Published by the government of Zimbabwe
5 October 2007
editorial
Harare — Essential pharmaceutical drugs are becoming very expensive in Zimbabwe and even many of those on medical aid are finding it almost impossible to afford them.
The main reason for the enormous rise in prices is simply because Zimbabwean pharmacies import packaged drugs using foreign currency sourced on the parallel market. The high cost of the currency, coupled with the high mark-ups traditionally allowed retail pharmacies, makes these essential medicines very expensive indeed. Medical aid societies put up their benefits this year, but were caught short by a rate of inflation for pharmaceuticals that was far higher than even the general rate.
The pharmaceutical industry is aware of the problem and has come up with partial solutions. These, presented to a parliamentary committee this week, are not really new. But it is time they were implemented, along with proposals put forward more than 15 years ago by the then president of the association grouping retail pharmacies.
Soon after independence, Zimbabwe adopted the recommended path of drawing up a list of essential drugs. This does need to be updated, to ensure that ARVs and the latest advances in pharmaceutical research are reflected, but that list is what must become the centre of a new policy.
The annual demand for every drug on the essential list can easily be estimated. The State buys almost all its medicines through NatPharm, and the retail pharmacies have an association that should be able to gather the necessary data from its members. Armed with this total demand, after adjusting for the expected increase when prices fall significantly, it should be possible to put out, for each drug on the list, a Zimbabwean tender, that is a contract for the entire national need for a year. At the same time, the Reserve Bank should make pharmaceutical raw materials one of the first calls on the official foreign reserves. The tenders can specify that points will be awarded for local manufacture or packaging, as this will save foreign currency as well as boost Zimbabwean industry. For the sort of orders we are talking about, even the most hidebound international companies holding exclusive patents will probably agree to local partners at least making the pills from bulk supplies of the drugs or solutions and packing them.
But for most drugs on the list, generics are allowed, and if orders are large enough, many of these can be made in Zimbabwe quite viably from fairly simple raw materials. The final result will be far less foreign currency spent, far more drugs available, the best possible prices, assured supplies and the upgrading of a critical modern industry. The main final result will be human. A lot of Zimbabweans will be able to afford the drugs they need.
The advantages are so obvious that there is urgent need to change our system, returning to the policy of the 1980s when local manufacture or packaging was almost insisted upon, official price foreign currency was made available for the necessary inputs, and Zimbabwe's pharmaceutical industry took off.
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