THE setting up of a revolving fund to grow the pharmaceutical industry is facing further delays as resources will only be allocated in the 2026 National Budget, a government official has said.
The delay comes amid revelations the sector faces a US$45 million funding gap.
The Pharmaceutical Revolving Fund will recapitalise local pharmaceutical manufacturers, operating at half of their capacities.
However, it remains in the policy stage, raising concerns about the slow pace of implementation.
Launched last year, the Zimbabwe Industrial Reconstruction and Growth Plan outlines strategies to revive Zimbabwe’s industrial sector, including the introduction of a revolving fund to reduce the reliance on imports to bolster local production.
Industry and Commerce secretary, Thomas Wushe, said the fund would only be funded in the 2026 National Budget.
“We are just waiting for the new budget consultations,” he said, when asked about the fund.
The delay means that pharmaceutical manufacturers will wait another year before accessing the much-needed financial support.
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This delay has sparked frustration among stakeholders in the pharmaceutical industry, who view the fund as critical in recapitalising their businesses and increasing production capacity.
Without such an intervention, the sector will continue to underperform, leaving Zimbabwe heavily dependent on imported medicines and medical supplies.
“Industry requires funding of approximately US$45 million to enhance compliance with current good manufacturing practices and to capacitate the sector,” Pharmaceutical Manufacturers Association chairperson Shepherd Mudzingwa said.
He warned of dire consequences for the sector if government failed to prioritise procuring from local manufacturers through NatPharm.
“Increased production of affordable, high-quality medicines will not only reduce the country’s dependency on imports but also contribute to GDP (gross domestic product) growth, create employment opportunities and reduce trade deficits,” he said.
He called for the need for investment in research and development to create innovative products tailored to the region’s disease burden.
“By investing in research and development, Zimbabwean manufacturers could position themselves to expand into regional and international markets,” Mudzingwa said.
“In addition to the fund being operationalised, other measures, such as increased government procurement through NatPharm, reviewing the products on SI 122 of 2017, and offering tax incentives or subsidies, will significantly boost local production of medicines.”
He also stressed the importance of access to foreign currency for procuring raw materials and capital equipment, along with policies that promoted exports and encouraged investment in local manufacturing.
“Developing a local supply chain for active pharmaceutical ingredients and other raw materials will reduce reliance on imports and mitigate global supply chain disruptions,” Mudzingwa said.
He urged government to open lines of credit to support manufacturers to enable them to meet local demand.
