Exploring the conditions for the development and growth of the pharmaceutical industry in KwaZulu-Natal.

Abstract

Evidence from the literature suggests that PESTLE and Porter’s Five Forces theoretical frameworks are fundamental when studying the growth dynamics of the pharmaceutical healthcare sector. Various studies of the pharmaceutical industry suggest that the sector is critical for economic growth, access to affordable healthcare, and addressing socioeconomic challenges. Recently, public healthcare in South Africa encountered numerous challenges in terms of the non-availability of vaccinations to deal with the COVID-19 pandemic. This was due to a lack of manufacturing capabilities, resulting in overreliance on imported vaccinations at that time. Therefore, this study argues that there is a competitive advantage that favours imported manufactured products such as vaccinations. This study aimed to critically analyse the growth dynamics of the pharmaceutical sector by looking at the conditions for development, limitations that are linked to regulations and contribution to economic growth in the province of KwaZulu-Natal. Using a qualitative research design method, the study collected data by conducting interviews with key players in the private sector and government. The study participants were from Xylomed Pharmaceutical, Ensemble Manufacturers, Dube Trade Port, and the Department of Economic Development, Tourism and Environmental Affairs. The analysis reveals that there is minimal interest from the government to grow the sector as is evident in the poor regulatory framework aimed at promoting and growing the sector. Subsequently, the KwaZulu-Natal province is struggling to attract foreign investment. The province is not optimally leveraging opportunities provided by foreign investment and capital, which is proven to address socioeconomic challenges. Also, the study discovered that sectorial long-term vision necessitates a skills development plan that is related to sector demand and addresses socioeconomic challenges. Thus, the framework and policies must be linked to this strategy to achieve aggregate productivity growth in the KwaZulu-Natal province. In addition, this study argues that the government’s responsiveness to the pharmaceutical sector necessitates an agile approach in capacitating the industry players and strengthening coherence. The primary implication for this enquiry is that the socioeconomic challenges will persist, resulting in the country relying on foreign aid to grow the sector. Even though the study had limitations regarding the cases reviewed and the scope, it is the researcher’s view that it would provide a much-needed practical and theoretical lens for future similar studies.