Production of Conventional and Improved Traditional Medicines
Production of Conventional and Improved Traditional Medicines
Business Model Description
Invest in the production of essential conventional and improved traditional medicines that use knowledge on the local pharmacopeia from Département de médecine traditionnelle. The drug manufacturing companies source their inputs from resources produced locally, including alcohol, sugar, medicinal leaves, cardboards, and labels. The end products include analgesics, anti-infectives, antitussives, antibiotics, and antiulcerants. High value medicines include antiretrovirals, antimalarials, anti-tuberculosis drugs, and plant-based chemotherapy drugs. The main target market is the domestic market, with a potential to export in the West African region through AfCTA and internationally.
Expected Impact
Promote the use of local knowledge on traditional medicine to enhance access, affordability, and distribution of quality essential medicines, while reducing dependence on imported pharmaceuticals.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Mali: Bamako
- Mali: Ségou
- Mali: Sikasso
Sector Classification
Health Care
Development need
Mali ranked 144th out of 195 on the 2021 Global Health Security Index. In 2022, only 58.7% of Malians had a healthcare facility within 5 km, and 5,300 deaths were linked to inadequate WASH in healthcare settings. Combined with malaria, this resulted in an economic burden of USD 73 million, including USD 21 million for treating healthcare-associated infections (4, 5, 6).
Policy priority
Through Cadre stratégique pour la Relance Économique et le Développement Durable 2019-2023, government of Mali prioritizes interventions that extend health care coverage, improve the promotion of traditional medicine, and improve the availability and distribution of essential medicines (13).
Gender inequalities and marginalization issues
In 2025, 3.9 million people in Mali will require healthcare assistance, with refugees and internally displaced populations facing the most urgent needs. Limited access worsens the situation, as 41% of the rural population must travel over 10 km to reach a healthcare facility. This increases the risk of sexual abuse and gender-based violence, while survivors seeking justice often encounter social pressure and rights violations (1, 2, 3).
Investment opportunities introduction
Given Mali's healthcare system challenges, especially for vulnerable populations, investing in resilient supply chains and expanding health service coverage are crucial. These improvements will enhance access to essential medicines, strengthen system autonomy, and ensure more equitable healthcare delivery (35).
Key bottlenecks introduction
Limited road quality, inefficient electricity transmission, shortage of trained medical professionals, security risks, and low financial capacities within the population hinder the strengthening of the healthcare system. (4,7)
Biotechnology and Pharmaceuticals
Development need
Pharmaceutical products were Mali’s fifth-largest import category in 2023, yet illegal and counterfeit medicines account for 55% to 60% of the domestic market, valued at approximately USD 105 million. The use of substandard or falsified drugs incurs an economic cost of USD 12 to 44.7 million annually for patient care (7, 8, 15).
Policy priority
Politique pharmaceutique national, 2012 prioritizes interventions that improve the geographical, physical, and financial accessibility of quality essential medicines to the population through the development of the local production capacity (9).
Gender inequalities and marginalization issues
51% of Malians forego health care for financial reasons, including 40% of Bamako's population. This dropout rate reaches up to 60% for poorest quintiles and in certain regions such as Kayes, Koulikoro, and Taoudenit (10, 11).
Investment opportunities introduction
The demand for pharmaceuticals in Africa is projected to double to USD 64.74 billion by 2030, driven by population growth, urbanization, and rising healthcare needs. This presents a significant opportunity to develop local manufacturing capacities and reduce reliance on imports (12).
Key bottlenecks introduction
Inadequate support infrastructure, limited access to funding, and a dominant informal market limit the development of a strong local pharmaceutical capacity in Mali. (4,7)
Biotechnology and Pharmaceuticals
Pipeline Opportunity
Production of Conventional and Improved Traditional Medicines
Invest in the production of essential conventional and improved traditional medicines that use knowledge on the local pharmacopeia from Département de médecine traditionnelle. The drug manufacturing companies source their inputs from resources produced locally, including alcohol, sugar, medicinal leaves, cardboards, and labels. The end products include analgesics, anti-infectives, antitussives, antibiotics, and antiulcerants. High value medicines include antiretrovirals, antimalarials, anti-tuberculosis drugs, and plant-based chemotherapy drugs. The main target market is the domestic market, with a potential to export in the West African region through AfCTA and internationally.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
<5% for conventional drugs and >25% for improved traditional medicines.
Pharmaceutical products are the fifth-largest import category in Mali by value. In 2023, the country imported USD 160.8 million in medicines, including USD 159.4 million in conventional drugs and USD 1.4 million in improved traditional medicines (15).
