# African pharmaceutical production expansion efforts

> Live situation record from CLSTR: https://clstr.news/situations/african-pharmaceutical-production-expansion-efforts
> Updated: 2026-09-28T05:49:23.000Z. Sources: 6. Developments: 2.

Tanzania and the United States have entered a strategic partnership to establish Dar es Salaam as a regional pharmaceutical production and distribution hub. This initiative aims to serve the Southern African Development Community (SADC) market of over 300 million people. To facilitate this, Tanzania is developing a pharmaceutical special economic zone at Mloganzila and working to align tax and tariff arrangements for raw materials to improve the competitiveness of locally manufactured medicines.

Building on these regional efforts, Nigeria and Tanzania have set specific targets to increase domestic pharmaceutical production by 2030 to reduce reliance on costly imports. Nigeria aims for 70 percent local production of essential medicines, while Tanzania targets 80 percent. Both nations are addressing vulnerabilities such as foreign exchange pressures and supply chain issues through proposed fiscal interventions, including tax incentives and prioritized purchasing of locally manufactured goods.

In Nigeria, the government is advancing the Presidential Initiative to Unlock Healthcare Value Chains (PVAC), which has reportedly secured $2 billion in financing at single-digit interest rates. To support the industry, an Executive Order has introduced zero tariffs on pharmaceutical machinery, active pharmaceutical ingredients (APIs), and excipients, benefiting 87 manufacturers. While the number of local pharmaceutical companies has grown from fewer than 180 in 2021 to over 200, pharmaceutical import values reached $766.2 million in 2025. Industry leaders have urged international investors, particularly from India, to establish local production facilities to serve the broader African market.

## Timeline

### 2026-09-28: Nigeria targets 70% local pharmaceutical production by 2030

Nigeria aims to produce 70% of its essential medicines locally by 2030 to enhance health security and reduce import dependence through fiscal incentives and the Presidential Initiative to Unlock Healthcare.

5 sources. https://clstr.news/cluster/nigeria-and-tanzania-target-increased-local-pharmaceutical-production-by-2030

### 2026-09-05: Tanzania and U.S. partner to develop regional pharmaceutical hub

Tanzania and the U.S. are deepening health cooperation to establish Tanzania as a pharmaceutical hub for the 300 million people in the SADC region.

2 sources. https://clstr.news/cluster/tanzania-and-us-partner-to-develop-regional-pharmaceutical-hub

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Cite as: African pharmaceutical production expansion efforts. CLSTR, https://clstr.news/situations/african-pharmaceutical-production-expansion-efforts