NEW SOUTH AFRICAN LAW COULD HIT ZIMBABWEAN DRUG EXPORTS

According to local sources, South African laws on the transport of pharmaceuticals by road or rail is damaging Zimbabwe's drug export industry. One Zimbabwean company claims that a major export contract is under threat, owing to the prohibitive cost of air freight.

South Africa recently implemented the law in order to stem parallel imports from less regulated markets, a development that should benefit leading foreign manufacturers. However, the law is reportedly eroding Zimbabwean firms' capital base due to the limited access to foreign currency caused by the measure.

Meanwhile, Zimbabwean sources claim that the countries have begun a "dialogue" on South Africa's Medicines and Related Substances Control Act, a key piece of legislation that has caused controversy in the country. However, foreign companies are unlikely to welcome any adjustments in the law's provisions, which are regarded as stringent in regional terms.