Improved traditional medicines represent the fastest-growing market in Mali, with imports increasing at an annual rate of 30% between 2019 and 2023, four times higher than the global traditional medicine market's projected 7.5% CAGR from 2024 to 2031. In contrast, conventional drug imports grew by just 5% annually during the same period (15, 16).
Traditional medicine plays a crucial role in Mali’s health system, with 75% of the population relying on it for treating common illnesses like malaria, cough, and hepatitis. Locally developed improved traditional medicines, 8 of which are listed on the Essential Drugs List, are prescribed by up to 85% of healthcare workers in some regions (17, 18, 19, 20).
Indicative Return
15% - 20%
> 25%
Consultations with drug producing companies operating in the conventional market in Mali, in January 2025, indicate an IRR of 19% over a period of 5 years, for a minimum investment of USD 2 million and an actualization rate of 11% (14).
Drug producing companies operating in the improved traditional medicine market in Mali indicate that early and growth stage ventures demonstrate a Gross Profit Margin (GPM) ranging between 25%-30% (14).
Investment Timeframe
Short Term (0–5 years)
Consultations with drug producing companies in Mali, in January 2025, indicate a minimum of 4.1 years to generate positive returns, based on an initial investment of USD 2.7 to USD 6.6 million (14).
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Market - Highly Regulated
Market - High Level of Competition
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
Malaria, lower respiratory infections, diarrheal diseases, and preterm birth complications remain leading causes of death in Mali, while, the country's limited production capacity for essential medicines forces heavy reliance on imports from Europe and Asia (15, 23).
Substandard and falsified medical products make up 55% to 60% of Mali's pharmaceutical market. In June 2020, Sikasso's Central Narcotics Office seized over 3 tons of counterfeit medicines, including antibiotics, analgesics, and antiparasitic, underscoring the severity of the problem (7, 8).
The World Health Organization estimates that the annual cost of treating individuals who have consumed substandard and falsified medicines in Mali could range from USD 12 million to USD 44 million (6).
Gender & Marginalisation
Only 4.3% of Mali’s population has health insurance. As a result, 51% of Malians, including 40% of Bamako residents, skipped healthcare in 2022 due to cost. The rate was even higher, at 60%, among the poorest and in regions like Kayes, Koulikoro, and Taoudenit (10, 11).
The United Nations Office for the Coordination of Humanitarian Affairs estimates that 3.9 million people in Mali will require healthcare assistance in 2025, including access to essential medicines. Refugees and internally displaced populations face the most urgent needs (3).
In 2022, 10.72 million people (46% of Mali's population) required treatment for neglected tropical diseases (NTDs) such as onchocerciasis, guinea worm, and noma. Furthermore, the risk of death from non-communicable diseases (NCDs) like cancer and diabetes was 22% (23).
Expected Development Outcome
Local drug manufacturing improves the availability, access and distribution of essential medicines for the preventive and curative treatments of major diseases, reducing the dependence on imports, and improving their affordability, especially for low-income populations.
Local drug manufacturing improves the safety of the drug supply chain and reduces the prevalence of substandard and falsified medicines by reducing the cost of quality medicines. This in turn lowers the financial and public health burden caused by these counterfeit and ineffective medical products.
Gender & Marginalisation
The development of a local supply of essential medicines enhances access to health and medical care for vulnerable groups, including people with limited financial means, refugees, and internally displaced persons.
Local drug manufacturing enhances the prevention and treatment of neglected tropical diseases and non-communicable diseases, reducing mortality rates and improving overall public health outcomes through early intervention and disease management.
Primary SDGs addressed
3.b.3 Proportion of health facilities that have a core set of relevant essential medicines available and affordable on a sustainable basis
3.3.3 Malaria incidence per 1,000 population
Data on the proportion of health facilities that have core set of essential medicines is not available. However, the rate of availability of essential medicines reached 80% in public and community health facilities in 2021 (30).
353.56 per 1,000 people in 2021 (23).
Cadre stratégique pour la Relance Économique et le Développement Durable 2019-2023 targets availability and affordability of essential medicines in all health facilities (13).
9.5.1 Research and development expenditure as a proportion of GDP
9.2.2 Manufacturing employment as a proportion of total employment
0.17% of GDP in research and development expenditure in 2021 (28).
10% in 2023; 10% among men and 11% among women (29).
Plan d'Action de la Réfondation de l'État 2022-2026 targets an increase of the budget for scientific research to 1% of GDP (24).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Outcome Risks
The development of a pharmacopeia-led pharmaceutical sector could lead to a competition for medicinal leaves between drug companies and tea manufacturing companies.
