The Deputy Permanent Secretary in the Ministry of Health, responsible for Pharmaceuticals and Medical Devices, Emmanuel Tayari , said preparations for the first pharmaceutical SEZ at Mloganzila are nearing completion.
The site covers approximately 600 acres and is expected to become the cornerstone of the country’s pharmaceutical manufacturing expansion.
A second location has been identified at Bagamoyo. The proposed site spans 100 acres and is also in the final stages of preparation.
Together, the two sites will provide a combined total of 700 acres designated exclusively for pharmaceutical investment.
Speaking during a recent interview in Dodoma, Mr Tayari confirmed that preparations for launching the Mloganzila Pharmaceutical and Medical Special Economic Zone are almost complete.
He noted that both locations have been prioritised due to their proximity to essential infrastructure and their potential to support long-term industrial growth.
He stated that the Bagamoyo site has reached its final stage of preparation, bringing the total land allocated for pharmaceutical investment to 700 acres.
The government considers the allocation a major milestone in efforts to build a sustainable pharmaceutical manufacturing ecosystem.
Investor interest in the pharmaceutical SEZ programme has grown steadily. Since the government opened the application process in December last year, more than 50 submissions have been received.
These applications are currently under review as authorities assess technical and financial readiness.
Officials continue to seek additional investors from both domestic and international markets.
The government has urged Tanzanians with financial capacity to partner with local and foreign investors in joint ventures.
The intention is to ensure strong local participation and ownership within the emerging pharmaceutical industry.
Mr Tayari emphasised that Tanzanians with significant financial resources should consider investing in pharmaceutical manufacturing rather than concentrating on luxury assets.
He stated that participation at the early stage would enable citizens to benefit from long-term industrial growth and secure ownership in strategic sectors.
He added that timely participation would help safeguard national interests.
He warned that failure to engage now could allow foreign investors to dominate the sector in the coming decade.
Authorities believe early involvement by local investors will help strengthen domestic industrial capacity.
The SEZ initiative forms part of a broader national strategy to position Tanzania as a pharmaceutical manufacturing hub within Africa.
Officials estimate that total investments in the sector could reach between $5 billion and $10 billion over the next decade.
Such investments are expected to transform the pharmaceutical landscape and create new economic opportunities.
The government aims not only to satisfy domestic demand but also to supply medicines to regional and international markets.
Particular emphasis has been placed on exporting to member states within the Southern African Development Community (SADC).
Tanzania also plans to participate fully in the SADC pooled procurement system for medicines.
The programme allows participating countries to combine procurement volumes.
This collective approach is expected to strengthen bargaining power and reduce medicine costs across member states.
Mr Tayari explained that large-scale procurement significantly enhances negotiating strength.
He stated that participation in pooled procurement would lower the cost of medicines while creating opportunities for locally produced drugs to enter regional markets.
To support export ambitions, all pharmaceutical factories within the SEZs will be required to meet internationally recognised standards.
These include Good Manufacturing Practice (GMP) certification and World Health Organisation prequalification standards.
Compliance with these standards is expected to enhance global acceptance of locally produced medicines.
Infrastructure Development to Reduce Production Costs
High production costs remain a major obstacle to pharmaceutical manufacturing in many developing economies.
To address this challenge, the government plans to provide comprehensive infrastructure within the designated zones.
Authorities have prioritised the construction of reliable road networks, consistent electricity supply, and access to natural gas.
These services are considered essential to lowering production costs and improving manufacturing efficiency.
Mr Tayari stated that reliable electricity supply and access to gas are central to the government’s strategy.
Coordination with relevant energy institutions is underway to ensure adequate supply for industrial operations.
These measures are expected to enhance investor confidence and improve operational sustainability.
In addition to infrastructure development, the government plans to establish a modern bioequivalence laboratory at Mloganzila.
The facility will be constructed with an estimated investment of $10 million.
The laboratory will test the quality and effectiveness of medicines and support scientific research activities.
Officials believe the laboratory will reduce the cost of research and development, which often presents a significant financial burden to manufacturers.
