On September 29, 2026, Minister of State for Industry, Hon. David Bahati, visited Microhaem Scientifics (MHS) Uganda to oversee the company's manufacturing operations in Ntinda and its flagship 25-acre biotech park in Naama. The visit highlighted the government's commitment to reducing Uganda's reliance on foreign medical supplies through import substitution, domestic manufacturing, and regional export promotion. This move aims to build a self-sustaining economy.
During the inspection, Minister Bahati emphasized the importance of protecting local producers, a central pillar of national industrial policy. To safeguard indigenous manufacturers, the government will enforce a 35% import duty on foreign medical products already produced locally with sufficient quality, quantity, and competitive pricing. This policy aims to promote import substitution and export promotion.
Microhaem Scientifics has made significant progress, starting as a supplier and now becoming a manufacturer. The company has expanded its operations, manufacturing 11 diagnostic products, including test kits for HIV, tuberculosis, Hepatitis B, and malaria, and currently employs 700 workers. MHS's growth has saved Uganda an estimated $45 million in capital during the current financial year through domestic diagnostic manufacturing.
The healthcare sector in Uganda faces significant trade imbalances, with the nation spending approximately $1 billion annually importing health products from foreign markets. Diagnostic tools and test kits account for $250 million in annual capital flight. The African continent spends roughly $50 billion every year on imported health products, relying on foreign producers for 95% to 99% of its total medical supplies.
Dr. Cedric Akwesigye, Co-Founder and Managing Director of Microhaem Scientifics Uganda, emphasized the urgent economic necessity of prioritizing domestic procurement over foreign reliance. He noted that Uganda's annual import bill for health products leaves the economy vulnerable. MHS's Ntinda plant, launched in 2023, has expanded its production capacity, and the company is advancing construction on its Namanve Biotech Park.
The Namanve Biotech Park is designed as an end-to-end research and production hub, aiming to reduce raw material imports, introduce stem cell regenerative medicine, pioneer cancer therapeutics, and provide gene editing treatments for sickle cell disease on the continent. The government supports local manufacturers, offering a 10-year tax holiday to encourage reinvestment and local capacity building.
Minister Bahati pledged government assistance in helping MHS secure long-term patient capital to complete its expanding infrastructure. The government's support for local manufacturers like MHS is crucial in achieving Uganda's health sovereignty goals and reducing reliance on foreign medical supplies.
Key points
- The Ugandan government will enforce a 35% import duty on foreign medical products already produced locally.
- Microhaem Scientifics has saved Uganda an estimated $45 million in capital during the current financial year.
- The African continent spends roughly $50 billion every year on imported health products.
