Uganda’s herbal medicine faces tough market hurdles

During the Covid-19 pandemic, Uganda's locally manufactured herbs achieved a groundbreaking breakthrough. While many drugs on the market failed to provide maximum relief from the virus, a locally manufactured natural remedy, Covidex, emerged as a beacon of hope, healing countless individuals.

This success story highlighted the potential of Uganda's local pharmaceutical sector, showcasing that with the right support and investment, industries focused on natural remedies can thrive and make a significant impact in times of crisis. According to Prof Patrick Ogwang, the managing director of Jena Herbals Limited, the local pharmaceutical industry in Uganda faces several challenges.

One of the most pressing issues is that nearly 90 percent of the medicines sold in Uganda are imported. Additionally, all of the active ingredients required to make medicines are also imported. This means that the country lacks control over the production of its medicines.

"If our borders were to be closed today, many drugs would not be available in the country because nothing is originally made here," Professor Ogwang explained. "Moreover, maintaining a high-quality pharmaceutical industry is very expensive. You need qualified professionals, pharmacists, chemists, doctors and they come at a high cost."

Prof Ogwang emphasized that routine testing is another essential but costly aspect of maintaining a local pharmaceutical industry. Testing the quality of water, plants, and every ingredient used in production is vital. The cost of utilities like electricity and water, which are essential for manufacturing medicines, is also a significant challenge in Uganda, as they remain prohibitively expensive.

In addition to these financial hurdles, the regulatory environment also presents obstacles. But, there are still delays in approving new drugs by the National Drug Authority (NDA). According to Professor Ogwang, submitting a dossier or application for drug approval can take up to a year. During this time, companies must pay rent, employee salaries, and other operational costs, often with no guarantee of approval.

"If you submit an application for approval, it can take one whole year. In that year, you're paying rent, you're paying workers, and you're waiting," he said.
"There is a clear need for improvements in the efficiency of this process."

Prof Ogwang emphasized that by developing a robust local pharmaceutical industry, Uganda can reduce its reliance on imports, improve access to essential medicines, and contribute to global health resilience, particularly in times of crisis. He suggested that Uganda could focus on natural and herbal medicines, as the country has a unique advantage in this area.

“In Uganda, any plant can grow here,” he noted. Additionally, Uganda possesses a wealth of traditional knowledge, which can be leveraged for producing effective remedies. This self-sufficiency would be valuable during crises when borders are closed, enabling Uganda to continue producing medicine without the need for imports.

However, Prof Ogwang acknowledged the challenges young companies face. One: Government hospitals currently do not purchase herbal medicines, which he believes is detrimental to the industry.

“We need the government to start buying herbal medicines to include them in hospitals because Ugandans are already using them,” he stated. 

He highlighted that when Ugandans visit pharmacies, they often buy products like Jena cough syrup or other remedies for illnesses such as Covidex. Yet, these products are rarely stocked in government hospitals. He pointed out that money spent on foreign medications leaves the country, but if the government were to purchase locally-produced medicines, some of that money would stay in Uganda’s economy.

Another challenge, according to Prof Ogwang, is the prevailing bias against African-made products.
“There is a perception that anything made in Africa does not work,” he explained. He gave the example that when someone goes to a pharmacy with a cough, they are more likely to be prescribed Benylin, a European product, than a locally-made remedy like Jena cough syrup.

This bias extends to health workers, who are often hesitant to recommend local alternatives. However, Prof Ogwang acknowledged that this is partly due to the training these professionals receive.
“What you are taught is what you remember,” he said, noting that Uganda’s medical and pharmacy schools focus primarily on Western medicine.

To address this, he proposes integrating traditional medicine into the curriculum at schools, nursing schools, and pharmacy programmes. This would help shift the mindset of future healthcare professionals toward valuing and promoting local alternatives.

