Business 17 September 2026 Nile Post
Museveni Advisor Champions Local Medicine Procurement for Economic Growth
A senior presidential advisor is urging the Ugandan government to increase its procurement of locally manufactured medicines. This policy shift aims to bolster the domestic economy by creating jobs, saving foreign exchange, and strengthening Uganda's industrial capacity. Source: https://nilepost.co.ug/news/371528/museveni-advisor-calls-for-more-government-procurement-of-locally-made-medicines
Moses Byaruhanga, Senior Presidential Advisor for Political Mobilisation, has strongly advocated for a greater share of government medicine procurement to be directed towards Ugandan manufacturers. He argues that this approach is key to fostering job creation, conserving valuable foreign exchange, and building a robust local industrial base.
Byaruhanga’s remarks came during a recent meeting with leaders from the Uganda Pharmaceutical Manufacturers Association (UPMA) and the State House medical team. The discussion focused on the progress and challenges within the government’s initiative to support domestic pharmaceutical production.
Recalling discussions from 2015, Byaruhanga noted that at the time, the National Medical Stores (NMS) procured only 5-10% of its medicines locally, despite a significant budget. Manufacturers cited intense international competition, particularly from Indian and Chinese firms benefiting from economies of scale, as a major hurdle. In response, President Museveni in 2016 directed that locally manufactured medicines be prioritized through domestic bidding.
This directive has yielded substantial results, with local procurement by NMS rising from approximately 5% to 60% by the 2024/25 Financial Year. This increase has occurred alongside a considerable expansion of the NMS budget, now nearing $200 million.
However, Byaruhanga highlighted emerging issues that need addressing to sustain this progress. He pointed out that the list of eligible locally procurable pharmaceutical products has remained stagnant at 37 for nearly a decade, despite increased local manufacturing capacity. He stressed that the President’s directive was not meant to limit this list.
Concerns were also raised about off-take agreements potentially creating monopolies. Byaruhanga suggested these agreements should instead encourage investment in new, locally unmanufactured products, ensuring fair competition among Ugandan firms.
UPMA representatives welcomed the dialogue, emphasizing the industry’s significant investment, employment figures, and contribution to other local sectors. They echoed the call to expand the list of procurable medicines and to review the use of off-take agreements.
Byaruhanga assured UPMA that issues related to taxes and regulatory costs on imported manufacturing equipment would be discussed with the Uganda Revenue Authority and the Uganda National Bureau of Standards. He also announced the establishment of a dedicated pharmacy desk at State House to facilitate ongoing engagement with the pharmaceutical sector.