Egypt is stepping up efforts to support pharmaceutical manufacturers and localise the production of medicines, vaccines and biotechnology products, as the government seeks to strengthen health security, cut import dependence and position the country as a regional drug manufacturing hub.
Minister of Health and Population Khaled Abdel Ghaffar held an expanded meeting on Monday with representatives of key state bodies to discuss measures to empower local drugmakers and draft a comprehensive policy framework to accelerate domestic production, the ministry said in a statement.
The talks were held in line with directives from President Abdel Fattah al-Sisi to deepen localisation of medicines and medical supplies manufacturing and increase investment in the pharmaceutical sector, a strategic industry for Africa’s most populous country.
According to ministry spokesman Hossam Abdel Ghaffar, discussions focused on preparing an actionable policy paper outlining the practical requirements for developing the pharmaceutical industry. Participants examined ways to enable manufacturers, encourage domestic investment and introduce new investment packages targeting medicines, vaccines and biotechnology.
Officials also reviewed how existing investment incentives could be better leveraged to support the sector, alongside potential state measures to attract additional capital and enhance the competitiveness of Egyptian manufacturers, the statement said.
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Abdel Ghaffar stressed the need for “practical and implementable” steps rather than broad policy pledges. He said the ministry was studying the creation of a specialised committee to support vaccine localisation and proposed organising a dedicated conference to present investment incentives and localisation mechanisms to local and foreign investors.
He also underlined the importance of strengthening public-private partnerships to accelerate development, particularly in high-value segments such as biopharmaceuticals and biological products, which require advanced technology, strict regulatory oversight and long-term investment.
The meeting brought together officials from the health ministry, the Unified Procurement Authority, the Egyptian Drug Authority and the VACSERA, as well as representatives of relevant industry chambers.
Egypt has one of the largest pharmaceutical markets in Africa and the Middle East, with more than 150 drug manufacturing facilities producing a wide range of generic medicines. Local factories already meet a large share of domestic demand, but the country remains heavily dependent on imported active pharmaceutical ingredients (APIs), specialised biologics and some vaccines.
The Covid-19 pandemic exposed vulnerabilities in global supply chains and reinforced the strategic importance of local manufacturing. In response, the government accelerated efforts to localise vaccine production, including partnerships to manufacture Covid-19 vaccines domestically through VACSERA.
Since then, authorities have sought to extend that experience to other vaccines and complex biological products, arguing that domestic production is essential for health security, price stability and export potential.
Biotechnology and biopharmaceuticals are a particular focus of the new policy push. These products which include vaccines, monoclonal antibodies and advanced therapies are among the fastest-growing segments of the global pharmaceutical industry but require significant capital, skilled labour and robust regulation.
Officials say Egypt has several advantages, including a large domestic market, a growing pool of scientific and medical graduates and proximity to African and Middle Eastern markets. The government also points to regulatory reforms and investment incentives introduced in recent years to attract manufacturers.
At the same time, the sector faces challenges. Industry players have long complained about pricing pressures, rising input costs linked to currency depreciation and delays in regulatory approvals. Balancing affordability for patients with sustainable returns for manufacturers remains a sensitive issue for policymakers.
The involvement of bodies such as the Unified Procurement Authority reflects the state’s central role in purchasing medicines for public hospitals and health programmes. Authorities see coordinated procurement, predictable pricing and long-term supply contracts as tools to encourage investment in local production.
Egypt has also been positioning its pharmaceutical industry as a potential export engine, particularly to African markets under the African Continental Free Trade Area. Officials argue that stronger local manufacturing capacity could help the country expand exports of affordable medicines while supporting industrial growth and job creation.
The policy framework discussed on Monday is expected to outline priority investment areas, regulatory reforms and incentives aimed at accelerating localisation. Officials say further consultations with industry stakeholders will follow before final recommendations are submitted to the cabinet.
For the government, boosting pharmaceutical and biotech production is not only an industrial policy objective but also a strategic one. As Abdel Ghaffar told the meeting, building a resilient domestic medicines industry is seen as central to Egypt’s ability to respond to health emergencies, reduce external vulnerability and strengthen its role as a regional healthcare manufacturing hub.
