The government is investing nearly N$178 million to expand Namibia's medical storage capacity as the Ministry of Health and Social Services continues efforts to address shortages of essential medicines at public health facilities.
The Central Procurement Board of Namibia (CPBN) and the Ministry of Health and Social Services signed a N$177.99 million contract for the project yesterday.
Following completion of the procurement process, the contract was awarded to New Era Investment (Pty) Ltd JV Summit Trading CC.
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The project comes at a time when patients across the country continue to report difficulties in obtaining medicines at state hospitals and clinics.
In May, the Ministry of Health and Social Services reported that national pharmaceutical stock levels stood at about 60%, below the ministry's target of at least 80%. The ministry acknowledged that several essential medicines were understocked or out of stock and said that emergency and direct procurement was needed to address the shortages.
The shortage has affected medicines used to treat chronic and serious conditions. Reports in May indicated shortages of medicines for hypertension, diabetes and eye conditions at Windhoek Central Hospital. Medical professionals warned that some shortages could affect services and put patients at risk.
The situation also exposed problems in the procurement system.
In June, the ministry cancelled orders for pharmaceutical and clinical products worth N$44.8 million after suppliers failed to deliver the medicines to the Central Medical Stores. The cancelled orders included medicines for mental illness, cancer, diabetes, high blood pressure, chronic conditions, and serious bacterial infections. The orders had been placed in 2025. The government has since taken steps to improve supplies.
Between 18 June and 1 July, the ministry received and distributed 33 categories of critical medicines and clinical supplies. The deliveries included cancer medicines, antibiotics, blood pressure medication, diabetes medicines, insulin, metformin, amlodipine, and other essential products. Despite these efforts, the ministry has said it is still working to stabilise the supply chain.
The new medical store is expected to help address one of the problems facing the system: insufficient storage space. The existing warehouse has a storage capacity of about 2 900 cubic metres, while the ministry requires about 4 600 cubic metres.
This leaves a shortfall of about 1 700 cubic metres. The new project will increase storage capacity and improve the conditions in which medicines and other medical supplies are stored before being distributed to hospitals and clinics. It will include the construction of a new medical store and the refurbishment of the existing warehouse. The project will also provide office accommodation, storage racking systems, security systems, water supply, electricity and sewerage infrastructure.
CPBN board chairperson Mary Shiimi said the project was important because medical stores play a key role in ensuring medicines reach health facilities.
"The significance of this project extends beyond the construction and refurbishment of physical infrastructure," Shiimi said.
She said medicines and medical supplies must be safely stored and made available to health facilities across the country.
Shiimi also called for the project to be delivered efficiently and with value for money. The ministry's executive director, Penda Ithindi, said the signing of the contract was an important step towards improving Namibia's medical storage capacity.
"The facility would help the ministry store medicines and other medical supplies according to health, safety and quality standards," he said.
For patients, however, the bigger question will be whether improved storage will translate into medicines being available when they visit public hospitals and clinics.
The storage problem is only one part of the medicine supply chain. Medicines must also be properly procured, delivered by suppliers, received at the Central Medical Store and distributed to health facilities on time. The recent supply problems have shown how delays at different points in the system can leave patients without treatment. The ministry has also moved towards direct procurement from manufacturers as part of efforts to improve the availability of medicines. In February, Health Minister Esperance Luvindao said the government was targeting a 95% stock availability level.
The ministry later said it would provide monthly updates on pharmaceutical and clinical product deliveries to improve transparency around medicine availability.
The government has also faced pressure from medical professionals and the public over medicine shortages. In May, doctors questioned the ministry's reported 60% stock level, saying shortages of critical medicines were still affecting patients in some public hospitals.
President Netumbo Nandi-Ndaitwah also raised concerns about shortages during a visit to the pharmaceutical manufacturer Fabupharm in Otjiwarongo in May.
"If there's one thing that gives me sleepless nights, it's when I'm hearing there is no medicine at our hospitals," she said. The N$177.99 million CMS project is therefore being implemented as part of a broader effort to fix Namibia's medicine supply chain. The new facility will not by itself solve medicine shortages. But with more storage space and improved infrastructure, the health ministry will have greater capacity to receive, store and distribute medicines.
The immediate challenge remains ensuring that medicines ordered by the government are delivered on time and reach the patients who need them.
With the contract now signed, construction and refurbishment of the medical storage facilities can proceed.