State moves to fast-track pharma investments

DAR ES SALAAM: THE government on Tuesday launched the Pharmaceutical Investment Acceleration Task Force (PIAT) to remove bottlenecks, attract investors and position Tanzania as a leading pharmaceutical hub in Africa.

Health Minister Mohamed Mchengerwa said the taskforce will coordinate approvals for licences, permits, product registration and infrastructure simultaneously, replacing lengthy sequential procedures that have slowed investment in the sector.

“To translate policy into action, the government has begun implementing a special investment acceleration framework, with PIAT serving as the central coordination mechanism,” Mchengerwa said, during a high-level meeting with local manufacturers of medicines and health products.

He added, “The task force will ensure faster decisions, better coordination among institutions and clear guidance for investors.” The minister further said that the government has already issued an Expression of Interest (EOI) for health products to attract domestic and international investors.

“The deadline for submissions is March 26, 2026. Investors will be encouraged to form partnerships, introduce advanced technologies and comply with international standards,” he said.

ALSO READ: TZ, Russia boost strategic alliance

Mr Mchengerwa acknowledged concerns raised by manufacturers, including competition from imports, procurement policies focused solely on price, high energy costs, limited access to affordable financing and shortages of investment land.

“The government is imimplementing measures to address these challenges, but building a strong pharmaceutical industry requires private sector commitment. Manufacturers must invest in quality, technology and long‑term growth,” he said.

Citing export data, Mchengerwa noted that Tanzania’s pharmaceutical exports were below 2.45bn/- in 2023, compared with more than 343bn/- for Kenya, based on the equivalent of export figures in US dollars. “The problem is not the market.

The problem is standards,” he said, emphasising that meeting World Health Organisation Good Manufacturing Practices (WHO‑GMP) is crucial to compete regionally and globally.

The minister stressed that a robust domestic industry is essential to protect citizens’ health, particularly during natural disasters, public health emergencies, or global crises.

Countries lacking local production capacity, he said, are the most vulnerable to shortages of essential medicines. Beyond meeting domestic needs, the government aims to make Tanzania a regional production and distribution hub, integrating local industries into East African and global value chains.

“This approach will place Tanzania on the map as a country contributing meaningfully to regional and international health security,” Mchengerwa said.

A key pillar of the strategy is the transition to next‑generation medicines and modern production technologies. Many medicines circulating in East African markets are outdated products phased out in developed countries, compromising treatment quality and patient safety.

“For too long, Tanzania has remained a final market for medicines no longer acceptable elsewhere. This is costly, extends illness and exposes patients to substandard products,” the minister said.

The government aims to strengthen domestic production through adherence to international standards, use of local raw materials, job creation, research capacity development and reduced foreign exchange expenditure.

“National health security cannot be built on dependence on external suppliers. Sustainable protection lies in local manufacturing,” Mchengerwa said.