Prof Ogwang shares that accessing the market for local herbal medicines is challenging due to stiff competition from foreign products. He emphasizes the importance of partnerships, citing the company’s previous collaboration with Mediworld, an African pharmaceutical distributor. This partnership has been instrumental in ensuring that their medicines are now available across Uganda, from Arua to Kabale to Moroto and beyond. "Thanks to Mediworld, our medicines are now accessible throughout the country," he stated.

Succeeding in a competitive market
Prof Ogwang highlightes that the best approach is to excel in whatever one does, ensuring that herbal medicines are of the highest quality, effective, and safe. "You have to be the best at whatever you produce," he advised. Furthermore, continuous research and innovation are critical to staying ahead in the market. "We work hard to improve our products to be the best in the line," he adds.

Despite the local efforts, Prof Ogwang points out that foreign medicines are often imported and available in hospitals. "If you go to a hospital, you will find foreign medicines, imported from other countries, but you won't see ours," he explais. To tackle this challenge, he emphasized the need for continuous research and innovation, alongside educating the public about the benefits of local products.

Jena products have also reached international markets, although not officially. "If you go to South Africa or America, you will find Jena products there, bought from Uganda and taken abroad," he notes. 

However, the company is working towards officially registering its products in other countries. Currently, they have a partnership with a company in Botswana to register their products there and expand their reach to other nations. The process is ongoing, with some necessary documentation still pending from the NDA).

The pharmaceutical industry is notoriously expensive, but Prof Ogwang is optimistic about the future. His company is currently constructing a modern facility at the Soroti Industrial Park, which will play a crucial role in supporting its growth and expansion.

The project, however, is not without its challenges. It will cost nearly Shs14b. 
"But with the support we have received from the government, we’re now about 50 percent through. We hope the government can release the remaining funds so that we can complete the facility, get it certified, and start exporting our products," Prof. Ogwang says.

Pricing herbal medicines
Prof Ogwang reflects on his company’s journey during the Covid-19 pandemic, sharing insights into their commitment to both innovation and accessibility.

"During the pandemic, we had one of the best medicines in the world, Covidex. Despite its effectiveness, we kept the price at just Shs3,000 because we wanted to ensure that Ugandans could access it," he explains.

He gestures towards a product on the table and continues, "This Jena Cough Syrupis priced at just Shs4,000 or Shs5,000. When you compare that to a similar product from Europe, which can cost as much as Shs40,000, that is nearly ten times more expensive. We keep the needs of Ugandans in mind and strive to keep our prices affordable."

However, Prof. Ogwang clarifies that "affordable" doesn't equate to "cheap." "While we work hard to make sure our products are accessible, we also need to maintain a sustainable level of profit. After all, no business can operate without some profit; otherwise, it risks collapsing," he says.

He also shares a message of encouragement for students and young researchers. "The door is open for other medicine students who want to join us. The best way to learn is to work alongside others partner with them. We encourage young researchers and manufacturers to join us in the local pharmaceutical industry."

He mentions that NDA actively facilitates learning opportunities for aspiring professionals. "Every year, they send people to learn from us."

Finally, Prof. Ogwang extends an invitation to other herbalists. "We welcome herbalists who are working on a smaller scale to come and see what we are doing at Jena Herbals Limited. We also invite them to use our facility to manufacture their medicines, fostering collaboration and growth in the local pharmaceutical sector."

One of the greatest achievements of the local pharmaceutical company is its support for local farmers. 
According to Prof. Ogwang, they source raw materials from various parts of Uganda. In Kabale, for example, they procure Artemisia and other plants used in producing weight loss medicine. In the Mbarara region, they buy eucalyptus oil for their medicines. In Teso and Karamoja, they source Zangsozaila and Wabugia, while in Arua, they purchase honey.

This demonstrates how the country benefits from the company’s operations. It is not only farmers who gain from this arrangement but also other industries, such as the packaging industry. For example, Luka Plastic, a Ugandan company, supplies all of their packaging materials. In addition, the company employs over 100 Ugandans directly, with more than a thousand others indirectly employed, including those who supply and sell the medicine or provide raw materials.

