Group visit to investigate the African market - Kenya

On April 6, Zhang Lin, deputy mayor of Weihai Pharmaceutical and Medical Device Industry Association and chairman of Shandong Qianshuda Medical Technology Co., Ltd., Na Shuncang, vice president of Weihai International Economic and Technical Cooperation Co., Ltd., Cong Jing, general manager of Weihai Huate Biotechnology Co., Ltd., Bai Lianhai, chairman of Leading Bioengineering Co., Ltd., and Yu Liying, deputy manager of the investment management department of Weihai International Economic and Technical Cooperation Co., Ltd., went to Kenya, Africa for an investment inspection. Kenya is also the first stop of the inspection team. The purpose of this inspection is to conduct research on the international market in Africa, understand the market potential, competitive environment and policy situation, and provide reference for further development of the African market.

 During the Kenyan inspection trip, Mr. Lotan, who was arranged by Kenya's Deputy Ambassador to China, Ambassador Linai, accompanied the delegation throughout the trip. On April 7, the delegation visited the Fok Medical (Kenya) factory in Tatu Industrial Park. The head of Tatu Industrial Park said that China is one of the largest sources of investment in Kenya, and Chinese companies' investment and construction projects, including the Fok Medical (Kenya) factory, are a symbol of friendship between Kenya and China. Fukai Medical (Kenya) Factory is not only Zhende Medical's first factory in Africa, but also the first factory established by China's medical device industry in Kenya. The company purchased land and factory buildings in Kenya, with a planned total investment of US$100 million. The first phase of investment has been completed, with an investment of US$30 million, including 15,000 square meters of purification workshops and 9,000 square meters of storage. It is planned to be put into use at the end of April. The main production lines are related to non-woven fabrics, such as gloves, protective clothing, surgical gowns, masks, gauze and other products. Medical equipment is temporarily semi-automated. The reason is that the later maintenance cost is high and the labor cost is low. The average salary is US$400-500 per month, and the initial employees are about 1,000 people. The second phase is about to start construction. The two parties have agreed that sufficient workshops will be reserved for Weihai enterprises in the second phase of the project. It is planned to import Weihai's semi-finished products to Kenya in the early stage, assemble and produce them locally, and sell them together. During this process, Weihai Enterprise will be mainly responsible for semi-finished products and technology, while Zhende Medical Factory will be responsible for obtaining all necessary qualification certificates and completing the assembly and production of products; the third phase of planning is under preparation; Zhende Medical Factory has an annual sales volume of 10 billion yuan, with exports accounting for 60%. The delegation also learned in detail about the operations of Weigao Group's African company in Kenya. According to Li Yuanguang, manager of Weigao's company in Kenya, the company plans to establish a complete production line in Kenya, mainly producing medical supplies such as gloves and protective clothing. As early as 2016, Weigao Group's African company was officially unveiled in Nairobi, Kenya. During the delegation's visit to Tatu Industrial Park, Li Yuanguang, manager of Weigao's company in Kenya, accompanied the delegation throughout the visit and introduced the market situation of Kenya's pharmaceutical and medical device industry.

 On April 8, I visited Minister Eliud Muriithi of the Kenya National Medical Supplies Administration (KEMSA). KEMSA is Kenya's semi-autonomous medical security department, responsible for providing, storing and transporting medical and biological products to Kenya's national public medical institutions, the Africa Aid Fund and other industry customers. It is the most important medical security unit in Kenya's disease control, medical and public health systems. I communicated with James, the purchasing manager of a large local non-profit organization (MEDS), to explore the potential for cooperation between the two sides in medical supplies and other aspects, and achieved remarkable results. Two preliminary purchase orders were reached: one of which was an order of US$1.27 million, and the products included: cotton bandages, gloves, nebulizers, gauze, etc.; the order was US$3.91 million, and the products included: surgical blades, strapping tape, gloves, high-voltage tape, bandage cotton, etc.

 Kenya has a total area of more than 580,000 square kilometers and a population of more than 50 million. It is one of the birthplaces of mankind. The medical conditions are poor, medical equipment is in short supply, there are only 50 manufacturers, and 98% of the products are imported. Kenya has been an important trading country in East Africa since ancient times and is one of the countries with a good economic foundation in sub-Saharan Africa. Through this investigation, it was found that Kenya not only has rich natural resources and human resources, but also a diversified economy, an open investment environment and perfect infrastructure, which provide convenient conditions for enterprises to conduct cross-border business. With the continuous growth of the economy and the increase in per capita income, the demand for health care in Kenya has also increased accordingly. The demographic dividend, economic growth and medical status have provided huge potential demand for the medical market.