Understanding barriers to local pharmaceutical production in LDCs: A Ugandan perspective. Presented by Henry Zakumumpa, CARTA Research Fellow at Makerere University, School of Public Health in Kampala, Uganda.

1. Understanding barriers to local
pharmaceutical production in LDCs: A
Ugandan perspective
Henry Zakumumpa,
Makerere University, School of Public,
Kampala, UGANDA
zakumumpa@yahoo.com

2. BACKGROUND
• Despite the ‘Transition’ period, LDCs have not optimally utilized
this provision to:
a) maximize supply
b) Contribution to access to medicines.
• Ugandan pharma market is dominated by Asian imports which
account for over 90% of market share (About 10 local firms, 0.18% of GDP).

4. Methods
• In-depth interviews: (n= 36) Quality Chemicals, Kampala Pharma, Abacus Pharma,
• MedPharm, Rene Industries
• Key informant interviews (n= 24) : Uganda Pharma Assoc, UMA, PSF
• Document review Uganda policy instruments (Nat Health Policy, HSSP, NPSSP II)
• Analysis: Content thematic analysis.

5. Supply-side barriers
• Inadequate govt support ( tax waivers meagre, land tenure)
• Cost of credit (25-33% interest rates in Uganda, R & D costs unreachable)
• Cost of electricity (Uganda has one of the highest electricity prices,
• ARVs made in Uganda 20% more expensive than Indian imports)
• Import-intensive production models (APIs, HR, transport costs)

6. Demand-side barriers
• High poverty levels (1/4 of Ugandans under poverty line)
• Small market base (US$ 120 million in 2009 est. Uganda Mkt)
‘’If you are producing for Uganda it is a very small market.
But you find companies in India manufacturing for
the whole world’…’’

7. Barriers cont’d.
• Mismatch between demand and supply
(NCDs shift, disease trends)
“I am not sure of what area I should go into...if we should develop a product for cancer, am not sure of
what cancer. If we go for cholesterol, blood pressure…there are so many diseases which we know are
there but If we can’t quantify it, we cannot know how much opportunity is there commercially.”
• Donor-funded epidemic responses
(Global Fund, PEPFAR-determined procurements, Voluntary Pooled Procurement

8. A call to arms…
• Technology transfer ( CIPLA-Uganda model)
• Import restrictions for products which can be locally produced
• Leveraging regional markets (East African Community, SADC, COMESA)
• Govt can do more.. ( financing, industrial zones, tax incentives, procurement exclusivity)
• The political economy of under-development ‘You are poor because you are poor’

9. Asante sana!
Danke schon!