Government has announced the designation of certain pharmaceutical products for domestic production. The announcement that was made by Trade and Industry Minister, Dr Rob Davies in Pretoria, is the ‘second wave’ of the designation and is in line with the amended Regulations to the Preferential Procurement Policy Framework Act (PPPFA).
The amended Preferential Procurement Regulations were promulgated last year and make provision for designation by the dti of sectors, sub-sectors and industries identified in national economic development and industrial policies, for the procurement exclusively from domestic manufacturers.
South Africa has one of the worst disease burdens and consequently it is important to ensure supply security and development of local capacity. Minister Davies states that the designation of the pharmaceutical products will benefit the country both in terms of health and economy.
‘The designation includes the oral solid dosage tender worth R2.5 billion Rand over 2 years. The potential list of more than 70 pharmaceutical products is being finalised. The intention is to create security of demand for domestic production, attract foreign and domestic investment and to further industrialise the economy. This will create an opportunity to enhance local manufacturing capacity to create decent jobs, add value and build export platforms,’ said Davies.
Minister Davies added that the pharmaceuticals sector is the fifth largest contributor to South Africa’s import burden and that it is an important challenge to reverse this, whilst still ensuring that affordable healthcare is available to the private and public sector.
According to Davies, prices will be benchmarked internationally and local manufacturers will have to ensure that the benchmark is not exceeded to qualify, thereby ensuring that medicine prices remain affordable. He further said that for security of supply purposes, government would still continue to source some of its medicines from importers.
The ‘first wave’ of designation came into effect on 7 December last year and a number of sectors were designated.
For further information, please contact:
Sidwell Medupe
Spokesperson for Trade and Industry
Cell: 079 492 1774
Fidel Radebe
Spokesperson for Health
Cell: 079 517 3333
