Zim Aims to Halve Drug Import Bill by End of 2025

4 June 2025

By Charity Chikara

The Zimbabwean government has intensified efforts to build a robust local pharmaceutical industry, with the aim of reducing the national drug import bill by more than half by the end of 2025.

During the 15th Post-Cabinet Briefing, the Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, said Cabinet had received an update on progress made under the Zimbabwe Industrial Reconstruction and Growth Plan (2024–2025), with a particular focus on the pharmaceutical value chain.

“Cabinet received a noted update on the implementation of the Zimbabwe Industrial Reconstruction and Growth Plan as it pertains to the pharmaceutical value chains,” said Dr Muswere.

He explained that the pharmaceutical sector had been identified as a key priority area within the broader national industrialisation framework due to its potential to drive import substitution and create local employment.

“The pharmaceutical sector is being identified as a key priority area within the Zimbabwe Industrial Reconstruction and Growth Plan, giving it significant growth and import substitution potential,” he said.

The government has set a strategic target to increase the proportion of locally produced essential medicines from 30% to 60% by 2025. In parallel, the national medicines import bill is expected to drop from approximately US$220 million in 2020 to around US$100 million by year-end 2025.

Dr Muswere noted that the pharmaceutical market was valued at US$400 million in 2023. Since 2020, the local value chain has witnessed strong performance, with the share of locally produced essential medicines rising from 15% to 36%, while capacity utilisation surged from 12% in 2020 to 51% in 2024.

“We are seeing a strong recovery and significant growth in local pharmaceutical production. Capacity utilisation has improved, and more players are entering the space,” said Dr Muswere.

The number of registered local pharmaceutical producers grew from 9 to 14 representing a 56% increase amid growing investor confidence and policy support.

Although pharmaceutical exports remain lower than imports, there was a 15.6% increase in exports between 2020 and 2024, with figures rising from US$4.5 million to US$5.2 million.

“The sector has also seen an influx of new entrants. Our import management strategy is bearing fruit, with two indigenous pharmaceutical retailers successfully transitioning into manufacturing,” Dr Muswere highlighted.

Zimbabwe’s regulatory capacity has also made strides. The Medicines Control Authority of Zimbabwe (MCAZ) achieved Maturity Level 3 under the World Health Organisation’s Benchmarking Tool, a major milestone confirming a stable and well-functioning medicines regulatory system.

“We are proud that the Medicines Control Authority of Zimbabwe has achieved Maturity Level 3 of the WHO Benchmarking Tool,” said Dr Muswere.

“This reflects our commitment to ensuring that medicines in Zimbabwe are regulated in line with global standards.”

To sustain these achievements, the government has pledged to continue providing support to the National Pharmaceutical Company (NATPHARM), including guaranteeing consistent uptake of locally produced medicines across public and private sectors.

“To guarantee continued growth of the pharmaceutical value chain, government will provide adequate funding to NATPHARM and ensure sustained uptake of locally produced drugs by public agencies as well as the private sector,” he said.

Cabinet also announced the establishment of a Pharmaceutical Revolving Fund aimed at availing affordable financing to industry players.

“A Pharmaceutical Revolving Fund will be established to provide affordable financing for the industry,” said Dr Muswere.

He further noted that the government would reinstate VAT zero-rating on pharmaceutical products to reduce operational costs for manufacturers and promote affordability.

“Furthermore, the VAT zero rating on pharmaceutical products will be reinstated,” he said.

In efforts to enhance quality assurance and reduce dependency on imported drugs, Zimbabwe will invest in local drug testing infrastructure.

“Reliance on drug imports will be reduced by establishing local drug testing capabilities,” added the minister.

To further bolster funding for local drug production, the Cabinet also prioritised implementation of the Sugar Content Tax, which will support the manufacturing of essential medicines.

“The Sugar Tax will also be prioritised to enhance financial support for the manufacturing of essential drugs,” said Dr Muswere