Economic Costs, Strategic Reform, and the Road Ahead
5. Economic Benefits of a Regulated Pharmaceutical Sector
A well-regulated pharmaceutical sector generates substantial economic and social returns. The WHO estimates that substandard and falsified medicines cost low- and middle-income countries USD 30.5 billion annually in wasted spending and treatment failures. Strong regulation prevents these losses by ensuring drug quality and reducing hospital readmissions, complications, and reliance on expensive second-line therapies. Moreover, preventing antimicrobial resistance avoids long-term global GDP losses projected to reach hundreds of billions of dollars by 2050, while improving workforce productivity and advancing Universal Health Coverage and the Sustainable Development Goals.
The pharmaceutical sector is also a major engine of job creation. In Europe alone, it directly employs more than 840,000 people and supports millions more indirectly. Somalia stands to benefit similarly by creating employment opportunities in pharmacy practice, laboratory sciences, regulatory affairs, and clinical research.
Credible regulation attracts foreign direct investment. Multinational pharmaceutical companies and research institutions are more likely to invest in countries with transparent and predictable regulatory environments. Strong regulation also enables partnerships with universities, supports clinical trials, and accelerates innovation. We anticipate Somalia’s pharmaceutical professionals dotted around the world can be an anchor to bring in direct foreign investment and their networks once we have strong regulatory ecosystem that protects and enhances innovation.
Pharmaceutical regulation strengthens national competitiveness in global trade and contributes to GDP growth. Alignment with regional regulatory frameworks will pave the way to using the reliance pathways and joint reviews, reducing duplication and costs. Its expected this will open pharmaceutical business opportunities for Somalia’s manufacturers to the regional economic blocks such as the East African Community and beyond.
6. Discussion
These findings reveal a deeply fragmented pharmaceutical ecosystem shaped by decades of institutional erosion and weak legal enforcement. Without a functional NMRA, counterfeit and falsified medicines will continue to proliferate. Similarly, without accredited academic programmes, Somalia cannot produce the skilled workforce required to support regulation, quality assurance, or pharmaceutical manufacturing.
Establishing pharmacy faculties and regulatory-affairs programmes would create a sustainable pipeline of professionals capable of supporting national regulatory functions and future industrial development. Aligning with regional harmonisation initiatives such as the African Medicines Agency would accelerate capacity-building, enable access to shared expertise, and support joint assessments and inspections.
A regulated pharmaceutical sector would generate broad benefits, from improved population health to economic revitalisation. Somalia’s educated youth could become a catalyst for renewed foreign investment, enhanced manufacturing capabilities, and expanded regional trade in quality-assured medicines.
7. Conclusion
Somalia stands at a pivotal moment in rebuilding its institutions, particularly within the pharmaceutical sector. Addressing regulatory and educational gaps is a national imperative for ensuring drug quality, protecting patients, and strengthening the health system. By adopting a strategic, multisectoral approach aligned with regional harmonisation frameworks and supported by a robust legal foundation, Somalia can establish a resilient pharmaceutical ecosystem capable of supporting manufacturing, clinical research, and advanced therapeutic development.
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This two-part article offers a foundational roadmap for policymakers, academic institutions, and development partners committed to building a safe, well-governed, and sustainable pharmaceutical sector in Somalia.
References
• World Health Organization (2017). Global Surveillance and Monitoring System for Substandard and Falsified Medical Products.
• AUDANEPAD / African Medicines Regulatory Harmonisation (AMRH) Programme (2023–2024).
• WHO (2024). Substandard and Falsified Medical Products: Global Estimates and Impact.
• Peerreviewed studies on substandard medicines in fragile states (2020).
• Law No. 9 of 1989, Government of Somalia.
Dr Abdullahi Ali Noor (Ameriko) is a pharmaceutical regulatory expert with over 25 years’ experience in European/USA Regulatory. He writes about civic education.
The opinion expressed in this article are those of the author and do not necessarily reflect the views of Dawan Africa.






