous India in a fair and equitable world
Indian voices and ideas to forums shaping global debates. ORF provides non-partisan, independent analyses and inputs on matters o
resources and global governance to diverse decision-makers (governments, business communities, academia, civil society). ORF’s ma
platforms and invest in tomorrow’s thought leaders today.

Topics

Climate, Food and Environment

Defence and Security

Development

Development Partnerships

Domestic Politics and Governance

Economics and Finance

Energy

Gender

Healthcare

International Affairs

Media and Internet

Content Type

Videos

Series

Books and Monographs

Commentaries

Event Reports

GP-ORF Series

Issue Briefs and Special Reports

Monitors

Occasional Papers

Primer

Surveys & Polls

Young Voices

Archives

Programmes and Centres

Centre for New Economic Diplomacy

Centre for Security, Strategy and Technology

Economy and Growth

Energy and Climate Change

Political Economy

Strategic Studies

Sustainable Development

Tech and Media

Initiatives

Cybersecurity and Internet Governance

Education and Skilling

Energy and Resources

Eurasian Studies
 Future of Work

International Trade and Finance

Maritime Studies

Media Studies

Neighbourhood Studies

Nuclear and Space Studies

Political Reform and Governance

Public Health

Urban Policy

Geographies

Africa

Americas

China

European Union

India

Neighbourhood

Russia and Eurasia

south Asia

The Pacific, East and Southeast Asia

USA and Canada

West Asia

Who We Are

Work With Us

Write For Us

Media Release

Partners

Subscribe To ORF

Contact Us

       

Terms and Conditions ORF Privacy Policy Declaration of Contributions ORF Social Media Ad
ORF © 2021 | Digital Impressions