ZIMBABWE’S pharmaceutical sector has lifted capacity utilisation in the past year after investors poured US$5,2 million to recapitalise operations, businessdigest has established.
State-run National Pharmaceutical Company (NatPharm) has reportedly been struggling to meet demand for drugs at public health institutions, resulting in acute shortages of critical medicines across the country.
Players in the pharmaceutical sector have since attributed the shortages to the implementation of Statutory Instrument (S1) 122 of 2017, which was put in place by the government as a policy measure to safeguard local producers.
Government, together with the private sector, has been intensifying efforts to accelerate the pharmaceuticals sector strategy, resulting in an increase in capacity utilisation from 12% to 45%, according to official data obtained by businessdigest.
Industry and Commerce minister Sekai Nzenza told businessdigest that the ministry was pushing for the utilisation of domestic resources and raw materials to increase productivity within the pharmaceutical sector.
“The results in the state of the industry (report submitted by Nzenza to cabinet recently) are evidence of the concerted effort between government and the private sector to revive the pharmaceutical sector,” she said.
“In 2021, the Ministry of Industry and Commerce launched a pharmaceutical manufacturing strategy responding to local demand and also the effects of Covid-19.
“The thrust of the strategy was to enable the utilisation of domestic resources and raw materials to increase productivity within the pharmaceutical sector,” Nzenza said.
- Financial inclusion critical for African agriculture success
- Industry cries foul over new export surrender requirements
- Real estate key enabler of economic activity: Nzenza
- Economic situation worries Japan
Keep Reading
She said there had been an increase in the availability of locally manufactured pharmaceutical products and entry of new players in the field, bringing in competition.
Nzenza said the government and the industry were shifting focus towards innovation to enable the proficient use of local resources in the production of products for international consumption.
“Going forward, the focus is on innovation and technology. Particularly tapping into the expertise of those countries, which have not only successfully industrialised their pharmaceutical sector but have also embraced (innovation) to enable proficient use of local resources to produce high-value products for local and international consumption,” she said.
According to Nzenza, the outbreak of Covid-19 resulted in local producers expanding operations and venturing into manufacturing of personal protection equipment (PPEs) and Covid-related drugs, whilst some pharmaceutical retailers took advantage of the opportunity to start production.
A number of investments have been undertaken by both the old and new players.
Among the investments made in the sector include a US$1 million investment by Datlabs for plant upgrades, a US$274 000 investment by Plus-Five for plant expansion and further investments by Cospharm Pharmaceutical, which invested US$3 million for the production of tablets, capsules and oral liquids.
