Zimbabwe moves to revive pharmaceutical sector

The Government of Zimbabwe has announced a comprehensive set of interventions aimed at revitalising the country's pharmaceutical industry, with a focus on increasing local drug production, reducing import dependence, and improving access to life-saving medication.

The measures, unveiled during a post-Cabinet media briefing in Harare on Tuesday, include the establishment of a Pharmaceutical Revolving Fund, reinstatement of VAT zero-rating on pharmaceutical products, and targeted investment in local drug testing infrastructure.

Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the initiatives are part of the broader Zimbabwe Industrial Reconstruction and Growth Plan (2024–2025), with a strategic focus on rebuilding the pharmaceutical value chain.

"To guarantee continued growth of the pharmaceutical value chain, the Government will continue to provide adequate funding to NatPharm and ensure sustained uptake of locally produced drugs by public agencies and the private sector," said Dr Muswere.

He revealed that the newly proposed Pharmaceutical Revolving Fund will provide affordable financing to domestic manufacturers, while reinstating the VAT zero-rating is expected to lower the cost of medicines for consumers.

In a further push to strengthen local manufacturing, the Government will channel proceeds from the Sugar Content Tax towards the production of essential drugs. Last year, more than US$30 million was collected from the tax, which was introduced via Statutory Instrument 16 of 2024. A portion of this fund has also been allocated for the procurement of cancer treatment equipment in public hospitals.

Dr Muswere said the government's goal is to increase the share of locally produced essential medicines from 36% to 60% and cut the pharmaceutical import bill from US$220 million in 2020 to around US$100 million by the end of next year.

The pharmaceutical industry has been prioritised under Zimbabwe's industrial recovery strategy because of its strategic importance to national health security and high potential for economic growth. The local pharmaceutical market is currently valued at approximately US$400 million.

"Since 2020, the local pharmaceutical value chain has experienced tremendous growth, with locally produced medicines rising from 15% to 36%, and capacity utilisation climbing from 12% to 51% in 2024," said Dr Muswere.

"The number of pharmaceutical manufacturers has increased by 56%, from nine to 14."

Zimbabwe's regulatory authority, the Medicines Control Authority of Zimbabwe (MCAZ), recently received Maturity Level 3 accreditation under the World Health Organisation's global benchmarking tool, signifying strong and reliable regulatory systems. This rating is expected to encourage further investment and growth in local drug manufacturing.

Additionally, exports from Zimbabwe's pharmaceutical sector grew by 15.6% between 2020 and 2024, rising from US$4.5 million to US$5.2 million, although imports continue to dominate the market.

The government's pharmaceutical revitalisation strategy aims not only to reduce costs and enhance accessibility of medicines but also to position Zimbabwe as a regional pharmaceutical production hub in the long term.