Morocco’s top pharmaceutical firm, Sothema, is exploring partnerships to establish a facility in East Africa, a move that’s part of its broader expansion in Africa, CEO Lamia Tazi said Monday.
The East African facility would be Sothema’s second overseas plant if established. The company already operates a plant in Senegal, producing a range of medicines, including anti-malaria treatments.
“The next step is East Africa. We started prospecting two years ago… we have some opportunities to build something new,” Tazi told Reuters on the sidelines of the annual IMF-World Bank meetings in Marrakech.
Though Tazi didn’t specify potential partners, she mentioned the new plant would primarily produce “high-value products,” particularly those related to oncology and diabetes treatments.
After finalizing the partnership, Tazi said Sothema plans to raise additional capital.
Morocco’s pharmaceutical sector, ranked Africa’s second-largest, is poised for domestic growth. Morocco plans to expand health insurance, which would likely increase demand for medicine.
Sothema is also in the process of creating cannabis-based treatments with a focus on pain management and epilepsy. Tazi estimates it may be two years before these treatments enter the market.
Sothema joins a roster of Moroccan businesses that have invested in Africa, spanning sectors from banking to telecoms.
Despite rising production costs due to inflation, Sothema reported a 9.3-percent increase in profit last year, totaling 282 million dirhams ($27.2 million).
Sothema produces about 60 million units of drugs annually and operates a diversified portfolio of 35 multinational laboratories producing and exporting goods to Europe, the Maghreb, Sub-Saharan Africa, and the Persian Gulf. The Morocco-based drugmaker is controlled by the multimillionaire Tazi and Berrada families, who hold a combined stake of more than 70 percent.
