New subsidiary set to boost local production of medicines, equipment

Dar es Salaam. The government has established a new subsidiary to oversee the local production of medicines and medical equipment in the country.

Dubbed Medical Stores Department (MSD), Medipharm Manufacturing Co. Ltd, commenced operations in April 2023.

The subsidiary’s objective is to improve efficiency in the production of health products by diversifying the range of items manufactured and enabling partnerships with investors through joint ventures to increase access to essential products nationwide.

The development was disclosed in Parliament on Friday, April 25, 2025, by the Deputy Minister for Health, Dr Godwin Mollel, when responding to a question from Mlalo MP Rashid Shangazi.

In his main question, the lawmaker asked when a subsidiary company for the production and management of human medicines outside of MSD would be established.

“Honourable speaker, the company was assigned its board of management in June 2024. It currently operates health product manufacturing facilities in Njombe Region and Keko in Dar es Salaam, along with a pharmaceutical project in Zegereni, Kibaha, Coast Region,” said Dr Mollel.

“We also aim to facilitate agreements with additional investors through joint ventures to strengthen the availability of essential products across the country,” he added.

Mr Shangazi argued that relying solely on MSD for medicine production restricts supply, noting that currently only four percent of medicines are locally produced.

He urged the government to liberalise the sector to allow more participation from private investors.

In 2018, the MSD signed an agreement to become the primary supplier of medicines, medical equipment, and laboratory supplies to 16 Southern African Development Community (SADC) member states.

The agreement, signed following a meeting of SADC health ministers, mandated MSD to receive orders, manage statistics and data, maintain the supply database, and oversee procurement processes.