From Passive to Active Industrial Policy: Improving Locally Manufactured Supplies to the Tanzanian Health Sector
This research included interviews in 2013–14 with 17 manufacturers and distributors
Abstract
Seizing a major opportunity: industrial development with health sector benefits. Local manufacturers in Tanzania are not sharing in the large and expanding market for health-related commodities. The health sector buys medicines and other supplies such as cotton wool, protective gloves, syringes, diagnostic test kits, laboratory supplies, medical equipment, and infection control items such as soap and disinfectant. Imports soared to over USD 350 million in 2013, with donor funding, but a small rise in exports has petered out. REPOA’s 2013 research found that just 16% of medicines and 22% of other health supplies were made locally. Local firms supply a declining share of medicines and a narrow range of other supplies including bed nets, bed sheets and mattresses, topical products such as white spirit, medical furniture and cleaning products.
Health professionals interviewed thought that better local supplies could reduce damaging shortages. Donors now view local suppliers positively. To seize this market opportunity, local manufacturers must invest, upgrade and expand. To do so, they require active and targeted industrial policy support.
This brief reports findings from a research project, including interviews in 2013–14 with 17 manufacturers and distributors.
This work is part of the ‘Industrial Productivity, Health Sector Performance and Policy Synergies for Inclusive Growth: A Study in Tanzania and Kenya’ project
Citation
Samuel Wangwe, Paula Tibandebage, Maureen Mackintosh, Caroline Israel, Edwin Mhede, Phares Mujinja (2014) From Passive to Active Industrial Policy: Improving Locally Manufactured Supplies to the Tanzanian Health Sector. REPOA Brief 46, September 2014