This presentation was delivered at the Global Forum 2019 in Africa parallel session on "Production Policies, Laws and Strategies including Trade Barriers" by Hetal Vithlani, Director - Prince Pharmaceuticals Limited, Mwanza (Tanzania).

1. Overview of Investments
in Pharmaceutical
Production in Tanzania

2. Pharmaceutical Industries in
Tanzania
There are 13 pharmaceutical industries in Tanzania
Only 6 pharmaceutical industries are active :
Mansoor Daya Chemicals Ltd – 1962
Keko Pharmaceuticals Ltd. – 1968 – Privatized (60%) – 1997
Tanzania Pharmaceutical Industry Ltd. – 1977 – Privatized (60%)-1995
Shelys Pharmaceuticals Ltd. – 1984
Zenufa Laboratories Ltd. – 2007
Prince Pharmaceuticals Ltd. – 2017

3. Population of Tanzania
Increase in Population from 10.1 million in 1960
to 55 million in 2018.
Life expectancy has increased from 43 years in
1960 to 62 years in 2018
Urban population has increased from 0.53 million
in 1960 to 14.3 million in 2016 and expected to
grow over 4%.

4. Pharmaceutical market size in
Tanzania
• Pharmaceuticals market in Tanzania is valued at
US $105 million in 2007
• Pharmaceuticals market in Tanzania is valued at
US $457 million in 2016
• Expected growth in next few years is at 10%

5. Opportunities of setting a
pharmaceutical plant in Tanzania
Tanzania is dependant on imported medicine , pharmaceutical products
by 80-85%
Only 15-20% of the total market is covered by the domestic
manufacturers
There are not any manufacturers for medical devices and surgical
textiles e.g. syringes, bandages
85%
15%

6. Benefits contributed by
pharmaceuticals industry sector
1. Has generated direct and indirect employment to
fellow Tanzanian.
2. The Government will generate various taxes e.g.
PAYE, SDL, corporate tax.etc
3. Creates a practical learning area for nearby
universities
4. Creates opportunities for other businesses
5. Increase in access for medicine in both rural and
urban areas at affordable prices

7. Support from the Tanzanian
Government
1. Single Window Registration: One Stop Facilitation through TIC
(Tanzania Investment Centre) for access to various services related to
permits, licenses and approvals.
2. Tax Incentives: 0% taxes and duties on imports of raw and
packaging materials. Capital expenditure in form of pharmaceutical
manufacturing machinery and equipment.
3. Corporate Tax Relief: Corporate Tax reduced to 20% for the first
two years of investment instead of 30% for new investments.
4. Elimination of VAT: Exemption of VAT on packaging and raw
materials produced specifically for use by the local manufactures of
pharmaceutical products.

8. Support from the Tanzanian
government
5. Elimination of various fees and levies: This year the
budget has eliminated 54 types of fees and levies to reduce
the cost of doing business and investment cost in the country
e.g. vaccines and biological USD 150; herbal medicines USD
150
6. TMDA support: Guidance to domestic pharmaceutical
manufacturers to achieve Good Manufacturing Practices
(GMP)

9. MSD Tender Model
•Special Preference for local products : Special
tenders given to domestic manufacturers by
Medical Stores Department for some products that
are being produced locally.
•Price Preference : A preferential margin of 15%
for all locally produced medicines in national
tenders.

10. Emerging Issues/ Barriers
1) VAT on raw materials for newly developed products
suggestion:update the newly submitted list.
2) Permits on importation of raw materials
suggestion:obtain import permits from TMDA only
3)High interest rates on loans
suggestion:provide a special fund with single digit interest
rates to TIB
4)Competition from imported products
suggestion: increase importation fees from 2% to 12% for
products which domestic manufacturers are capable to
produce