Sh55bn drug plant to create 900 jobs

Bagamoyo. A Sh55 billion pharmaceutical plant whose construction was launched yesterday in Coast Region is expected to make an annual production of 30 million bottles of therapeutic fluids that can be used for treating patients at emergency care units in hospitals.

The fluids — dextrose, ringer lactate, sodium chloride, normal saline and dextrose — are mainly imported by the Medical Stores Department (MSD). The new plant, under the M-Pharmaceutical Company, is expected to start production in the next 18 months. It is a joint venture by IPP chairman Reginald Mengi and Dr Nagesh Bhandari, an Indian surgeon.

Officials said the pharmaceutical plant, located at Kerege in Bagamoyo, would create over 900 jobs; whereby 400 will be in form of indirect employment during construction and 500 will be in the form of direct employment.

The minister for Health, Community Development, Gender, Elderly and Children, Ms Ummy Mwalimu, laid the plant’s foundation stone yesterday. Speaking during the event, the minister and she asked other pharmaceutical companies to invest in producing drugs that are in short supply in Tanzania.

Ms Mwalimu stressed that it was prudent for local drug manufacturers to focus on producing antibiotics for children and anti-retroviral drugs (ARVs), saying there is a huge demand for the medications countrywide and abroad.

She noted that government spent Sh18 billion last year alone to import drips from Uganda. “I ask you [the local manufacturers] to look into possibility of producing ARVs. There is a huge demand for the drugs here in Tanzania,” she emphasised.

Through this, she said, the government would be able to save billions of shillings spent every year on importing the medications.

Ms Mwalimu revealed that MSD spends over Sh6 billion per year for keeping drugs in stores. She said that local manufacturers can help the government cover the cost.

Mr Mengi assured the minister that the pharmaceutical firm would work with the government to boost local production of drugs as a way of promoting the country’s industrialisation plan. However, he asked the government to strengthen efforts in the control counterfeit medications. “Counterfeit medications are a threat to human life,” he noted.

He said the new plant would start production after receiving all permits from authorities. He assured the government that the new firm would produce drugs that meet the criteria of the World Health Organisation.

“Also the plant will produce kits for kidney dialyis,’’ he further revealed.

During the event, the French Ambassador to Tanzania Frederic Clavier said that his country was ready to hold a discussion with government in order to see the possibility of supporting the country’s industrialization plan.

The new plant would now make a total of four pharmaceutical industries within the region including Zinga, Kairuki, Bahari whose construction is on course.