Tanzania eyes major US investors in health

DAR ES SALAAM: TANZANIA is seeking to attract major United States investors into the health sector, particularly pharmaceutical, medical equipment, diagnostic and health technology manufacturing, as the government moves to position the country as a regional hub for health product production.

Minister for Health, Mr Mohamed Mchengerwa, said Tanzania was no longer seeking investors merely to supply the domestic market, but strategic partners capable of investing capital, transferring technology, creating jobs and linking local industries to regional markets.

Speaking during the US-Tanzania Health Partnership Stakeholders Meeting in Washington, DC, on Thursday, he said pharmaceutical manufacturing had become a strategic priority as the government sought to build domestic production capacity and reduce reliance on imported health products.

Mr Mchengerwa said the government was working to attract American pharmaceutical, diagnostic and medical-device companies through fiscal incentives, improved regulatory pathways, public procurement and financing mechanisms designed to make investments more viable. “

Tanzania is not looking for investors for capital alone, but partners who will help build industries, transfer technology, create employment and make Tanzania an important part of the health-products manufacturing value chain,” he said.

He said the approach was also reflected in the five-year health cooperation Memorandum of Understanding (MoU) signed with the United States on July 1, 2026, covering the period from 2026 to 2030. Under the agreement, Tanzania is committing more than 1.8 billion US dollars, while the US is expected to contribute about 1.34 billion US dollars.

The partnership is based on co-ownership rather than charity. To facilitate investment, the Ministry of Health has established the Pharmaceutical Investment Acceleration Taskforce (PIAT), bringing together the Tanzania Investment and Special Economic Zones Authority (TISEZA), Tanzania Medicines and Medical Devices Authority (TMDA), Medical Stores Department (MSD), Tanzania Revenue Authority (TRA) and special economic zone authorities.

Mr Mchengerwa said the arrangement was intended to simplify the investment process by bringing relevant institutions together.

“We are bringing all these institutions together because the investor should not have to move from one door to another. The five doors are now one,” he said.

He added that the government was setting aside a dedicated pharmaceutical special economic zone at Mloganzila where investors could establish manufacturing facilities.

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The government is also working to align tariffs and VAT treatment for pharmaceutical raw materials and packaging under the East African Community (EAC) and Southern African Development Community (SADC), with the aim of making local production more competitive than importing finished medicines.

Mr Mchengerwa said MSD was being repositioned to provide predictable demand for local manufacturers through multi-year framework contracts, giving investors an assured public-sector market. He said a Tanzanian pharmaceutical factory would therefore have a potential anchor customer from the outset, while the country’s ports and regional trade links would provide opportunities to serve markets beyond Tanzania.

The TMDA, which he said had attained World Health Organisation (WHO) maturity level three, is also developing reliance pathways to allow products approved by stringent regulators, including the US Food and Drug Administration, to avoid unnecessary duplication of regulatory processes.

The investment drive is further being supported by growing domestic demand following implementation of Universal Health Insurance, which began on January 26, 2026. Mr Mchengerwa said Tanzania’s regional position strengthened its investment case, noting that its membership of both EAC and SADC gives manufacturers access to a combined market of more than 500 million people.

Mr Mchengerwa said the combination of a growing domestic market, improved regulations, investment incentives, regional market access and government procurement was creating opportunities for US companies to establish longterm operations in Tanzania.

He urged American investors to take advantage of the reforms and partner with the government in building a stronger and more self-reliant health-products manufacturing industry.