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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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