Failure to develop and apply sound quality assurance systems could lead to the production of ineffective or unsafe medicines.
Impact Risks
Frequent power outages can disrupt the production process and cold storage of the medicines, limiting the expected impacts on supply stocks and retail prices.
The reliance on imported inputs, such as active pharmaceutical ingredients, for the production of conventional medicines can limit the expected impact on the resilience of the production system.
A shortage of trained personnel in pharmaceutical sciences and manufacturing can affect production quality.
Disruption of road transportation and an unequal distribution of the produced medicines to rural or conflict-afflicted areas could exclude the most vulnerable populations from this opportunity.
Impact Classification
What
Local production of conventional and improved traditional medicines improves access to quality essential medicines, increase their affordability, and reduce the reliance on imports.
Who
Smallholder farmers, sugarcane producers, consumers, refugees, internally displaced people, pharmaceutical distributors, drugstores, and packaging and transportation companies are impacted.
Risk
Power outages, reliance on imported inputs, and shortage in trained personnel may limit the expected impacts of this business model.
Contribution
Local production of conventional and improved traditional medicine increases the supply of essential medicines and reduces their prices, which are otherwise imported and more expensive.
How Much
Local manufacturing of medicines can reduce the price of basic medicines by 40% in Mali (25).
Impact Thesis
Promote the use of local knowledge on traditional medicine to enhance access, affordability, and distribution of quality essential medicines, while reducing dependence on imported pharmaceuticals.
Enabling Environment
Policy Environment
Politique pharmaceutique nationale, 2012: describes the priorities of the pharmaceutical sector in Mali, including 1) the geographical, physical, and financial accessibility of quality essential medicines to the population, and 2) the development of the research on the traditional pharmacopea (9).
Plan d'Action de la Réfondation de l'État, 2022-2026: promotes the valorization of traditional medicine (24).
Schéma Directeur d’Approvisionnement en Médicaments Essentiels et autres Produits de Santé, 2010: prioritizes an adequate supply of essential medicines to the population throughout the country, at costs compatible with their purchasing power (30).
Plan stratégique national de lutte contre les maladies tropicales négligées, 2022-2026: targets a 50% reduction in the number of people requiring interventions to combat neglected tropical diseases by 2026, and a 25% reduction in Noma-related morbidity and mortality (32).
Financial Environment
Financial incentives: China-Africa Development Fund invested USD 50 million for the construction of a local drug manufacturing company in Mali (26).
Financial incentives: European Investment Bank launched the USD 53.95 million Africa pharmaceutical manufacturing initiative to provide long-term financing for the production of Active Pharmaceutical Ingredients in Sub-Saharan Africa (12).
Financial incentives: The Transform Health Fund is a blended finance vehicle that provides junior equity financing to Malian companies involved in healthcare supply chain transformation (27).
Fiscal incentives: Investment projects with a capital greater than USD 1.6 million benefit from tax exemptions during the first 8 years. Scale-up investments are exempt from import duties, taxes on equipment and IBIC withholding tax for two years (32).
Other incentives: Département de médecine traditionelle, as part of Institut National de Recherche Publique, registers the traditional use of medicinal plants in Mali. This contributes to the formulation and development of new improved traditional medicines (17).
Regulatory Environment
Arrêté No. 06-0730, 2006: fixes the list of approved essential medicines in international non-proprietary names in Mali, including 8 improved traditional medicines in syrup, herbal tea, oral powder, ointment format for the use of adults and children (19).
Decree No. 04-557/P-RM on the marketing authorization for medicines for human and veterinary use, 2004: establishes the conditions for the marketing of medicines for human use, including the submission of a market authorization request, renewable after five years (33).
Law No. 02-049 on health orientation, 2002: indicates the directives for the national health policy and the national pharmaceutical policy, including the availability and accessibility of essential medicines (34).
Marketplace Participants
Private Sector
Usine Malienne de Produits Pharmaceutiques, BioMed, Humanwell Healthcare, Apolo Pharma Laboratoire Sarl, Transform Health Fund, AfricInvest, Health Finance Coalition.
Government
Ministère de la Santé et du Développement Social, Commission Nationale des Autorisations de Mise sur le Marché, Département de médecine traditionnelle, Direction de la Pharmacie et du Médicament, Laboratoire National de la Santé.
Multilaterals
China-Africa Development Fund, European Investment Bank, World Health Organization.
Non-Profit
Ordre national des pharmaciens du Mali.
Target Locations
Mali: Bamako
Mali: Ségou
Mali: Sikasso
References
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