Tanzania to Transform Mloganzila into National Health and Pharmaceutical Investment Hub
Dar es Salaam – The government has announced plans to develop Mloganzila into a national health and pharmaceutical investment hub, following presidential directives to concentrate major health-sector investments in the strategic location.
Health Minister Mohamed Mchengerwa revealed that the government has received instructions to guide investors to Mloganzila, where extensive land is available for large-scale pharmaceutical and medical manufacturing facilities.
"We have received clear directives to direct investors to Mloganzila because we have a very large area there," Mchengerwa stated. "We expect to sit down with the Ministry of Education, the leadership of Muhimbili and Mloganzila to agree on how we can develop it."
Creating a Specialized Health Sector Cluster
The government aims to replicate successful models from other countries where specialized industrial clusters are developed around a single sector. Under the ambitious plan, Mloganzila would be transformed into a comprehensive health center hosting research institutions, training facilities, and factories for medicines and medical devices.
The integrated approach combining education, research, and production would allow students to merge academic learning with practical exposure to modern technology, while supporting innovation and skills development in the health sector.
Part of Broader Pharmaceutical Strategy
This initiative forms a key component of the Pharmaceutical Acceleration Strategy, designed to fast-track investment in local drug manufacturing by eliminating structural bottlenecks, including delays in licensing, regulatory approvals, and taxation decisions.
Industry Calls for Market Protection
However, industry stakeholders emphasize that policy reforms must extend beyond infrastructure development to address market access and protection challenges.
Tanzania Pharmaceutical Manufacturers Association (TPMA) Chairperson Bashiru Haroon highlighted that many local drug factories are operating under heavy debt as imported medicines continue to dominate the domestic market.
"Our market has become a dumping ground for imported medicines that can be produced locally," Haroon said. "This has weakened domestic industries, yet we currently contribute only about 10 percent of the national medicine supply."
Despite improvements in quality and compliance, doubts about local manufacturers’ capacity persist, limiting their participation in public procurement processes.
Reforms Needed in Procurement System
Haroon called for comprehensive reforms at the Medical Stores Department (MSD) to ensure procurement systems favor qualified local manufacturers.
"The entire procurement system for medicines should be aligned with a protection policy for domestic industries," he emphasized, adding that such measures should be incorporated into the Public Procurement Act and supported by clear regulatory frameworks.
Manufacturers also stressed that local investors should receive priority in incentive schemes under the Tanzania Special Economic Zones Authority (TISEZA). Domestic manufacturers currently face a lengthy chain of taxes, levies, and fees at the start of production, costs that often delay or discourage investment.
Government Acknowledges Concerns
Minister Mchengerwa acknowledged concerns around protection and incentives, confirming that the government has begun reviewing relevant policies. He emphasized that strengthening local manufacturing represents both an industrial objective and a public health priority.
The minister noted that substandard and expired medical products remain a risk to public health. Promoting quality local manufacturing would help lower medicine costs, stimulate investment, and improve overall health security across Tanzania.
