Tanzania’s drive to become Africa’s pharmaceutical manufacturing hub

Dar es Salaam. For decades, Tanzania has spent more than Sh2.5 trillion each year importing medicines. Now, the Government has embarked on an ambitious programme to reverse that trend through the development of pharmaceutical industrial parks that could transform the country into a major African centre for the production of medicines, vaccines and medical equipment.

The flagship project, currently under development at Mloganzila in Dar es Salaam, forms part of the Sixth Phase Government’s broader vision under President Samia Suluhu Hassan to shift Tanzania from being a major importer of pharmaceuticals to becoming a producer and exporter serving both domestic and international markets.

While many see the physical signs of progress, new infrastructure, machinery and investors entering the country, the project is also creating a new narrative of opportunity for citizens, particularly young people and professionals who see prospects for employment, innovation and economic advancement.

A vision years in the making

The idea of establishing pharmaceutical industrial parks did not emerge overnight.

During the launch of her General Election campaign on August 28, 2025, President Samia identified the establishment of industrial parks among the priorities for the first 100 days of her new term.

The commitment came as countries worldwide continued to reflect on lessons from the Covid-19 pandemic, which exposed Africa’s heavy dependence on imported medicines, vaccines and medical supplies.

At the same time, discussions at the 79th World Health Assembly reinforced the importance of developing countries investing in local pharmaceutical manufacturing and health technologies to reduce reliance on external suppliers.

For Tanzania, those discussions have already translated into action.

Health Minister Mohamed Mchengerwa, who laid the foundation stone for the 400-acre Mloganzila pharmaceutical industrial park in May this year, says the country is embarking on a new chapter in building a health-based economy.

“We are moving from dependency to domestic production—from being a market for other countries’ products to building our own manufacturing capacity,” he says.

According to Mr Mchengerwa, the industrial park model will allow manufacturers to share laboratories, quality assurance systems, warehouses, water services and other critical infrastructure, thereby reducing investment and production costs.

Mloganzila: A new centre of opportunity

A visit to Mloganzila reveals how preparations for the project are already changing lives in surrounding communities.

For more than seven years, 45-year-old food vendor Neema Shayo has operated near the project site.

Before preparations began, she sold between 20 and 30 meals a day. Since construction-related activities intensified, however, customer numbers have more than doubled as workers, engineers and visitors frequent the area.

“Today I sell more than 70 meals a day. My income has increased and I have hired two assistants. Previously, I worked alone,” she says.

What excites her most, she adds, is the prospect of full-scale industrial operations.

“We believe that once the factories begin production, even more people will come here. Small businesses like ours expect to gain access to a much larger market,” she says.

For Juma Abdulah, a resident of Kwembe, news of the industrial park has raised hopes among local youth, some of whom have already secured employment during the early construction phase.

“For years we heard about factories being built elsewhere. Now we are being told pharmaceutical factories will be established here. Even those without university degrees can benefit from opportunities in transport, construction and support services,” he says.

Similar expectations are emerging in rural areas.

In Idofi village in Njombe Region, many science graduates have long struggled to find employment that matches their qualifications.

One chemistry graduate says the project has changed perceptions about career possibilities within Tanzania.

“We used to think advanced pharmaceutical manufacturing existed only in countries such as India or South Africa. Now we can see that Tanzania can also provide opportunities of that calibre. I have already been employed at the Idofi facility and have been involved in producing intravenous cannulas for several months,” he says.

A multi trillion shilling opportunity

Beyond its social impact, the pharmaceutical sector represents a significant economic opportunity.

The Deputy Permanent Secretary in the Ministry of Health responsible for Medicines and Medical Devices, Emmanuel Tayari, says total investment in the sector could reach between $5 billion (Sh13 trillion) and $10 billion (Sh26 trillion) in the coming years.

More than 50 investors have already expressed interest in establishing pharmaceutical manufacturing operations in Tanzania.

“We have many Tanzanians with substantial financial capacity. We encourage them to seize this opportunity and invest in pharmaceutical manufacturing, including through partnerships with investors who have already shown interest,” Mr Tayari says.

The Government has so far launched two industrial parks—Mloganzila, covering 400 acres, and Kibaha, spanning 100 acres.

Their locations were selected strategically because of their proximity to educational institutions, healthcare facilities and research centres.

“Mloganzila enjoys a unique advantage because it is close to major institutions involved in education, research and healthcare. We want students to gain practical experience while ensuring industries have access to locally trained professionals,” he explains.

The Government has also secured 1,000 acres in Bagamoyo through the Tanzania Special Economic Zones Authority (Tiseza) for a larger future pharmaceutical manufacturing development.

The objective, Mr Tayari says, extends beyond meeting domestic demand.

“Currently, around 90 per cent of our medicines are imported. This presents a major investment opportunity. Our goal is to achieve at least 80 per cent local production within five years,” he says.

The Arusha ARV manufacturing project

Among the projects viewed as symbols of Tanzania’s new direction is the TPI pharmaceutical plant in Arusha.

According to the Government, the facility is now 70 per cent state-owned and is undergoing upgrades to meet Good Manufacturing Practice (GMP) standards and obtain WHO prequalification.

Mr Tayari says the ambition is not merely to supply the domestic market.

“We have expanded the plant’s capacity and installed new machinery. Our goal is to ensure products manufactured there can compete and be sold internationally,” he says.

The Government is also engaging international experts and companies to support operations while building the skills of Tanzanian professionals who will eventually manage the systems independently.

Lessons from India and Algeria

India is today among the world’s leading pharmaceutical manufacturers.

Its success in producing generic medicines has generated employment, tax revenues and foreign exchange earnings while supplying healthcare markets across the globe.

Algeria has similarly reduced its dependence on imported medicines through policies designed to nurture domestic manufacturing.

Tanzania’s health sector leaders believe similar success is achievable.

Chief Government Pharmacist Daudi Msasi says achieving that vision will require sustained investment in quality standards and modern production systems.

“We want products manufactured in Tanzania to compete with those produced anywhere in the world. That is achievable if we maintain international standards,” he says.

The economic significance

Tanzania currently spends approximately $1 billion (Sh2.6 trillion) annually importing medicines.

Should the target of producing 80 per cent of domestic pharmaceutical demand locally be achieved, a substantial share of that expenditure would remain within the national economy.

In addition to reducing pressure on foreign exchange reserves, the industry could open new export markets and generate fresh foreign currency earnings.

Economists say the expansion of pharmaceutical manufacturing would boost government revenues, strengthen the national currency and stimulate growth across sectors linked to industrial production.

However, public health experts caution that improved health outcomes cannot depend solely on pharmaceutical manufacturing.

Public health specialist Dr Ali Mzige argues that investments in prevention must continue alongside industrial development.

“Building pharmaceutical factories is essential for both health security and economic growth. But we must remember that good health begins with prevention. Continued investment in vaccination programmes, nutrition, clean water, sanitation and public health education remains critical,” he says.

According to Dr Mzige, an effective health system is one that reduces the number of people falling ill while maintaining the capacity to provide treatment when necessary.

A new place in Africa’s economic landscape

As new pharmaceutical facilities begin to take shape in Mloganzila, Kibaha and, eventually, Bagamoyo, Tanzania is positioning itself within a rapidly evolving African industrial economy.

If current targets are achieved, the pharmaceutical industrial parks could become a defining example of how Tanzania has chosen to build economic resilience and prosperity through strategic investment in the health sector.