INDIAN DRUGMAKERS REPORTED PLANNING UGANDA INVESTMENTS

According to local press reports, a number of Indian drugmakers are currently preparing to establish outsourced manufacturing plants in Uganda. However, industry sources claim that the country's regulatory framework and high entry fees are discouraging potential investors.

Indian industry representatives have criticised the Ugandan National Drug Authority's slowness to grant licences for drugmakers, mainly those producing HIV/AIDS generics, although many companies are certified according to the World Health Organisation's list. Despite local claims that existing legislation is intended to prevent penetration by sub-standard and illicit drugs, entry fees are reportedly high. A license for a single drug in Uganda can cost producers some US$1,000 in the first year, and US$300 annually thereafter. Factory inspection fees also total some US$4,000.

Nevertheless, some Indian producers appear undeterred, with leading generics maker Cipla announcing a local alliance with Ugandan firm Quality Chemicals in November. The deal was expected to produce ARV treatments at a 50% discount compared to current local selling prices. Notably, Uganda is one of the few Sub-Saharan African countries to have reduced AIDS infection rates over the last decade.