RYAN CHIGOCHE
Drug firms are optimistic the Pharmaceutical Manufacturing Strategy for the period 2021 to 2025, which was approved by Cabinet last year, would help extricate them from the doldrums.
The strategy was launched upon the realisation that over the past few years, the local pharmaceutical industry was battling low levels of production, huge imports, lack of financial resources, antiquated equipment and lack of commercialisation of local traditional medicines, among many other challenges.
Pharmaceutical Society of Zimbabwe president Portifa Mwendera said the Pharmaceutical Manufacturing Strategy talks about the funding gaps in the sector and it also answers what responsible authorities should be doing to achieve its goals
“The pharmacy players are in full support of the strategy and as we begin the new year we are confident that through the strategy some of the key challenges troubling the sector will be addressed,” Mwendera told Business Times.
The local pharmaceutical companies are contributing about 12% of local medicine consumed locally.
The strategy aims to double local production of essential medicines to 60% by 2025 from the current 30%.
Sales revenue of these locally produced medicines is also expected to increase to US$150m from US$31.5m.
The strategy also aims to increase the market share of local pharmaceutical products to 35% by 2025 from 12% with the new local product registration targeted to increase to 20% in 2025 from 5%.
According to the strategy, the implementation of the local content strategy is going to be fast tracked with the government ensuring that the directive to procure locally is adhered to.
To increase production of local content local farming of traditional medicine is going to be encouraged both communally and commercially to increase medicinal output.
The strategy is also going to focus on competitiveness whereby the government in consultation with the pharmaceutical sector will continuously revise and update the list of pharmaceutical raw materials exempted from import duties and VAT to ensure that local products are competitive.
Export development is going to be another key component of the strategy as it speaks of taking advantage of opportunities presented by the opening up of new markets through implementation of regional Trade Agreements at SADC, COMESA and the recently launched African Continental Free Trade Area. They present an opportunity for ready markets hence the need to promote exports of local products.
Industry and Commerce minister, Sekai Nzenza, also said the strategy was going to play a big part in propelling the local pharmaceutical industry to the next level.
“The strategy is designed to take the pharmaceutical industry to the next level by promoting local production and exports of medicines into the region and the rest of the world. The pharmaceutical sector is a priority in the National Development Strategy 1 (2021-2025) and Zimbabwe National Industrial Development Policy (2019-2023),” Nzenza said.
She added: “The sector has potential to contribute to the national economic development as witnessed by some companies which are already exporting in the region. The strategy’s main pillars include the implementation of a Good Manufacturing Practice (GMP) roadmap, strengthening of national medicine regulatory capacity, export focus and product development.”
The financial requirement for implementing the Strategy is pegged at US$45m. About US$43m is required for GMP upgrading and product development with the balance meant to support infrastructure.
Treasury, foreign direct investment, local banks, joint ventures and setting up of Pharmaceutical Sector Revitalisation Fund have been pointed as possible sources to secure funding for the sector.
Nzenza said implementation of the strategy is going to be spearheaded by the Ministry of Industry and Commerce and pharmaceutical value chain players.
Other key ministries such as Health and Child Care, Finance and Economic Development, Ministry of Higher and Tertiary Education, Science and Technology Development, Justice, Legal and Parliamentary Affairs, Lands, Agriculture, Fisheries, Water and Rural Resettlement will also collaborate to ensure the successful implementation of the strategy.
The Zimbabwean pharmaceutical Industry consists of at least nine companies including CAPS Pharmaceuticals and Varichem Pharmaceuticals.
