The government expects to have signed contracts with investors willing to set up manufacturing sites in Mwanza, Mbeya and Kibaha under public-private partnership (PPP) by next June.

The government has embarked on a Sh1.2 trillion ($517 million) pharmaceutical project that will see three manufacturing plants being established through partnership with private investors.

The feasibility study for the project has been approved, and the next step is to identify partners as part of efforts to reduce the country’s reliance on pharmaceutical imports.

Dr John Mboya, the PPP commissioner in the Ministry of Finance and Planning, told the International Pharmaceuticals Investors Conference in Dar es Salaam that potential investors were assured of a ready market.

He further stated that, “these are feasible projects which may take four to six years to break even. The government has given assurance to the investors. We have the domestic, EAC and SADC markets.”

Dr Mboya added that the feasibility study had considered vital lessons from pharmaceutical industries in Kenya, Uganda and other countries.

A $63 million plant that will produce intravenous fluids is expected to be built in Mbeya, while Mwanza will be the location of a medical cotton wool manufacturing plant whose cost is estimated at $46 million. The general pharmaceutical factory at Kibaha is likely to cost $408 million, according to Dr Mboya.

According to the World Health Organisation, United Nations Comtrade and Business Monitor International, Tanzania’s pharmaceutical market is expected to grow to $700 million by 2021 from $450 million in 2017.

Trade and Industry minister Innocent Bashungwa, said, “Just recently, the government abolished 54 charges in an attempt to reduce the burden on investors. We also have tax incentives provided through the Tanzania Investment Centre, and the government is currently reviewing laws that are seen to impede business. Tanzania is the right place for you to invest.”

The Ethiopian government disclosed that its Chinese-built Kilinto Industrial Park (KIP) has improved the country’s ambition to attract experienced international pharmaceutical companies across the globe.

This industrial park, once fully finalized, will power the East African country’s potential to attract more foreign companies in the pharmaceutical sector as declared by The Ethiopian Investment Commission (EIC).

They also announced the signing of investment agreements with 10 international companies that have “shown great interest” to set up their industrial plants inside the premises of KIP.

With 270-hectares of land on the outskirts of Ethiopia’s capital Addis Ababa, the Kilinto Industrial Park is under construction by Chinese construction giant, Tiesiju Civil Engineering Group Co., Ltd. (CTCEGCL), at a cost of 204 million U.S. dollars.

“The Kilinto Industrial Park is now on the verge of completion, and once completed it will host more than 1,000 pharmaceutical companies.” as stressed by EIC Deputy Commissioner Temesgen Telahun.

This project is completely financed by the World Bank, features 18-km of asphalt road, provision of basic social services, green spaces, warehouses, business centers and car parking space.

Communications Director at the Ethiopian Industry Parks Development Corporation, Adenan Bere, told Xinhua recently that the East African country expects the KIP, which is under construction exclusively for pharmaceutical firms, to attract world-class companies with a view to help Ethiopia’s economy through the export of pharmaceutical products as well as import-substitution.

Bere also noted that incorporation to attracting foreign firms to penetrate Ethiopia’s emerging pharmaceutical sector, the IPDC is also working with local financial institutions to support local firms to invest in the industrial park.

It is remarkable how Ethiopian government in recent years has been attracting foreign firms in the pharmaceutical sector and especially Chinese firms which are becoming among the major foreign firms in exerting their capital and technology in the sector.

Last year, Chinese pharmaceutical giant, Sansheng Pharmaceuticals Plc, also inaugurated its production plant in Ethiopia amid Ethiopia’s higher demand for import substitution in medicines. They began its first phase of production in June 2018 inside the premises of the Eastern Industry Zone on the outskirt of Ethiopia’s capital.

Ethiopia is at present constructing or has commissioned 15 industrial parks as part of a plan to turn the country into a light manufacturing hub in Africa by 2020.