DMS Lat 30° 6' 15.9444'' EM Lon 1° 58' 14.0844'' S
LOGISTICS
IS THE KEY
TO BETTER
HEALTHCARE
IN AFRICA
34903 93409

01
The hidden heroes working to deliver aid in times of crisis

In Europe, 73% of the population has had two Covid-19 vaccine doses. In the U.S., 69% of the population are considered fully vaccinated. In Africa, that number falls to just 49.7% of the population. This disparity is longstanding, replicated across healthcare provision. But the pandemic shone a light on its causes.

Logistics challenges are a major blocker in Africa’s access to healthcare. While temperature-sensitive Pfizer/BioNTech and Moderna vaccines proliferated across the U.S. and Europe, much of Africa was unable to use them, due to the lack of cold storage facilities and refrigerated transport required to maintain sub-zero temperatures and prevent spoilage.

But a quiet revolution is underway in African medical logistics – and it has the potential to transform healthcare access across the continent.

02
Connecting Africa

The infrastructure in Africa is not well developed,” says Mohammed Akoojee, Group Chief Operating Officer for Global Logistics at DP World. It’s something DP World has been working hard to change.

Akoojee says that since leading logistics and market access business Imperial Logistics (Imperial) was acquired by Dubai-based logistics giant DP World in March 2022, “we have invested in cold chain logistics across Africa. We have temperature-controlled facilities in southern, eastern, and western Africa.”

These facilities are part of an extensive network that also includes in-bound logistics, 100,000 sq. m. of warehousing in 27 locations, and 127 primary care clinics under the Unjani Clinics Network – an initiative in which DP World’s Imperial business is a partner and key funder. Unjani Clinics provide affordable and accessible healthcare to uninsured patients for a minimal fee. It also empowers nurses to operate and own primary healthcare container clinics in their communities.

And in a landmark strategic healthcare alliance, DP World’s Imperial business has partnered with Ubipharm from January 2022 onwards to create a pan-African, end-to-end healthcare distribution network – one of the largest in Africa – across 40 countries.

This alliance is an unprecedented integration of African pharmaceutical logistics, with the potential to substantially strengthen healthcare access across the continent, and a significant reduction in complexity – decreasing the need for pharmacies, hospitals, and doctors to work with multiple distributors to obtain medicine.

But while connections like these are fundamental to physically moving medicine where it’s needed, there are also administrative barriers to overcome.

S 25° 16' 37.1532'' N
S 25° 16' 37.1532'' N
S 25° 16' 37.1532'' N

Trading commenced on 1st January 2021, but unpicking a continent’s worth of sector- and goods-specific duties is a gradual process expected to take years. But with progress said to be on-track, hopes are high. And as further trade barriers come down, supply chain costs reduce, making medicine more affordable.

Aside from reducing prices in pharmacies, reduced logistics costs may also contribute to finally establishing an African pharmaceutical manufacturing sector.

03
Radically reducing costs

[In Africa] up to 75% of a product’s price can be logistics,” says Akoojee. “Globally, that number is usually in high
single digits.”

Trading commenced on 1st January 2021, but unpicking a continent’s worth of sector- and goods-specific duties is a gradual process expected to take years. But with progress said to be on-track, hopes are high. And as further trade barriers come down, supply chain costs reduce, making medicine more affordable.

Aside from reducing prices in pharmacies, reduced logistics costs may also contribute to finally establishing an African pharmaceutical manufacturing sector.

In Africa up to 75% of a product’s price can be logistics, globally, that number is usually in high single digits.”
Mohammed Akoojee
Group Chief Operating Officer
for Global Logistics at DP World

04
Enabling homegrown medicine

There were many reasons Africa lost out in the initial scramble for Covid-19 vaccines. One was the continent’s lack of medical manufacturing capacity, making it dependant on other countries.

Africa imports up to 90% of its medicine. And when global supply chains ground to a half during the pandemic, many pharmacies in Africa found themselves empty of everything from over-the-counter painkillers to critical medicines for cancer and HIV.

“Africa has to become self-sufficient,” says Akoojee. And logistics is a big part of achieving that. “If you can create efficient infrastructure and logistics more people want to manufacture in Africa. Companies like DP World are trade enablers. By making distribution more effective, lowering the cost-to-market, manufacturers are encouraged to set up closer to their customers.”

Logistics is far from the only barrier to establishing domestic drug production. But cheaper distribution could be a significant shot-in-the-arm for efforts to attract investors and build capacity.

With a stronger manufacturing base, Africa would be better positioned to produce its own vaccines for new Covid-19 strains – or another pandemic – as well as securing a reliable supply of affordable generic medicines.

05
Transforming African
healthcare

The challenges facing Africa’s healthcare are multi-dimensional. But logistics runs through them all.

By joining the dots between Africa’s fragmented markets, the ACFTA, and the Imperial/Ubipharm network, stand to radically improve the continent’s medical logistics.

In doing so, they have the potential to transform African healthcare – making medication more accessible to every single person on the continent.

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