Tanzania is declaring war on its import bill. In a bold strategic pivot, the government has launched a massive drive to produce 50% of its medicines locally, aiming to slash the crippling Sh130 billion ($1 billion) it spends annually on foreign pharmaceuticals.

The announcement was the centerpiece of the Tanzania Pharmaceutical Production Investment Forum held in Dar es Salaam on January 19, 2026. Health Minister Mohamed Mchengerwa did not mince words: "National health security cannot be built on dependence." It is a lesson learned the hard way during the Covid-19 pandemic, when global supply chains snapped, leaving African nations at the back of the queue for vaccines and essential drugs.

The "Kibaha Cluster" Strategy

To back up the rhetoric, the state has put money on the table. A Sh2.5 billion ($19 million) kitty has been mobilized, including a Sh1.3 billion ($10 million) investment in a state-of-the-art shared laboratory facility. This lab, to be situated in the new pharmaceutical clusters of Mloganzila and Kibaha, will be a game-changer. It will allow local manufacturers to test quality and bio-equivalence without sending samples to Europe or India, drastically cutting costs and time-to-market.

This move mirrors Kenya’s own struggles to boost local manufacturing, but Tanzania seems to be moving with a singular focus. The designated 40,000-square-meter industrial park in Kibaha is being fast-tracked, with the government promising to cut the red tape that typically strangles investors in East Africa.

• The Numbers: Currently, Tanzania imports over 80% of its medical supplies. The target is to flip this ratio, not just for domestic use but to supply the wider SADC and EAC markets.
• Investor Incentives: The "Pharmaceutical Investment Acceleration Taskforce" (PIAT) has been created to offer a "one-stop-shop" for investors. Approvals for land, taxes, and product registration will now happen concurrently.
• Regional Competition: With Kenya also eyeing the title of "Pharmacy of East Africa," this aggressive move by Dar es Salaam heats up the regional rivalry. It signals that Tanzania is no longer content to be a market for Kenyan goods; it wants to be the factory.

A Matter of Security

"We must choose between the tax revenue from imports and the lives of our people," Mchengerwa stated. By localizing production, Tanzania not only saves foreign exchange but also secures its supply chain against future global shocks. For the private sector, the message is clear: the train is leaving the station.

As construction cranes rise over Kibaha, the region watches closely. If Tanzania pulls this off, it could become the new hub for medical tourism and manufacturing, challenging Nairobi’s dominance. For the patient in a rural dispensary, however, the geopolitics matter less than the result: affordable, available, and high-quality medicine, made at home.