Overview
Tanzanian government allocated USD 975 million for fiscal year 2024/2025, representing a 6% increase from the previous year’s allocation of USD 921 million. Approximately 61% of the Ministry of Health’s development budget will be sourced domestically. Noteworthy budget allocations are for medicines and medical equipment USD 78 million), malaria, TB, HIV/AIDS, and hepatitis response USD 38 million, and epidemic control USD 7.7 million. The government is facing substantial gaps due to significant decreases in U.S., U.K., and European foreign assistance in the health sector. The current government budget does not cover the country’s stated healthcare needs.
Tanzania’s healthcare system is divided into government hospitals and private companies. American companies providing diagnostic services have successfully partnered with private and faith-based hospitals. For several years the government has called upon investors to establish pharmaceutical factories within the country. However, firms operating locally often face substantial challenges including lack of skilled human resources, high duty and VAT on raw materials and machinery, regulatory hurdles such as certification of medicines, lack of reliable electrical and water supply, and competition from international suppliers. Key pharmaceutical suppliers include China, Colombia, and India.
Sub-sector Best Prospects
• Supply of medicines and lab equipment
• Establishment of primary healthcare services
• Establishment of pharmaceutical companies
Opportunities
For information on government of Tanzania opportunities, please visit the Medical Store Department website.