Cooperation
Uganda

Ugandan Government procurement of medicines: cooperation with Dei as an element of pharmaceutical safety strategy

By Rukia Rashid
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Uganda's healthcare system (hospitals, pharmacies, and patients) requires billions of shillings worth of pharmaceutical products to be imported every year. However, the government believes that the plant in the suburbs of Kampala can change the situation.

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In early July 2026, the Dei BioPharma production complex in Matugga, Wakiso district, was visited by senior representatives of the Ministries of Finance and Health, indicating the resumption of government support for the project. The authorities hope that he will increase the production of local medicines, reduce dependence on imports and create thousands of jobs.

The delegation was led by Dr. Diana Atwine, Permanent Secretary of the Ministry of Health, and Dr. Ramathan Ggoobi, Secretary of the Treasury. The mission included representatives of the National Drug Control Administration and the National Medical Warehouse, who had to evaluate the project, in which the state had invested more than 700 billion Ugandan shillings (about $190 million). The purpose of the visit is to assess the return on investment and the company's prospects in the Ugandan pharmaceutical industry.

Following the examination, Dr. Ggoobi noted that he was impressed by what he saw. He stressed that the society is discussing the seriousness of the intentions of the company's founder, Dr. Matthias Magoola, and his ability to produce the claimed medicines. The official also expressed confidence that the country is moving in the right direction in the development of industry and knowledge.

Currently, most of Uganda's medicines are imported, which requires significant foreign exchange costs and makes the country vulnerable to disruptions in global supply chains.

Dei BioPharma has already started production of about nine generics, including paracetamol and oncological capsules. The company plans to expand its product range with insulin, vaccines, and drugs for the treatment of cardiovascular diseases. According to Dr. Ggoobi, this will allow the company to meet almost half of Uganda's demand for imported medicines. This will not only reduce import costs, but also keep investments in the country, creating new jobs. The authorities report that thousands of young people are employed in production. Dr. Ggoobi noted that further government funding depends on the accountability of the company. Since the government is a co-investor and the owner of a stake in the project, the company's activities are regularly reviewed by the Auditor General. A committee of six financial and scientific experts has also been established, approved by the head of state, which will consider applications for funding.

The transformation of the Ugandan economy is impossible without investments in high-value-added industries that exceed traditional agriculture. For the Ministry of Health, this project is important not only from an industrial point of view, but also from a social point of view, as it supports the initiative to increase the availability of local medicines. Dr. Atwine assured that the Ministry will purchase Dei BioPharma products along with products from other local manufacturers within the framework of the «Buy Ugandan — Develop Uganda» concept. This will create stable domestic demand during the period of production growth. She stressed that registration by the National Drug Control Administration is only the first step. In the future, it is necessary to undergo WHO prequalification and receive recognition from other international regulators, which will allow products to be sold throughout the African continent and beyond. Dr. Atwine also warned that the company is just starting its journey and it will have to increase its staff, obtain permits for new products, establish local production of pharmaceutical substances and develop a research base.

The company's founder, Dr. Matthias Magoola, says that the business invests heavily in research. According to him, the U.S. Patent and Trademark Office has filed more than 100 patent applications for treatments for cancer, HIV, malaria, tuberculosis, sickle cell anemia, diabetes and Alzheimer's disease. Among them is a patent for cancer immunotherapy, published in February, which, according to the company, targets genetic mutations common to different types of tumors, rather than adapting treatment to the genes of a particular patient. The company claims that this approach could eventually reduce the cost of treatment to below $100, compared with over $500,000 for some existing therapies. Despite the optimism, serious infrastructure problems remain. Dr. Magoola said that the plant is currently able to operate only three or four of the eight completed production units due to a shortage of electricity. Up to 80 megawatts of electricity will be required to operate the enterprise at full capacity. Another obstacle is water. The plant consumes up to two million liters of water per day, and demand is expected to grow, but it is still not connected to the network of the National Water Supply and Sewerage Corporation.

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