Minister rallies Indian pharmaceutical firms on local production

Indian pharmaceutical firms have been asked to collaborate with Ugandans to establish manufacturing plants for medical products such as consumables and supportive equipment, locally.

The minister of state for primary health, Margaret Muhanga, said for Uganda to grow her pharmaceutical industry, collaborations between the importers of pharmaceuticals and the local firms will be key.

“If you are taking raw materials from here to India and then export back, it is quite more tedious than establishing a factory here and producing locally. So, look out for local partners and collaborate to transform the imports into a manufacturing plant here,” she said.

She was speaking at the official opening of the 2023 Uganda Pharma & Healthcare, a pharmaceutical, medical and healthcare exhibition in its second edition at UMA showgrounds Lugogo, Kampala on Friday.

Organised by the Uganda Pharmaceutical Society, the three-day exhibition attracted various local and international health companies exhibiting innovations and products in the sector.

Fifteen companies from India participated, under the stewardship of the Federation of Indian Chambers of Commerce and Industry (FICCI).

Muhanga said that besides the tax holiday for investors with over $100m (about sh364b), government is working to reduce tariffs, especially on electricity, for manufacturers, to lower the cost of production.  

She also noted the companies will leverage the available human resource from the energetic youth and the market of over 170 million people in the East African Community.

The minister highlighted that Uganda has made strides in manufacturing basic medical equipment, with some factories being set up, but there is a need for expansion of the industry.

She said Uganda needs more Indian companies setting up hospitals to reduce the costs involved in medical tourism.

Over the years, medical tourism, especially to India, has become a mainstay for Ugandans with serious illnesses.

According to the finance ministry, the Government spent over US$123m (sh455b) on the treatment of its employees in India alone in 2016. That year, over 8,200 people applied for medical visas at the Indian High Commission in Kampala.

Muhanga had earlier engaged executives of the 15 companies at the Indian High Commission office in Nakasero, Kampala.

Collaboration in traditional medicine

The Indian high commissioner to Uganda, Shri A Ajah Kumar, said since India is one of the most preferred destinations for Ugandans seeking specialised health care, bringing the expertise and hospitals close (in Uganda) would reduce the costs for them.

He noted that Indian-led companies with a manufacturing base in Uganda, such as Abacus Pharma, Cipla Quality Chemicals Limited, have helped to cut the cost of medical supplies, and are a good example for importing companies from India.

Commending the Ugandan government for a conducive environment, Kumar said trade between India and Uganda is dynamic, full of ability and remains "a key pillar of our bilateral relations".

The bilateral trade has been growing steadily for the last decade, and stood at more US$840m (sh1.7 trillion) last year.

Kumar also vouched for co-operation between Uganda and India in the development of traditional knowledge and medicines.

“For the last eight years, India has been focusing on traditional medicines. We are giving huge emphasis to our traditional medical system called Ayurveda, one of the strongest. Uganda has got its own traditional medical system. So we can explore the possibility of co-operation between these two areas,” he said.

Dr. Pamela Achii, the Uganda Pharmaceutical Society president, said exhibitions help the country to benchmark on the technology as it strives to advance its pharmaceutical sector.

Deepti Pant, the FICCI regional director for Africa, Middle East and South Asia, said that the total medical consumables into the EAC is over $250m (sh909m) per annum, which indicates investment and market potential for firms which set up plants in Uganda.

Photo caption: (L-R) Deepti Pant, the Honorary advisor for FICCI Uganda, Trushar Upadhyay, minister of state for primary health Margaret Muhanga, and Indian high commissioner to Uganda, Shri A Ajah Kumar, some executives during a meeting pharmaceutical companies from India. (Photo credit: Indian High Commission)