Building Ethiopia’s Pharmaceutical Future: From Strong Regulation to Local Production

On a typical day in Addis Ababa, analysts at the Ethiopian Food and Drug Authority (EFDA) work in laboratories testing samples of medicines that may soon reach patients. Their findings inform regulatory decisions overseen by Director General Heran Gerba and her team. The work is precise and highly technical. Its purpose is straightforward: to ensure that medicines used in health facilities and sold in pharmacies are safe, effective, and of good quality.

That effort gained international recognition when Ethiopia became the first country in the Intergovernmental Authority on Development (IGAD) region and the ninth in Africa to achieve World Health Organization (WHO) Maturity Level 3 (ML3) for medicines regulation. The milestone confirms that Ethiopia’s regulatory system meets global standards. It also signals progress toward stronger local pharmaceutical manufacturing and greater public trust.

A milestone for public health

“Maturity Level 3 means that the regulatory system is stable and functioning well,” said Heran Gerba.

WHO uses a global benchmarking tool with more than 250 indicators to assess how countries regulate medicines, vaccines, and other medical products. These indicators cover the full regulatory cycle - from approval and inspection to quality testing, post-market surveillance, and governance systems. In Ethiopia, those systems are now aligned with international standards and operating in an integrated way.

It also builds confidence. When medicines are approved, inspected, and monitored under a strong regulatory system, patients can trust that what they receive meets clear standards. During emergencies—such as COVID-19 or other outbreaks—a strong regulator can also speed up approvals while maintaining scientific rigor.

The impact is direct. Public health protection is strengthened as medical products are assessed against clear quality, safety, and efficacy requirements. “Access to quality-assured medical products is a core part of a strong health system,” Heran Gerba said. Confidence also grows—among patients, providers, and institutions—when regulatory decisions are consistent and evidence-based.

During emergencies, the benefits become even more visible. A well-functioning regulator can accelerate approvals while maintaining scientific rigor.

The World Bank Group supports EFDA through the Ethiopia COVID-19 Emergency Response Project and the Regional Health Emergency Preparedness and Response Program, both of which contribute to strengthening national systems for public health preparedness, including regulatory functions.

Moving beyond import dependence

Ethiopia has long relied on imported medicines. That pattern is beginning to shift.

At the center of this shift is a change in mindset. “We are beginning to see Ethiopia as a future powerhouse of local manufacturing,” he said. The ambition now extends beyond basic medicines to include more advanced products, diagnostics, and medical equipment.

Local production serves a dual role. It supports economic growth—through jobs, investment, and industrial development—while strengthening resilience. “Health sovereignty is crucial,” Dr. Taddesse explained. “Local manufacturing ensures uninterrupted access to essential medicines.”

The COVID-19 pandemic underscored the risks of dependence on global supply chains. As borders closed and demand surged, access became uncertain. Expanding local production reduces that exposure and strengthens domestic capacity.

Ethiopia’s pharmaceutical progress is taking shape around three reinforcing elements: regulation, industrial infrastructure, and research and human capital.

1. Strong regulation builds trust and opens markets

For manufacturers, ML3 is more than a certification. It is a sign of credibility.

“Achieving Maturity Level 3 sends a powerful signal,” Taddesse Teferi said. “It shows that the regulator is evidence-based and stringent.”

That credibility has practical effects. It raises product quality through stronger enforcement of manufacturing standards and inspections. It builds trust among patients, buyers, and institutions. It also makes it easier for Ethiopian products to reach regional markets.

Across Africa, regulatory reliance is gaining traction. Heran Gerba noted that eight countries with ML3 status have signed agreements to recognize one another’s decisions. This reduces duplication and shortens the path to market entry for medicines approved in Ethiopia. Ethiopia’s position within regional frameworks such as AfCFTA and COMESA further strengthens these opportunities.

2. Kilinto: A purpose-built manufacturing hub

Regulation alone cannot sustain growth. Manufacturing requires infrastructure designed for pharmaceutical production. At Kilinto Special Economic Zone, Ethiopia has created a dedicated hub for pharmaceutical and medical equipment manufacturing. Its location in Addis Ababa offers direct access to transport networks and regional markets.

The zone spans about 279 hectares, with serviced land tailored to pharmaceutical production. Power, water, and waste treatment systems are integrated into each plot. Nearly 30 investors are already present, at stages ranging from construction to active production.

Development of this ecosystem has been supported in part by the World Bank Group’s Ethiopia Competitiveness and Job Creation Project. The project focused on attracting investment, creating jobs, and strengthening manufacturing capacity through the development of special economic zones, including Kilinto.

Additionally, through its Advisory Services program, the WBG has supported efforts to strengthen the investment environment. This includes supporting trade and market access reforms to expand domestic pharmaceutical manufacturing, enhancing multistakeholder policy dialogue among the pharmaceutical industry, commercial banks, and private sector actors, and supporting the Ethiopian Investment Commission to facilitate private investment.

3. Research and human capital: Building long-term strength

A strong pharmaceutical sector also depends on research, innovation, and skilled professionals. Armauer Hansen Research Institute (AHRI) plays an important role in Ethiopia’s research ecosystem.

With support from the World Bank Group, AHRI is strengthening its laboratory infrastructure and expanding its capacity for research, development, and bioequivalence studies.

Its work contributes both globally and domestically. Research on tuberculosis (TB)—including the STREAM trial—helped reduce treatment duration for drug-resistant TB and informed international guidelines.

At the same time, AHRI supports industry directly. It provides training in good manufacturing practices and is establishing a bioequivalence center to ensure locally produced medicines meet required standards for both domestic use and export.

At Addis Ababa University, CDT-Africa focuses on building the next generation of scientists.

Supported by the WBG under the Regional Eastern and Southern Africa Centers of Excellence Project (ACE II), CDT-Africa trains specialists in translational medicine and clinical trials. Ethiopia has registered between 40 and 70 clinical trials annually in recent years, reflecting growing research capacity.

For Professor Abebaw, the long-term trajectory is clear. “If we build strong scientific capacity, we build a sustainable economy,” he said.

“We have to be ready, another pandemic could be around the corner.”

He believes that investing in science and innovation is essential for Ethiopia’s long-term future. He also notes that during COVID-19, the dangers of total import dependence became clear.

Jobs, exports, and the next stage

Local pharmaceutical manufacturing is already generating economic impact. Jobs are created within factories and across related sectors, including packaging, logistics, and chemical supply. Ethiopia’s national strategy aims to meet half of essential medicine demand through local production. According to Heran Gerba, local production has increased significantly and now accounts for more than 40% of medicine supply in the market.

Stronger regulation and infrastructure are also opening new export opportunities. With ML3 status and growing regional cooperation, Ethiopian manufacturers are increasingly positioned to access markets beyond national borders.

However, despite progress, several challenges remain. Manufacturers face constraints such as limited access to affordable finance and foreign exchange. Exchange-rate volatility can affect costs and profitability, while faster customs processes and timely procurement payments are important to prevent supply delays.

Research institutions also face challenges in translating innovations into market-ready products. Stronger collaboration between industry, universities, and research centers will be important to move from prototype to production.

“Maturity Level 3 is not the end. It is a springboard toward Maturity Level 4 and expanded regulatory scope,” said Heran Gerba.

The milestone provides a foundation for what comes next: a more resilient pharmaceutical sector, stronger domestic production, and a growing role in regional markets.