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Africa’s pharmaceutical industry is entering a pivotal new phase as governments push to reduce dependence on imported medicines and build stronger local manufacturing capacity. Across the continent, policymakers are increasingly treating pharmaceutical production as a matter of health security, as well as an economic opportunity.
For decades, Africa has relied on foreign medicines, with more than 70% of the pharmaceuticals consumed in sub-Sahara imported from India and China. The COVID-19 pandemic raised awareness of the risks of dependence, disrupting global supply chains, as well as limiting access to treatments and vaccines. Now, further supply chain disruptions are reinforcing these concerns.
Strengthening domestic healthcare industries is part of a larger trend of African countries looking to diversify their economies. Mwigulu Nchemba, Prime Minister of Tanzania, told the Africa Forward summit in Kenya this month, “it is no longer time to export raw materials; our direction must be toward value addition”.
Tanzania is one of the countries leading the charge on medical production, quickly emerging as one of East Africa’s most ambitious pharmaceutical investment destinations.
Presenting the country’s 2026/27 health budget in Parliament, Health Minister Mohamed Mchengerwa outlined plans to expand pharmaceutical manufacturing, improve digital health systems, and strengthen healthcare delivery nationwide. The government says the program is aimed at reducing reliance on imported medicines while positioning Tanzania as a regional pharmaceutical hub serving East and Central Africa.
The eleven areas of focus defined by Tanzania align with broader African Union goals to increase local medicine production under initiatives such as the African Continental Free Trade Area and the Pharmaceutical Manufacturing Plan for Africa. Across the continent, leaders are realizing that Africa cannot sustainably depend on external markets for essential medicines, particularly as global aid budgets tighten and healthcare demands grow.
Tanzania’s approach has drawn attention because of its combination of political commitment, geographic positioning, and growing industrial infrastructure. Its position on the Indian Ocean, bordering eight countries in east and central Africa allows it to function as a gateway to the continent, providing access to over 700 million customers in the free trade areas of the East African Community and Southern African Development Community.
Industry observers note that “Tanzania is rapidly shedding its old economic skin, emerging as a pivotal trade and transportation gateway for not just East Africa, but the entire continent.” This has involved shifting focus toward becoming a key manufacturing and distribution gateway for pharmaceutical companies looking to expand across Africa.
The country is also building on a longstanding pharmaceutical tradition. Tanzania was home to East Africa’s first pharmaceutical factory. Established in Dar es Salaam in 1962, it created the foundation for domestic medicine production in the region. Today, the government is seeking to modernize and scale that legacy through industrial parks, investment incentives, and partnerships with private manufacturers.
Analysts note that Tanzania’s pharmaceutical ambitions come at a time when African healthcare markets are becoming increasingly attractive to global investors. The continent’s population is projected to surpass 2.5 billion by 2050, creating rising demand for medicines, diagnostics, and healthcare infrastructure.
International pharmaceutical companies, particularly generic drug manufacturers from India and Asia, are increasingly exploring partnerships and manufacturing opportunities across Africa. Tanzania’s expanding infrastructure and strategic location have made it one of the markets receiving closer attention.
The government has also paired its pharmaceutical strategy with broader healthcare reforms. Plans for the coming fiscal year include recruiting thousands of community health workers, expanding maternal healthcare services, strengthening referral hospitals, and integrating more digital technologies into healthcare systems.
Supporters say this wider healthcare investment creates a stronger ecosystem for pharmaceutical growth by improving distribution networks, increasing healthcare access, and supporting long-term demand for locally produced medicines.
Challenges remain. Africa’s pharmaceutical sector still faces financing constraints, regulatory inconsistencies, and competition from lower-cost imports. Many local manufacturers across the continent continue to struggle with access to capital, technology transfer, and internationally recognized production standards.
Yet momentum is clearly building, and Tanzania is increasingly positioning itself as a positive example of how African countries can strengthen pharmaceutical independence, attract investment and capitalize on strategic advantages and historical industrial foundations.
