Dar es Salaam. Tanzania is entering a new chapter in its quest to strengthen national health security and reduce billions of shillings lost annually through pharmaceutical importation.
In one of his earliest actions since taking charge of the health docket, Health minister Mohamed Mchengerwa has set in motion a bold industrial agenda, one that places the private sector at the heart of rebuilding local pharmaceutical manufacturing.
The shift comes amid staggering import figures. According to the Bank of Tanzania’s latest Monthly Economic Review, the country has spent more than $1.5 billion on importing pharmaceutical products over the past five years.
The bill stood at $329.9 million in 2021, rose to $340.4 million in 2022, eased to $286.2 million in 2023, and climbed again to $295.3 million in 2024. Provisional data for the year ending September 2025 already shows $269.9 million spent.
These numbers tell a clear story: The health sector remains heavily dependent on external supply chains, exposing the country to global price shocks, currency volatility and uncertainties in availability.
It is this vulnerability that the government now seeks to dismantle by promoting local production as a strategic economic and health priority.
According to reports, Tanzania currently has 36 factories producing medicines, medical devices and health products, with 11 dedicated to pharmaceutical manufacturing.
But despite these investments, local production meets only 10 to 20 percent of national demand, meaning, up to 80 percent of all drugs and medical supplies are imported.
Mr Mchengerwa’s directive aims to change this equation. He has issued a special circular launching the implementation of a national strategy to develop the pharmaceutical and health-product industries.
The move includes six key orders, among them: forming a Pharmaceutical Investment Acceleration Task Force (PIAT) within seven days, compiling a complete list of investors who have shown interest since 2015, convening a joint meeting with them within 30 days, and formally announcing investment opportunities through all government platforms.
“The goal is to build a strong national capacity to produce essential health products reliably within Tanzania,” the minister said on November 25, 2025.
He added: “We want to create an environment where the private sector thrives, while also empowering MSD to expand its mandate to procure, produce and distribute efficiently.”
Pharmacists and pharmaceutical technologists have welcomed the initiative, describing it as a milestone for Tanzania’s future.
Vice President of the Pharmaceutical Society of Tanzania (PST), Ms Mary Kisima, said the strategy speaks directly to the country’s long-standing weaknesses in pharmaceutical security.
“We see this as a transformative step,” she said. “The minister’s directives, especially the creation of PIAT, will be crucial in ensuring factories adhere to quality, safety and efficacy requirements set by the TMDA. This is not just an economic move; it strengthens national health security.”
She added that stronger local manufacturing would also help combat substandard and counterfeit medicines, a challenge linked globally to antimicrobial resistance.
“Increasing capacity will help us reduce the circulation of low-quality products, which is essential in tackling resistance,” she said.
Economists also support the government’s renewed push, noting that pharmaceutical importation has become a major pressure point on the country’s foreign-exchange reserves.
An economist at the University of Dar es Salaam, Mr Aidan Mrema, said cutting even a quarter of the import bill could save the government tens of millions of dollars annually.
“That money could be redirected to critical needs such as specialised diagnostic services, health-facility upgrades or expanding insurance coverage,” he noted.
“But to attract major investors, the government must address long-standing bottlenecks.”
These include high production costs, expensive raw material imports, costly regulatory compliance and difficulty accessing capital.
“Most local manufacturers rely on imported active pharmaceutical ingredients (APIs), which reduces competitiveness,” Mr Mrema said. “The state must consider targeted incentives; tax relief, subsidised industrial loans and reliable utility infrastructure, to make production viable.”
International relations expert Sarah Komba said the move also strengthens Tanzania’s geopolitical position.
“Many countries are now localising pharmaceutical production after Covid-19 disruptions. Tanzania’s strategy positions it as a regional pharmaceutical hub if executed well,” she said.
A turning point
With the government now planning 10 new factories for ARVs, tablets, injectables, drips and reagents, alongside revived engagement with past investors, stakeholders believe this could be the turning point the sector has long awaited.
What remains critical, experts say, is ensuring that the ambitious policy shift is matched with consistent political will, practical incentives and strong regulatory stewardship.
Tanzania’s push to reduce pharmaceutical imports is more than a cost-saving measure; it is a path to sovereignty, resilience and a more sustainable health system.
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