The​ ​South​ ​African​ ​Market​ ​(According​ ​to​ ​Wesgro​ ​Report​ ​2014)

Compared with the pharmaceutical market, where domestic manufacturers are now able to meet 50% of demand in volume terms, South Africa’s domestic medical device industry remains underdeveloped, with imports catering for 90% of the market by value. The South African medical device market was estimated at USD1.2bn in 2013 generating revenues in excess of ZAR12.1bn and ranks among the top 30 largest in the world. The market is forecast to grow by a CAGR of 7.7% between 2013 and 2018, driven mainly by the development and upgrade of hospitals through public-private partnerships. South Africa’s medical device production firms tend to be small or medium sized businesses and often combine distribution activity with manufacturing. Multinational companies present in South Africa often operate in a joint venture capacity with local firms. Most South African manufacturers focus on producing basic medical equipment and supplies. Production is focused on bandages and dressings, medical furniture and low technology items. A growing private sector is one of the key features of the South African medical device market. Close to 70% of the medical practitioners in the country work for the private sector. Nevertheless, local players are likely to take a growing share of the South African market as they move into more high-tech areas, claiming much of the extra value from the predicted
market growth.