40 investors eye 1tri/- med trade

SOME 38 investors have expressed interest in the local pharmaceutical industry to help the country meet the demand for medicines and medical supplies.Some of the investors include Suma JKT, Reginald Mengi, Mohamed Enterprises, Africables and Singida Oil.

The Minister for Health, Community Development, Gender, Elderly and Children, Ms Ummy Mwalimu (pictured), speaking to pharmaceutical investors with interest to put money in the industry, said the positive response follows President John Magufuli’s call for heavy investments in pharmaceuticals.

Receiving 181 vehicles worth 20.5bn/- for the Medical Stores Department (MSD) recently, Dr Magufuli said it was imperative for the investors to strategically tap the money that the government has earmarked for procurement of drugs and medical supplies.

“It is unfortunate that 94 per cent of all drugs and medical supplies are imported, with only six per cent procured domestically,” charged President Magufuli. It takes up to nine months for the imports to arrive and because the order is placed bulkily to cater for the huge demand, the medicines have to be stored in expensive facilities to last long, said Ms Mwalimu. She pointed out that the whole process incurs a huge cost taking into account that the purchases have to be done in foreign currency.

“The country spends about 269bn/- from its budget and over 300bn/- dished out from the Health Basket Fund, all together over 1trl/- is used annually to import drugs and medical supplies,” she noted. Ms Mwalimu noted that the 38 investments in the pharmaceutical industry will reduce the cost of drugs and medical supplies, create new job opportunities and boost the economy, speed up development and guarantee quality health service in the country.

The Minister of Industry, Trade and Investment, Mr Charles Mwijage noted that forthe country to realise its vision 2025 of becoming an industrialised economy, its citizens need to have a good health.

Mr Mwijage also said that establishment of local pharmaceutical factories will help the country save a lot of money spent on bulk consignment to meet the demand. “We need a strong Tanzanian private sector, we therefore encourage our people to grab the opportunity… the government is working on regulatory reforms to eradicate existing challenges and already the one stop centre is in place,” said Mr Mwijage.

He noted that a blue print has been devised and a committee will sit around this month for approval to make it operational soon. Mr Mwijage said any pharmaceutical factory which will be established needs to partner with think tanks for the improvement of the industry. “Among things needed to put up a factory is technology, capital and market as for the market you already have 1.3trl/- as reference.

We have been informed here of tax exemption incentives of up to 100 per cent on machinery and other things,” he said. The Chairman of the Pharmaceutical Society of Tanzania (PST), Mr Ramadhani Madabida said to procure drugs abroad is politically untenable, socially undesirable and economic unviable. Mr Madabida noted some of the challenges as market access, advising the government to consider the possibilities of paying for locally produced medicines in advance due to financial weakness of the industries.

“Yes we get a 10 per cent preference on pharmaceutical tenders but it’s not enough...we request for 30 per cent instead…we don’t pay duty on some materials but there is water, fuel and electricity for which we have to pay VAT that cripples our competitiveness,” he added.

Among institutions that attended the meeting are TIC, Tanzania Food and Drugs Authority, National Development Corporation and Muhimbili University of Health and Allied Sciences