Rédaction Africa Links 24 with Busein Samilu
Published on 2024-01-30 09:28:25
In response to a recommendation by a Cabinet sub-committee, the government has decided to invest $600 million (Shs2.3 trillion) in a major drugs and vaccines manufacturing facility in Matugga, Wakiso District. Last month, a total of Shs77.6 billion was disbursed to Mr. Mathias Magoola’s Dei BioPharma Ltd to accelerate the production of essential drugs such as antimalarials, cardiovascular drugs, and medications for diabetes and hypertension, with mass production set to commence in May of this year. During a meeting with Mr. Magoola, the government promised to acquire a stake in the company and release the required funds in phases. The initial disbursement was intended to ensure the company’s financial stability following a partnership agreement between the Government of Uganda, Equity Bank, and Dei Group International.
Dei Group International is a sizable African conglomerate with interests spanning agriculture, technology, medicine, and research. According to sources close to senior officials in the Ministry of Finance Planning and Economic Development, the government bail out was necessary due to financial challenges experienced by the “life-saving” company. As confirmed by Dr. Monica Musenero, the Minister of Science, Technology and Innovation, the government is acquiring a stake in the vaccines factory and providing support to Mr. Magoola’s company. In the Shs3.5 trillion supplementary budget passed by Parliament in December, Dei Pharmaceuticals received Shs77.6 billion as initial government investment in the vaccines facility.
In an interview with the Daily Monitor, Mr. Magoola confirmed the government intervention and acquisition of undisclosed shares in his company. He revealed that the company is no longer experiencing financial difficulties and expressed gratitude to the government and President Museveni for supporting the project. The $1 billion facility was inaugurated on July 6, 2021, and was launched by President Yoweri Museveni and then Kenyan Vice President (now President) William Ruto.
The facility plans to produce a variety of essential drugs, including vaccines for diseases such as cancer and malaria. The National Drug Authority (NDA) will inspect the facility’s Generic Section and issue Mr. Magoola with a Certificate of Suitability before mass production begins in May. Upon full completion, the vaccines facility is expected to manufacture all forms of essential drugs, including various vaccines and other biological solutions. Construction of the facility is currently 60 percent complete, with mass production set to commence after a three-month trial period. According to Mr. Magoola, the facility will produce a range of essential drugs and meet global quality standards.
