A Case Study Approaches to Explore the Challenges of Local Pharmaceutical Manufacturer in Ethiopia
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Date
2024-09-08
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Publisher
AAU
Abstract
The growth of the manufacturing sector contributes to an increase in the overall factor
productivity and competitiveness of the economy, with a cascading effect up and down the
supply chain. Although the manufacturing sector offers a path to long-term economic
progress, its expansion is not without obstacles. The current study by using the qualitative
method of approach was explore the challenges faced by the pharmaceutical manufacturer
found in Ethiopia. Data was collected through key informant interview and focus group
discussion by enquiring different stakeholders in the industry and key personnel of the
manufacturers. The study subject was identified and choose by purposive sampling. Thematic
analysis was used for the transcribed interviews and FGD replies, while manual transcript
analysis was also done. Based on the findings, the main challenge for domestic
pharmaceutical manufacturer that are currently affecting their business are Shortage/lack of
hard currency, unavailability of domestic active and inactive raw materials manufacturer,
lack of sustainable financing, shortage working capital/access to finance, problem related
with plant infrastructure, weak marketing structure, and lack of research and development
capacity. The root cause for the mentioned challenges is mainly absence of cognizance about
sector by the administration, poor coordination among different stakeholders, poor export
performance made by the country. The study also explored that the methods used by the
companies to tackle the above problems. Ethiopia's pharmaceutical industries are running
well below their potential, and their average capacity is getting smaller over time. Various
internal and external challenges can be attributed to this decline in capacity utilization