Written by Ben Hirschler | From Reuters

Drugmaker GlaxoSmithKline plans to invest up to 130 million pounds ($216 million) in Africa over the next five years as chronic diseases become more common among the continent’s swelling urban middle classes. The decision reflects the draw for the pharmaceutical industry of the region’s rapid economic growth and rising demand for treatments for non-communicable diseases (NCDs) like heart and lung disorders, diabetes and cancer.

France’s Sanofi has also highlighted Africa as a promising market. Sub-Saharan Africa currently accounts for only around 500 million pounds of GSK’s annual sales, which totalled 26.5 billion pounds in 2013, but the group sees potential for much more as African economies grow.

“If you’re looking for a one- to two-year payback, then Africa is probably not the place to be,” GSK Chief Executive Andrew Witty said in a telephone interview. “But if you want to build relationships for the long term, then I think Africa is becoming very interesting because it is going through an inflection point in terms of growth.”

NCDs are expected to account for 46 percent of all deaths in sub-Saharan Africa by 2030, up from 28 percent in 2008, according to the World Bank, which will change the nature of the African market and increase demand for new products beyond treatments for acute infections.

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