TANZANIA'S Pharmaceutical Industry SPOTLIGHT

There are a total of 14 registered domestic pharmaceutical industries in Tanzania, of which 11 produce human medicines, two produce veterinary medicines, and one facility manufactures health devices. However, most of these industries have a limited range of products and primarily focus on producing generics. These include Tanzania Pharmaceuticals Industries, AA Pharmaceuticals, Keko Pharmaceuticals, Mansoor Daya Chemical, Shelys Pharmaceuticals, Tanzansino United Pharmaceuticals, and Interchem Pharmaceuticals. In addition to these local manufacturers, multinational pharmaceutical companies such as GlaxoSmithKline, AstraZeneca, Sanofi, Johnson & Johnson, Boehringer Ingelheim, Bayer, Novartis, and Novo Nordisk supply the Tanzanian market through exports. According to the United Nations COMTRADE database on international trade, Tanzania imported pharmaceutical products worth US$458.77 million in 2021. The top five importers of pharmaceutical products in Tanzania during the same period were Phillips Pharmaceutical Limited, which enjoyed the highest market share at 16.2%, followed by Astra Pharma Limited at 12%, Wide spectrum Ltd at 11.7%, JD Pharmacy at 6.9%, and HEKO Pharmaceuticals at 5.2%.

The sector is also supplied by Indian drug manufacturers such as Ranbaxy, Dr. Reddy's, Cipla, Strides Arcolab, Panacea Biotech, and Piramal Healthcare, primarily through the import of generic medicines. India dominates the drugs imports market with a 54% cumulative market share of total imports from 2013-2016, ahead of competitors such as Egypt, Switzerland, the USA, and South Africa. A systematic analysis of data for pharmaceutical imports from the Ministry of Health and data from 20132016 fiscal years accessed from the Tanzania Food and Drugs Authority (TFDA) confirms that India ranked as the first country for exporting the highest value of pharmaceuticals into Tanzania, with a total worth of US$216 million in the 2013-2014 fiscal year, followed by Egypt (11.7%), Switzerland and the USA hold 4.1% of cumulative market share.

The private sector suppliers in Tanzania imported pharmaceuticals worth US$216 million during the same fiscal year, indicating India's dominance in supplying pharmaceuticals to Tanzania. By 2020-2021 fiscal year, it was forecasted that imported pharmaceuticals for the private sector supply chain will reach a total value of US$906 million. Therefore, India's dominance in exporting pharmaceuticals to Tanzania is expected to continue, despite the competition from other countries.

According to the Tanzanian Ministry of Health, Community Development, Gender, Elderly, and Children, the pharmaceutical sector is a priority area for investment, and the government has developed several policies and strategies to promote investment in the sector. These include the National Health Policy 20172022, the Tanzania Food, Drugs, and Cosmetics Regulations 2015, and the Pharmaceutical Sector Action Plan 2014-2020.

The Tanzanian government has recognized the importance of achieving self-sufficiency in the pharmaceutical sector, with 33% of medicines being produced locally in 2009. However, this has dropped to 10-20% in 2016 due to various challenges, including registration delays, unfavorable tax laws, labor shortages, poor infrastructure, and rising power prices. The government has encouraged investments from Indian generic drug makers to establish local production facilities and seeks collaborations with international pharmaceutical companies.

The government has tasked several public institutions to create a more conducive investment environment, including the Medical Stores Department, National Health Insurance Fund, Tanzania Investment Bank, Tanzania Food and Drugs Authority, and Tanzania Industrial Research and Development Organization. Despite this, a WHO study has highlighted that local pharmaceutical production in Tanzania may not compare with cost-effective imported drugs from India, which has over 70 U.S.-approved production plants for APIs and ARVs. Investment opportunities in the Tanzanian pharmaceutical sector include local manufacturing to reduce reliance on imported drugs, efficient distribution channels to ensure medicine and vaccines reach remote areas, research and development focused on tropical diseases prevalent in the region, and increased regulatory oversight to support the development of strong frameworks and institutions. Both local and international investors have significant opportunities to invest in these areas.