African drug supply chain gets smarter with IBM-powered AI platform

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Prosper Africa, USAid’s e-trade Alliance, IBM Consulting, and the National Association of Boards of Pharmacy (NABP) are collaborating to launch Pulse by NABP in South Africa.

Pulse will connect US and global pharmaceutical companies like Pfizer and Roche with African distributors and pharmacies in this emerging market, enabling better communication between trading partners and adding security to this evolving supply chain by enhancing the ability to identify and trace medications

British Robinson, Prosper Africa’s co-ordinator, said, “Through Prosper Africa’s Tech for Trade Alliance, under the Digital Trade for Africa (DTA) initiative, we support partnerships between companies to leverage technology and create products and services that catalyse financial and social returns for Africans and Americans alike.

"We are excited that IBM will use its Watson AI capabilities in this pilot to help improve the traceability of drugs exported to Africa.”

Unlocking pharmaceutical potential

The African pharmaceutical market size was estimated at $26.85bn in 2023 and is expected to expand by 3.4% from 2024 to 2030. There is a significant opportunity for US companies to better understand the market opportunity of Africa, while providing African pharmacies the ability to monetise their data by using AI tools to create more effective sales strategies.

Despite market opportunities, the distribution of pharmaceutical products in Africa presents significant commercial challenges, including fragmented supply chains, poor infrastructure, and differences in regulations across countries.

This can result in distribution inefficiencies, resulting in limited product supply and higher prices for patients at the point of sale. By enhancing supply-chain visibility, the proposed Pulse pilot has the potential to benefit African distributors and pharmacies by enhancing operations, reducing spoilage, ensuring consistent stock, and creating more profitable partnerships with international suppliers.

"IBM is committed to applying technology and consulting expertise to enhance transparency and foster trust across critical industries like healthcare. The launch of Pulse by NABP demonstrates the power of digital solutions in transforming the pharmaceutical supply chain,” said Riaz Osman, managing partner, Southern Africa & Africa Growth Markets, IBM Consulting.

“By leveraging AI and data we aim to create a secure, transparent environment that enables pharmacies and distributors to make more informed, data-driven decisions. This partnership underscores our dedication to help build resilient ecosystems that drive economic growth and societal impact.

“As an organisation whose mission is the protection of public health, we are excited to partner with Prosper Africa and IBM to provide tools that provide greater visibility into African pharmaceutical supply chains and support a more transparent, efficient, and accessible market for medications,“ said Lemrey Carter, executive director of NABP.

“We look forward to leveraging Pulse by NABP as a pathway for future development of a successful, sustainable, and scalable platform that in the future could provide patients with confidence in the safety and quality of the drugs they buy.”

IBM Consulting’s deep technology and industry expertise, combined with its AI-powered delivery platform, IBM Consulting Advantage will aid in collecting and analysing product scan data for Pulse by NABP in collaboration with African pharmacies and retailers.

Additionally, IBM will provide training on AI tools like watsonx.ai to better enable these pharmacies and retailers to make data-driven decisions.

This public-private collaboration reflects the potential to drive both economic growth and health improvements, benefiting US companies and African consumers alike.