How the AfCFTA can facilitate trade of African drugs, vaccines & better health access

The African Continental Free Trade Area Agreement (AfCFTA) has been hailed as a beacon of hope for diversifying economies, reducing reliance on exported goods, and boosting regional trade across the continent. However, there is a growing concern that the opportunities and challenges for health innovators are being overlooked in this historic agreement. To shed light on how the AfCFTA can better improve the health space in Africa, Michael Moreland, the Co-founder and CEO of Field Intelligence, recently sat down for an insightful interview with CNBC Africa. Moreland highlighted the immense potential for the health space within the AfCFTA, emphasizing the increasing demand for locally made products in Africa. Despite this demand, he pointed out that a staggering 94% of products in Africa are still imported, highlighting the need to connect local manufacturers to broader markets for greater access, better pricing, and more suitable products for patients. The interlinking of the healthcare and trade sectors is crucial, as they both rely on each other for growth and development. While early efforts of the AfCFTA have focused on enhancing the trade environment, including financial and physical infrastructure, Moreland stressed that healthcare has not been a top priority. Nevertheless, he highlighted that the agreement's initiatives could have direct and indirect impacts on health outcomes, population health, and pave the way for regulatory harmonization. Despite Africa being home to 375 pharmaceutical manufacturers, the trade between them remains limited within national borders due to supply chain and value chain challenges. Issues with transport logistics and regulatory barriers have created obstacles for local manufacturers to expand into other African markets. Moreland emphasized the need for immediate action to facilitate the trade of African drugs and vaccines, calling for more attention to be given to the healthcare sector in AfCFTA discussions. He noted that while COVID initiatives are commendable, the focus should also extend to routine health systems and regulatory harmonization beyond the pandemic. Africa's pharmaceutical industry heavily relies on imports, but Moreland highlighted the continent's potential as the fastest-growing regional market with a high demand for healthcare solutions. The AfCFTA presents an opportunity for innovators to leverage the entire continent and access more capital to develop pan-African solutions. Regulatory harmonization is key to unlocking the full potential of the AfCFTA in the health space. Moreland suggested implementing common frameworks to streamline product registration processes across African countries. While progress in regulatory harmonization may be gradual, sustained efforts are needed to drive lasting change. Ultimately, Moreland underscored the critical role of the health space in achieving sustainable development for Africa. He emphasized that the attention given to healthcare within the AfCFTA will be pivotal in realizing the continent's full potential for growth and prosperity.