Prime
India eyes Tanzania’s growing pharmaceutical industry
What you need to know:
- Pharmexcil noted that Indian firms are eager to support Tanzania’s efforts to build capacity for manufacturing medicines that meet both domestic and regional export standards. However, delays in registration, inspections, and factory approvals remain key obstacles.
Mumbai. Tanzania’s pharmaceutical industry is attracting growing interest from Indian investors keen to establish local manufacturing plants, as the country makes steady progress in developing the sector.
According to the Pharmaceuticals Export Promotion Council of India (Pharmexcil), several Indian pharmaceutical firms are actively exploring investment opportunities in Tanzania. Their aim is to enhance domestic drug production—particularly of capsules and syrups—and reduce dependence on imports.
Set up under the provisions of Foreign Trade Policy by the Ministry of Commerce and Industry in May 2004, Pharmexcil is the authorized agency of the government of India for promotion of pharmaceutical exports from India.
Speaking during the East and Southern Africa Familiarisation Visit to India, Pharmexcil advisor Mr Sumantha Chaudhary said that although Tanzania holds strong potential, regulatory hurdles are deterring investors.
“Tanzania holds great promise in the pharmaceutical industry. But to convert interest into investment, reforms are needed—particularly in taxation and the speed of regulatory approvals,” he said.
Pharmexcil noted that Indian firms are eager to support Tanzania’s efforts to build capacity for manufacturing medicines that meet both domestic and regional export standards. However, delays in registration, inspections, and factory approvals remain key obstacles.
Mr Chaudhary cited the example of inspection procedures, where separate approvals are required for different product types such as syrups and capsules. In Kenya, for instance, inspection fees can reach up to $6,000. Similar regulatory processes exist across other EAC member states, each with varying costs, while factory approvals also take a considerable amount of time.
“Many raw materials needed for drug manufacturing are readily available in India, but they are often inaccessible in African markets. If the government can ease regulations and provide more flexibility, it would be possible to establish local pharmaceutical factories more efficiently,” he said.
Despite Indian pharmaceutical exports to Africa reaching $3.93 billion in 2025, Tanzania’s share has declined in recent years, losing ground to markets such as Angola, Ghana, and Cameroon.
Mr Chaudhary said unless Tanzania streamlines its regulatory procedures, the country risks missing out on crucial investments. “By the time approvals are granted, market conditions may have shifted, which affects the viability of investments,” he said.
He also emphasised the importance of aligning local production with regional export requirements. “If we can’t export, we go back to importing—defeating the whole purpose,” he added.
Pharmexcil Director Mr Rollins John confirmed that at least four Indian companies are in advanced discussions to set up manufacturing facilities in Tanzania. “These investments would increase access to affordable medicines and create jobs for Tanzanians,” he said.
He added that the move would also help reinforce India’s position as the “pharmacy of the world” while deepening its engagement with East African markets.
Industry stakeholders are calling for increased collaboration between India and Tanzania, including technology transfer, joint ventures, and the integration of pharmaceutical supply chains.
In a related development, the Observer Research Foundation—a leading Indian think tank—has pledged to continue strengthening cooperation with Tanzania in the areas of technology and security.