One of the key points is that the company doesn’t import any materials for its products; they buy everything locally. With the current capacity at their Luzira facility, they can produce up to 2.5 million units a year. However, when the new Soroti facility comes online, they will be able to produce up to 10 million units annually.

In terms of employment, the company currently employs around 130 people in marketing, sales, production, and other departments. Additionally, they engage professionals like accountants, pharmacists, chemists, and lawyers, creating job opportunities.

However, climate change poses a serious challenge, especially in Uganda and Africa. For example, during the recent dry season, it became difficult for farmers to produce enough raw materials. As a result, prices for some materials, including ginger, rose from Shs7,000 to Shs25,000 per kilo, forcing the company to import from Tanzania. This fluctuation affects the company’s production capacity.

To address this, farmers must adopt irrigation systems to ensure a steady supply of materials year-round. Jena Herbals has also taken proactive steps by purchasing over 1,000 acres of land, where they are planting some of the key raw materials. This will ensure a stable supply of materials if farmers are unable to meet demand.

Earning from herbs
Farmers earn between Shs7m to 10m from selling herbs. Sometimes, what you take for granted can turn out to be profitable. One such opportunity is growing herbs, which, when consistently supplied to local pharmaceutical industries, can generate significant returns. 

Dr Rajab Mutumba, the chief executive officer of Jena Herbals Limited, shares an example of a farmer in Kabale who supplies Artemisia and Rumex regularly and earns between Shs7 million and Shs10 million each month.

In addition to herbs, farmers who supply honey to the company can earn around Shs26 million per month, further illustrating the strong financial potential for local farmers. The pharmaceutical industry offers good growth prospects, high returns on investment, and substantial benefits for local communities.

Imagine if we were to begin exporting these products to other African countries. Farmers would benefit even more by selling larger volumes to Jena Herbals. Instead of earning Shs7 million a month, they could potentially earn up to Shs70 million for a year," Dr Mutumba explained.

For farmers to collaborate with Jena Herbals, the process starts with product testing. "First, we ask farmers to bring in a sample for quality testing. Beyond product quality, we also assess the farmer’s trustworthiness. Sometimes, after passing the initial test, farmers may switch to supplying fake products. Integrity is crucial in this business; we seek to work with farmers who are honest and reliable," he added.

While some farmers may lack the necessary capital to get started, Jena Herbals provides support. For instance, the company advanced Shs14 million to a farmer in Bushenyi to help them supply quality products.

To ensure farmers can produce high-quality products, Jena Herbals offers ongoing training. This benefits both the farmers and the business. The company also assists with equipment needs.

According to Mr Bhaveshkumar Ghodasara, the managing director at MediWorld Pharma Africa Limited, a company of Indian origin that specialises in the distribution of pharmaceuticals across Africa and beyond, Uganda has significant potential to manufacture medicines that can compete on a global scale. 

He shared that one of the reasons for their partnership with Jena is the company's strong commitment to quality. "Jena is highly conscious about quality. That is why we received a tremendous response from the market," he explained. 

Mr Ghodasara further emphasized that the acceptance of Jena's products has been overwhelmingly positive. "Jena’s quality has been appreciated by everyone who has used it, offering high quality, better efficacy, and safe drugs. People have appreciated it."

However, Mr Ghodasara acknowledged some initial challenges related to accessibility. "While the products were well-known and of high quality, there were accessibility issues," he said.

The company distributes products across Uganda to its business partners, ensuring widespread availability. Looking at the current landscape, Mr Ghodasara notes that most drug shops and pharmacies carry these local Herbal pharmaceutical products. 
He pointed out the ongoing shift from conventional medicine to herbal alternatives, acknowledging both the advantages and disadvantages of each.

"These herbal products are very effective, and they offer safety due to their natural ingredients. As a result, the acceptance has been very positive."

One area for further improvement, Ghodasara suggests, is the need for scientific studies conducted in Uganda to compare the efficacy and safety of herbal medicines against conventional drugs," he concludes.