President Yoweri Museveni has launched Piston Medical Ltd, a UDB-funded pharmaceutical manufacturing plant, a boost in essential medical products for a regional market currently reliant on $78 million in imports.
The plant which was funded with the support of Uganda Development Bank (UDB) will produce essential intravenous fluids and essential drugs, thus reducing Uganda’s reliance on imports and strengthening the country’s pharmaceutical sector.
In his speech, the President lauded Uganda’s private sector for venturing into industrialization.
“I am very happy to see Ugandans venturing into industrialization. This is the socio-economic transformation we keep talking about. That’s why I always emphasize that you should engage in production not just for consumption but also for income,” President Museveni said.
The President also highlighted Uganda’s key economic sectors, including commercial agriculture, manufacturing/ artisanal work, services, and ICT, noting that industrialization is essential for economic growth.
He commended UDB for providing affordable credit to local businesses.
“Thank you for doing your work. The money belongs to the government, and you lend it to our people. We shall continue injecting funds into UDB to ensure our people access capital and do good work,” he said.
Speaking at the launch, Benjamin Kiiza, the Chief Executive Officer of Piston Medical Limited praised Uganda’s industrial progress and highlighted the significance of government policies in supporting local manufacturers.
He further emphasized the importance of local production and economic stability in fostering investment.
“We welcome you to Piston Medical. Our journey in the medical industry began as a distributor, but in 2019, we decided to venture into manufacturing. Before proceeding, we conducted a study in Rwanda, Burundi, Kenya, Tanzania, and South Sudan to assess market viability. That research gave us the confidence to move forward,” Kiiza said.
He noted that Piston Medical Limited is pioneering in sterile manufacturing within the region.
“We are the first in the region to produce large-volume and small-volume parenteral solutions. We feel like ground breakers, bringing these essential products to our nation,” he stated.
Beyond pioneering in the medical space, Piston Medical Ltd has also created socioeconomic impact through creation of jobs. The enterprise currently employs 100 people on top of other indirect jobs.
Mr. Kiiza also acknowledged the financial challenges faced by manufacturers and the role of patient capital in sustaining long-term investments.
Africa’s demand for packaged medicines is worth $18 billion a year, but 61% of these goods are imported and 36% is locally produced and not traded, according to estimates by McKinsey. Just 3% of demand is met by intra-African trade.
Countries across Africa, a continent that struggled to gain equal access to vaccines during the Covid disruption and one that imports the majority of its packaged medicines from abroad, know all too well the importance of a strong domestic pharmaceutical industry and trade.
These gaps highlight the role of development financing institutions such as UDB in derisking businesses that would otherwise struggle to secure affordable, long-term and patient capital.