Uganda Backs Dei Biopharma to Slash Medicine Imports and Boost Economy

Uganda’s Ministry of Health has committed to purchasing locally manufactured pharmaceuticals from the Dei Biopharma plant in Matugga, Wakiso District. This strategic shift aims to reduce the nation’s reliance on expensive medicine imports and stabilize foreign exchange reserves through the “Buy Uganda, Build Uganda” policy.

For years, Uganda has faced a systemic drain on its treasury due to a medicine import bill. By transitioning to domestic production, the government intends to transform the healthcare sector from a cost center into an economic engine. This is not merely a health initiative; it is a macroeconomic play to pivot the country toward a “knowledge economy” rooted in science and technology.

Government Investment and Fiscal Oversight of Dei Biopharma

The Ugandan government has invested more than 700 billion shillings (approximately $190 million) into the Matugga facility. Dr. Ramathan Ggoobi, the Secretary to the Treasury, Ministry of Finance, confirmed during a Monday site visit that additional funding has been allocated to the facility in the new budget under the Science and Technology budget.

To prevent the project from becoming a financial liability, Dr. Ggoobi emphasized that the investment is not a “blank check.” The Auditor General conducts regular audits because the state holds a stake as a co-investor. Furthermore, a newly appointed panel of about six bankers and scientists, approved by the president, must now vet all future funding rounds before capital is released.

Scaling Production: From Generics to Advanced Immunotherapy

Dei Biopharma currently produces around nine generic drugs, including paracetamol and capsules used in cancer treatment. However, the company’s roadmap targets high-value biologics and specialized medicine.

According to Dr. Ggoobi, the plant has the potential to replace nearly half of Uganda’s medicine imports. The expansion plan includes:

• Immediate Targets: Insulin, vaccines, and cardiovascular medicines.
• Advanced Research: Treatments for HIV, malaria, tuberculosis, sickle cell disease, diabetes, and Alzheimer’s disease.
• Biologicals: The National Drug Authority has already licensed the plant to manufacture filgrastim, erythropoietin, and trastuzumab.

Dr. Matthias Magoola has filed more than 100 patent applications with the US Patent and Trademark Office. One notable filing from February involves a cancer immunotherapy that targets shared genetic mutations across tumor types. The company claims this could drop treatment costs to below $100, a stark contrast to some existing therapies that exceed $500,000.

The company also intends to produce cheaper generic versions of patent-protected drugs, such as the HIV prevention medicine lenacapavir, once it is able to.

Critical Infrastructure Gaps Threatening Full Capacity

Despite the government’s backing, the facility is currently hampered by severe utility shortages. Dr. Magoola reported that only three or four of the eight completed production blocks can operate at any given time due to insufficient electricity. Full-scale operations would require up to 80 megawatts of power.

Water scarcity is equally pressing. The plant consumes up to 2 million liters of water daily but remains disconnected from the National Water and Sewerage Corporation utility network. Dr. Magoola has formally requested that the government provide a stable power supply and an extension of the national water grid to the site.

The Path to International Certification

Ministry of Health Permanent Secretary Dr. Diana Atwine stated that local approval from the National Drug Authority is only the first step. The ultimate objective is for Dei Biopharma products to be prequalified by the World Health Organization (WHO).

Dr. Atwine said “Dei Biopharma needs to be given the opportunity to grow,” adding that “it must be supported to ensure it achieves its goals” of reaching international markets across Africa and beyond.

Economic Impact and the Shift from Agriculture

The investment in Matugga represents a broader shift in Uganda’s economic strategy. Dr. Ggoobi argued that the country cannot develop solely by increasing the production of potatoes and maize.

By fostering “accelerator industries” like biotechnology, Uganda aims to create jobs for its youth—thousands of whom are already employed at the Dei Biopharma site. The goal is to keep capital within the country.