2. MANUFACTURING : Establishment of a pharmaceutical cluster
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Opportunity
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The potential investment opportunity comprises the establishment of a pharmaceutical cluster.
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Nature of the Project
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The proposed project should focus on attracting companies that focus on the manufacturing of the following:
- Patented Ethical Drugs
- Generic Ethical Drugs
- Over the counter drugs
- Traditional medicines.
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Rationale for this venture
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The pharmaceutical market is mostly located in the Gauteng Province, making it difficult to attract investors to the Capricorn District. A market can be created by establishing a pharmaceutical cluster that would support the companies that wish to relocate or establish in the District.
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Attractiveness Assessment
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Most manufacturers will sell their products locally. Herbal medicines can be sold through pharmacies and natural food stores. There is a rapid growth in the consumption of herbal medicines in the world market. The largest categories of herbal medicines sold in Europe are cardiovascular and respiratory treatments, tonics, and digestives.
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Key Competitive Advantage
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Polokwane has been earmarked as location of choice for developing the envisaged cluster. Processing firms are mostly concentrated in Polokwane. Where firms are concentrated, there can be an advantage in collaborating. Manufacturing is a very important sector in the Polokwane LM.
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Potential Economic Impact
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The project will create job opportunities, promote entrepreneurship and curb poverty through income generation and skills training of the labourers of the project. The establishment of a pharmaceutical cluster would have the added positive impact of improved health of the population of the Capricorn DM.
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Investment Requirements
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Upon establishing a pharmaceutical cluster, the estimated total cost is projected at R107.1 million.
List of potential national funders:
- Department of Labour
- DTI
- Ntsika
List of potential international funders:
- African Development Bank
- World Bank
- Commonwealth African Investment Ltd (COMAFIN)
- Hand-Son Training Scheme (HOTS)
- Southern Africa Enterprise Development Fund
- Foreign Investors such as Anglo Gold, Investec, etc.
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Linkages
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Backward linkage opportunities
- Supply of services
- Crop production
- Production of materials used in the pharmaceutical industry
- Logistic
- Research, training and extension.
Forward linkage opportunities
- Retailing and packaging
- Development of phyto-pharmaceuticals and mass production of herbal inputs for pharmaceutical industry
- Improving quality assurance.
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