Improving the Supply Chain for the Health Sector: What Role for Local Manufacturing?

Abstract

This paper provides new evidence on the pattern of local and imported supplies to different health sectors and via different supply chains in Tanzania. It shows that around 16% of the medicines found on shelves from our tracer sample had been manufactured in Tanzania; about 15% came from Kenya; and nearly 70% were from outside East Africa, mainly India. Medical supplies traced from Tanzania were mainly basic commodities. All medical equipment, more complex supplies such as syringes and test kits, and other basics such as bandages, were imported. In general, the relatively low technical level of manufacturing in Tanzania was felt by health sector stakeholders to be constraining local supplies to the health sector. Health sector interviewees stated that availability of supplies on the private market in Tanzania had been improving, but that the market share of medicines and other supplies from Tanzanian manufacturers appeared to be declining, notably because of rising price-based competition from imports. Opinions varied on comparisons between the quality and price of local vs. imported items. However, there was quite widespread support among health sector interviewees for the proposition that more availability of local supplies – and government support to assist local firms – was desirable to improve the level and security of supplies to the health sector This work is part of the ‘Industrial Productivity, Health Sector Performance and Policy Synergies for Inclusive Growth: A Study in Tanzania and Kenya’ Project