Addis Ababa, July 20, 2025 (FMC) — The World Bank has praised Ethiopia’s growing pharmaceutical manufacturing sector as a powerful driver of healthcare improvement, job creation, and inclusive economic development.
Sherin Varkey, World Bank Program Leader for Human Development in Ethiopia, South Sudan, Sudan, and Eritrea, described the local pharmaceutical initiative as a strategic move toward national self-reliance.
“Enhancing local pharmaceutical manufacturing is vital for Ethiopia’s self-reliance and healthcare delivery,” Varkey said.
“It’s also a tremendous opportunity for job creation. With two million youth entering the labor market each year, the health sector presents a critical avenue for generating more and better employment opportunities.”
He noted that while Ethiopia has made substantial progress in improving healthcare services, consistent and affordable access to quality medicines remains a challenge. Scaling up domestic pharmaceutical production, he told local news agency ENA, is essential to meeting these needs and advancing health equity.
Varkey also emphasized the broader economic multiplier effect of investment in healthcare. “Every job created in the health sector can generate up to 3.4 additional indirect and induced jobs across other sectors,” he said. “This makes the health sector a powerful engine for economic growth and inclusive development.”
He pointed to Ethiopia’s recent macroeconomic reforms as creating a more favorable environment for private investment. Among the flagship initiatives, Varkey highlighted the Kilinto Industrial Park — a dedicated pharmaceutical hub — as a demonstration of the government’s commitment to industrial transformation.
“The Kilinto Industrial Park, supported by investment incentives and infrastructure, is a model initiative that positions Ethiopia as a competitive pharmaceutical hub in Africa,” he said.
Varkey also praised the role of key institutions such as the Armauer Hansen Research Institute (AHRI) in providing technical expertise and strengthening Ethiopia’s pharmaceutical ecosystem.
The World Bank, together with its private sector arm, the International Finance Corporation (IFC), has been supporting Ethiopia’s pharmaceutical development through financing, policy advice, and technical assistance.
“Our partnership with Ethiopia is focused on transforming the health sector into a foundation for economic growth and social development,” Varkey stated. “Local pharmaceutical manufacturing is central to this vision, and we remain committed to supporting Ethiopia’s journey toward resilience and self-sufficiency.”