Indian pharmaceutical companies invited to invest in SA
THE Deputy Minister of Trade and Industry, Mr Bulelani Magwanishe has invited Indian pharmaceutical companies to invest in South Africa in order to contribute in growing the country’s economy, increasing industrialisation, creating employment and accelerating transformation in the sector.
Magwanishe was addressing potential investors at a pharmaceutical sector engagement session hosted by the Department of Trade and Industry in partnership with the Indian Chamber of Commerce in Hyderabad, India. Magwanishe is leading a mission as part of government’s investment attraction drive in the pharmaceutical sector.
“We have launched a major investment
recruitment drive of $100 billion over the next five years. Our visit to India prioritises investment in the pharmaceuticals, medical devices and consumables.
“These are the main sectors that we have identified for growth and industrial value chain.
“These provide unlimited opportunities for the Indian companies to invest in as the South African pharmaceutical sector is the largest drug market in Africa. In 2015, the total market value was estimated at $3.3 billion.
“By 2019, the South African exports of pharmaceutical products will increase to approximately $526 million. This presents infinite opportunities for
investors to access multiple markets in Africa,” said Magwanishe.
He added that the South African government sought to construct a globally competitive industrial economy through various initiatives and programmes such as the development of Special Economic Zones (SEZs).
He singled out the Dube Trade Port SEZ in Durban as critical to expanding relations between South Africa and India.
“The Dube Trade Port is developing a pharmaceutical cluster which provides an integrated infrastructure and services for ease of doing business in the trade zone.
“Equipped with shared utilities, this
will further enhance competition and access to global markets. The SEZ has about 10 pharmaceutical companies with an estimated value of $370m worth of investment being negotiated.”
Magwanishe told the business people that he was particularly impressed by the public and private sector collaboration he witnessed during the visit to the Genome Valley Knowledge Park earlier in the day.
“The ecosystem designed to support the development of research, innovation and the incubation of small, medium and micro enterprises there is particularly impressive. I wish to encourage the Provincial Government of Telangana and Genome Valley Knowledge Park to partner with our research institutions and special economic zones in developing such an ecosystem for South Africa.
“India and South Africa should collaborate on initiatives directly addressing the Fourth Industrial Revolution in order to collectively subdue the triple challenges of poverty, inequality and unemployment.”
Magwanishe also urged the Indian Chamber to engage with the South African chambers in order to facilitate and enhance direct interaction between business people from the two countries.