- Magufuli tells two dormant pharmaceutical factories to
PRESIDENT John Magufuli has issued an emphatic warning to the management of two dormant pharmaceutical companies, ordering them to submit production strategies or else give way for capable investors.
He gave the directive here yesterday
shortly after inaugurating Prince Pharmaceuticals Ltd at the climax of
his two-day official tour of Mwanza Region.
The directives came after the Minister
for Industry, Trade and Investments, Mr Charles Mwijage, reported on
slow progress in production of drugs by Dar es Salaam-based Keko
Pharmaceuticals Company and Tanzania Pharmaceuticals Company Ltd.
Dr Magufuli expressed dismay over the
fact that out of 15 pharmaceutical industries in the country, only five
were operating well, calling for the situation to be revisited,
challenging capable local investors to chip in. “I encourage local
investors to invest in the pharmaceutical industry and the government
will support you, provided you produce quality products,” he said.
He stated that Tanzanians were fed up
with long processes and excuses by some investors in the industrial
sector, citing the two factories that had failed to produce and meet
public expectations for several years.
The President noted that Tanzania drug
manufacturers had an advantage of benefiting from a high local demand,
as well as open markets in the East Africa Community (EAC) and Southern
Africa Development Community (SADC) blocs, with a combined population of
more than 500 million.
Dr Magufuli explained, however, that he
would work on the request for a waiver of Value Added Tax (VAT) charged
on locally produced pharmaceutical products provided production was
boosted on a big enough scale to satisfy the local market with quantity
and quality products.
Apart from the possibility of waiving
VAT, the President urged pharmaceutical industries to ensure that
eventually, the drugs are sold at affordable prices while simultaneously
competing with imported drugs.
On the performance of other industries,
notably Mwanza Textiles Ltd (MWATEX), Dr Magufuli said it should not be
allowed to operate the way it was operating now, tasking Minister
Mwijage to make immediate interventions.
The President assured all industrial
sector investors of stable electricity supply within a few years, given
the country’s anticipation to have a total 5000 MW as soon as Kinyerezi
II, Kinyerezi III and Stieglers Gorge become fully operational. Earlier,
the Minister for Health, Community Development, Gender, Elderly and
Children, Ms Ummy Mwalimu (pictured), said the Prince Pharmaceutical
Company passed through a number of inspections and proved that it was
capable of producing quality drugs.
She said on the basis of the
breakthrough, the company had won a tender of supplying drugs worth over
2bn/- and that many more tenders were in the pipeline.
Ms Ummy said drug supply in Mwanza
Region had also improved, citing an example of the current 5bn/- budget,
against 1.9bn/- three years ago. She explained that at least 7.1bn/-
would be set aside for next financial year to ensure smooth availability
of drugs and other medical supplies in the region.
The minister pointed out, though: “We
have a problem of poor estimates of drug requirements made by many
district councils, as many are submitting partial requirements instead
of real sales made by MSD. This area should be improved,” she noted.
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