By providing local testing capacity, the facility will reduce reliance on foreign laboratories and shorten product development timelines.
Enhancing Research Commercialisation
The government has identified research commercialisation as a key area requiring improvement.
Despite the presence of reputable research institutions, many locally developed innovations have not progressed to commercial production.
Mr Tayari noted that the commercialisation of research outputs from the National Institute for Medical Research and the Ifakara Health Institute remains limited.
The establishment of the bioequivalence laboratory is expected to bridge the gap between research and manufacturing.
He stated that the new facility will ensure that research conducted in Tanzania remains within the country.
Findings generated through research institutions will be integrated directly into pharmaceutical production processes.
This approach is intended to strengthen local innovation and reduce dependence on imported technologies.
Local manufacturing is also expected to strengthen efforts to combat counterfeit medicines. Authorities believe domestic production will simplify inspection and regulatory oversight.
Monitoring locally manufactured products is considered more manageable than controlling large volumes of imported medicines.
Employment and Skills Development
The pharmaceutical SEZ programme is expected to generate substantial employment opportunities.
Thousands of direct and indirect jobs are projected across manufacturing, research, logistics, and quality assurance sectors.
The development is also expected to create opportunities for graduates in pharmacy, chemistry, engineering, and related disciplines.
Many graduates currently face limited employment prospects due to the absence of large-scale pharmaceutical manufacturing facilities.
Authorities believe the programme will encourage skills development and professional specialisation.
The growth of domestic manufacturing is expected to stimulate demand for technical expertise in laboratory sciences, regulatory compliance, and industrial engineering.
To strengthen technical capacity, the government has engaged Tanzanian professionals working abroad.
More than 50 experts currently employed in senior positions within the global pharmaceutical industry are providing advisory support. Their expertise is expected to guide the establishment of robust manufacturing systems.
Reducing Import Dependence
Tanzania currently imports medicines valued between $800 million and $1 billion annually. Domestic manufacturers meet only about 10 percent of national demand.
This gap highlights the urgency of expanding local production capacity.
The government aims to increase domestic production to at least 80 percent of national demand within five years.
Achieving this target would significantly reduce foreign exchange expenditure and enhance supply security.
Authorities also expect demand for medicines to increase following the rollout of universal health insurance.
Expanded coverage is anticipated to increase patient access to healthcare services. This growth in demand is expected to support sustained expansion of the pharmaceutical market.
Institutional Coordination and Policy Support
Strong political commitment has been identified as a key factor supporting the pharmaceutical manufacturing strategy.
The initiative has received sustained backing from senior government leadership. Officials describe the programme as a national priority aligned with broader industrial development goals.
The formation of a Pharmaceutical Acceleration Task Force represents another significant step in strengthening coordination.
The task force includes representatives from multiple government institutions and regulatory bodies. Its mandate includes facilitating investment approvals and removing administrative barriers.
Authorities believe coordinated institutional action will accelerate project implementation.
Improved policy alignment is expected to reduce delays and enhance investor confidence.
Long-Term Vision for Continental Impact
In the long term, Tanzania aims to establish itself as a leading pharmaceutical producer within Africa.
The strategy focuses on producing affordable and high-quality medicines capable of competing in international markets.
Officials stress that success will depend on collaboration between government agencies, private sector investors, and research institutions.
Continuous engagement among stakeholders is considered essential for achieving the programme’s objectives.
Mr Tayari stated that broad participation remains necessary to ensure sustainable development of the sector.
He emphasised that the pharmaceutical SEZ initiative represents a rare opportunity to transform the national industrial landscape.
The government believes that sustained commitment from all stakeholders will determine the programme’s long-term success.
Authorities maintain that the combination of infrastructure investment, regulatory reform, and industry collaboration will position Tanzania as a regional centre for pharmaceutical manufacturing.
If successfully implemented, the SEZ programme is expected to reshape the country’s pharmaceutical industry.
It will strengthen local production capacity, support export growth, and enhance public access to affordable medicines.
The initiative stands as one of the most significant industrial development efforts currently underway in the health sector.
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