Govt to inject over Shs570b into private vaccine factory
Mr Mathias Magoola (right) speaks to the minister for Science and Innovation, Dr Monica Musenero (2nd right), and other officials at Dei Biopharma manufacturing facility in Matugga on March 22, 2023. PHOTOS/SYLIVIA KATUSHABE
What you need to know:
- The funding will be secured through a supplementary budget request to Parliament.
- The plant was commissioned in 2020 by President Museveni but the proprietor, Mr Magoola is said to have run into financial constraints, and approached the government for a bail out.
- She argued that government elected to invest in Magoola’s entity as opposed to starting its own factory from scratch.
The government will invest Shs578b into the contentious Dei BioPharma Ltd, a drugs and vaccines manufacturing plant owned by private businessman Mathias Magoola, the Minister for Science, Technology and Innovation, Dr Monica Musenero, has confirmed.
The funding will be secured through a supplementary budget request to Parliament.
The plant was commissioned in 2020 by President Museveni but the proprietor, Mr Magoola is said to have run into financial constraints, and approached the government for a bail out.
Dr Musenero said the money will enable the factory to put out its first lot of medicines, including generics like antibiotics, syrups among others by the end of next month, which will be supplied to the Ministry of Health.
“We asked for shs600 billion [but] they (government) have given us a bit less,” she said.
The Government has already invested Shs165b in the venture, according to the Minister.
The dolling out of public funds to a private investor has raised animated debate, with a section of the public questioning the move, especially after failure by the plant to produce a single drug after years of promise.
In her attempt to allay taxpayers’ fears, Dr Musenero said the government will co-own the factory, announcing that the steps to determine its shares are underway in the office of the Auditor General.
“People should not look at it like government is donating money. When this company makes profits, part of it will go to the consolidated fund, he approached government to co-invest with him. Money which is being given to Magoola is not free money, it is government’s equity,” she said.
She argued that government elected to invest in Magoola’s entity as opposed to starting its own factory from scratch.
“One of our strategic goals as a nation is to build the pathogen economy …we want to make our nation begin to contribute to the manufacturing of medicines. Currently, we spend over $600 million annually to import medicines so we want to bring the manufacturing domestically,” she said.
President Museveni Commissioned the plant located in Matugga, Wakiso District in July 2021, where the country was promised drugs like vaccines, antimalarial, cancer drugs and other generic drugs.
She attributed failure to meet earlier timelines to lack of funds, and disruption of the COvid 19 pandemic but assured Ugandans they are on course to start production, which is envisioned to offer low cost medicines on the market, and save on importation costs.
The first phase involved construction, and part of the money given by government was to enable the setting up of equipment. Phase two will involve the manufacturing of generic drugs, like antibiotics, making raw materials used in making drugs like pharmaceutical starch, and of injectable drugs, according to government.
According to the minister, the factory will employ over 1,200 Ugandans in the categories of scientist, technicians, administrators, and sales people among others.
