MSD adopts modern systems to improve efficiency, cut costs

MSD Director General Mavere Tukai said the institution has introduced a “Green Project” to expand the use of solar energy in its operations.

“We are investing in solar power to reduce operating costs and improve reliability. Installations have started in Mtwara, Dodoma and Chato and expansion is ongoing,” he said.

The project, estimated at Sh38.1 billion, has received Sh9.5 billion from the Global Fund for its initial phase. It targets facilities that require stable power, particularly for storing medicines and supplies under cold chain conditions.

Mr Tukai said reliance on grid electricity has posed challenges, including outages and high costs, which can affect storage conditions. Solar energy is expected to provide a more stable alternative.

MSD is also expanding the use of digital systems in procurement, storage and distribution. According to Mr Tukai, ICT systems are now used in about 95 percent of operations, helping improve coordination and reduce delays.

“We are strengthening systems to track supplies from procurement to delivery to health facilities,” he said.

In manufacturing, MSD—through its subsidiary Medipharm—is investing in local production to reduce reliance on imports.

By December 2025, a factory in Keko, Dar es Salaam, had produced more than 9.8 million face masks. A glove manufacturing plant in Idofi, Njombe, which started operations in 2024, has also begun supplying products.

MSD is also working with partners to establish pharmaceutical production facilities in Kibaha and revive an antiretroviral (ARV) plant in Arusha. The aim is to increase domestic availability of essential medicines.

At the regional level, Mr Tukai said Tanzania is participating in efforts within the Southern African Development Community (SADC) to improve coordination in the health sector, although differences in systems among member states remain a challenge.

He noted that global supply pressures have affected the availability and cost of some health commodities. For example, prices of family planning products such as condoms may rise due to production and transport constraints.

MSD has also identified operational challenges, including ageing vehicles used for distribution, which increase maintenance costs and affect efficiency.

Data management and demand forecasting remain areas of concern. Mr Tukai said some medicines expire due to mismatches between supply and demand, although such cases account for less than one percent of stock.

To address these issues, MSD has introduced internal reforms, including a contract management unit to strengthen procurement processes. It is also working with biomedical engineers to ensure medical equipment in health facilities is properly maintained.

MSD officials said medicine wastage has been reduced to below one percent, compared to the World Health Organisation’s acceptable threshold of five percent.

The agency said it will continue improving supply systems and working with health facilities to ensure medicines and medical supplies are available where needed.