Online Reporter
Rumbidzayi Zinyuke-Senior Reporter
ZIMBABWE is rolling out a raft of measures to revitalise the local pharmaceutical industry, including the establishment of a revolving fund to provide affordable financing, reinstatement of VAT zero-rating on pharmaceutical products and investment in local drug testing infrastructure to reduce reliance on imports.
To further strengthen domestic drug manufacturing, the sugar content tax will also be prioritised to boost financial support for the production of essential medicines. The interventions were announced at yesterday’s post-Cabinet media briefing in Harare.
Giving an update on the implementation of the Zimbabwe Industrial Reconstruction and Growth Plan (2024–2025), with a specific focus on the pharmaceutical value chain, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the support to the pharmaceutical sector would ensure that the local industry can produce affordable, life-saving drugs locally.
“To guarantee continued growth of the Pharmaceutical Value Chain, the Government of Zimbabwe will continue to provide adequate funding to NatPharm and commit to ensuring sustained uptake of locally produced drugs by public agencies as well as by the private sector,” he said.
“A Pharmaceutical Revolving Fund will be established to provide affordable financing for the industry.
“Furthermore, the VAT zero-rating on pharmaceutical products will be reinstated, and the reliance on drug imports will be reduced by establishing local drug testing capabilities. The Sugar Content Tax will also be prioritised to enhance financial support for the manufacturing of essential drugs.”
The Government last year collected more than US$30 million from the special surtax on sugar content in beverages following the gazetting of Statutory Instrument 16 of 2024, the Customs and Excise (Tariff) (Amendment) Notice, 2024 (No 5) on February 9, 2024.
The funds from the tax have also been earmarked for the procurement of cancer machines in public hospitals.
Dr Muswere said the strategic objective was to increase the share of locally produced essential medicines from 36 percent to 60 percent by 2025 and reduce the national import bill from US$220 million in 2020 to about US$100 million by the end of next year.
The pharmaceutical sector has been identified as a strategic priority within the country’s industrial recovery plan due to its growth potential and critical role in reducing dependency on imports. As of 2023, Zimbabwe’s pharmaceutical market was estimated to be worth US$400 million.
Dr Muswere said local drug manufacturing had recorded notable progress since the onset of the growth plan in 2020.
“Since 2020, the local pharmaceutical value chain has experienced tremendous growth, with the percentage of locally produced essential medicines increasing from 15 percent to 36 percent,” he said.
“Additionally, capacity utilisation has risen significantly from 12 percent in 2020 to 51 percent in 2024.
“The sector has also seen an influx of new entrants, resulting in a 56 percent increase in the total number of producers, from 9 to 14.”
Although imports still outweigh exports, pharmaceutical exports grew by 15,6 percent between 2020 and 2024, rising from US$4,5 million to US$5,2 million.
In a further show of confidence in local regulation, the Medicines Control Authority of Zimbabwe (MCAZ) achieved Maturity Level 3 under the World Health Organisation’s global benchmarking tool, a recognition of a stable and well-functioning regulatory system.
Peter Tanyanyiwa