ZIMBABWE DRUG MANUFACTURERS PROTEST MATERIALS IMPORT TARIFFS

According to local reports, unidentified sources from Zimbabwe's drug industry association, the PMA, as well as a local drugmaker, have protested the country's discriminatory tariff structures on imported raw pharmaceutical materials. The sources claim that tariffs of between 5% and 15% on the materials apply to local companies, but exempt finished drugs supplied by foreign producers. Much of the blame is attributed to the impact of the growth of HIV/AIDS in the mid-1990s, which prompted health authorities to remove tariffs on imported finished drugs, which are mainly sourced from Indian companies. Local drugmakers now claim that unless tariff structures are amended, companies are likely to move to nearby countries.

The issue of the government's drug procurement has been controversial in recent months, despite authorities' recent pledges to block cheap drug imports. It nevertheless appears that the authorities may prefer to bolster the interests of state-owned drug production holdings, as opposed to equalising competition in the sector. Reports suggest that the desire to protect the HIV/AIDS product line of key state-owned drugmaker Varichem, while at the same time encouraging cheap imports of other antiretrovirals, will drive the government's strategy for the country's most severe health challenge.